DebtOptions

Here are some quick resources to help explain what an Individual Voluntary Arrangement (IVA) is and if it is right for you:

• Read a basic overview of IVAs in our guide, Debt Problems? – Which Solution Is Right For You?
• Read some of the advantages and disadvantages in our guide to Understanding the Advantages of IVAs.
• Here is a simple guide to the usual IVA process and how we would help you through it.

Here is a simple guide to the usual IVA process and how we would help you through it.

Assessing the Situation

The first step in obtaining an IVA is to set up a relationship with a Licensed Insolvency Practitioner to handle all aspects of the IVA for you. When you begin the process of obtaining an IVA with us, we will recommend a Licensed Insolvency Practitioner who is suited to your individual situation. Usually, the Licensed Insolvency Practitioner will interview you or ask you to complete a questionnaire in order to decide whether they will take your case forward. This will look at areas such as your total debts, your creditors and your current finances. You should answer all questions as fully and honestly as possible.

IVA proposal for creditors

Debt problems can be very stressful no matter what type of person you are. For many it can be difficult to even see a way forward. The first thing you need to do is get some clear, calm, professional advice on which is the best option to resolve the situation.

To begin with you can undertake a complete review of your financial situation with our professional debt advisors. They can help calculate the amount of money you are going to realistically be able to offer to repay your creditors each month. They can also then offer professional opinions on whether your IVA repayment offer is both likely to be accepted and a workable solution for you. If you choose to do so, they then work to prepare a ‘Statement of Affairs’ on your behalf, for the Insolvency Practitioner (IP) who will represent your case to your creditors. This process may seem daunting but our advisors can guide you through each step to help you complete it more confidently.

Final Considerations before You Commit – Safeguarding Choice

This is the time that any other available options should be explained to you. Since everyone’s situation is different, an IVA may not be optimal for everyone. Although many people at this stage simply have a strong need to find solutions in the short-term, an IVA is a long term commitment, typically lasting at least 5 years. Explaining other options should safeguard you to make sure you have been given easily understood information to make the best possible choices, especially if you feel under some pressure. Our team will make sure you have all the information on the options available to you to make the right decision.

Should you decide to go ahead with an IVA, your IP then creates a formal written proposal for the creditors. As a rule, this generally details all your debts and the relevant background situation. Signing this document gives your agreement to the proposal being sent to your creditors. It needs to be witnessed by a solicitor (or a Commissioner of Oaths). Again, although it may appear complex, our team will help you easily understand and complete this stage.

Your IP Presents the Proposal to your Creditors

Following this work, your IP presents the proposal to your creditors. They may simply accept it outright. This stage is when creditors are described as ‘holding a creditors meeting’ with your IP. In reality, it is probably better described as a process rather than always being a traditional face to face meeting. The creditor’s representatives do not always actually attend in person; instead, they may submit their agreement to the proposal in writing. They may instead sometimes request some amendments. During this process, there needs to be acceptance of the agreement by at least 75% of your creditors that vote in order to render your IVA proposal as a legally binding agreement for all creditors. Our team aim to take the logistics of this stage on board for you and your IP can keep you up to date without you having to deal with creditors directly.

Once the IVA Is Formally Agreed

You, the court and all creditors are given formal notice of the outcome of the ‘creditors meeting’ process. It is usual for your IP to become the IVA supervisor at this point: the person who will be overseeing any asset disposal (if applicable) and keeping track of the monthly payments made to creditors. They would also support you throughout to make sure any other conditions required by the creditors are fully met.

Becoming Debt Free

From this point, you should have a monthly payments schedule that is accepted by the creditors. Providing it is kept to for its agreed lifespan, this method should help you feel like you have put your finances in order and potentially lift the strain of feeling things had become out of control. It is vital to keep to all the agreed conditions (including the payment schedules). If you do, at the end of the IVAs agreed lifespan, any remaining debts and interest are written off.

Why not take the next step and apply online or call one of our debt management advisors for a no obligation free fact finding session on 0800 234 3605. You can get immediate debt advice to directly support you in dealing with your unique situation.