If you fit the following criteria:
- Are in regular reliable income
- Have accumulated debts over £15,000
- Have debts from 3 or more creditors
- Do not want to go bankrupt
We will assess you for suitability for an IVA (Individual Voluntary Arrangement); if we think you are eligible we will take you through the following process:
We will take you through an income and expenditure statement, this is called a ‘Statement of Affairs’
If you still suitable for an IVA the Insolvency Practitioner (IP) will draft a formal written proposal to the creditors. This is signed by you to declare this is the best payment offer you can make to your creditors. The Insolvency Practitioner (IP) will then forward the proposals to all your creditors.
An application may then be made to the court for an Interim Order. This will mean that no legal action can be taken against you will the IVA is being put into place
The IP will call for a creditor’s meeting. At the meeting the creditors will be asked to vote in favour of, or against the IVA. The creditors don’t generally meet in person for this but will write to the Insolvency Practitioner.
Voting at the creditors meeting
- If only one creditor votes for the IVA then the IVA will be approved
- If a one creditor vote against the IVA; and their share of the debt is less than 25% of the total debt, the meeting will be suspended and the other creditors who didn’t vote will be called upon to vote.
- If the creditor who votes against the IVA owns more than 25% of the total debt then the IVA will fail
- An IVA will only be approved if 75% of the creditors vote to approve the IVA
- If the creditor doesn’t vote on the day they will still be bound by the terms of the IVA
When an Individual Voluntary Arrangement (IVA) is accepted the Insolvency Practitioners role becomes that of a supervisor. Their role is to monitor the IVAs progress and ensure that the terms and conditions that were agreed to at the creditors meeting are properly adhered to.
It is your responsibility to pay the agreed payments to the IP who will then ensure that these payments are distributed to all creditors on a pro-rata basis in accordance with terms and until the successful completion of the IVA. It is your own interest to maintain payments to an IVA as failure to pay will almost certainly result in the failure of the IVA.
Upon successful completion of the IVA you will considered debt free even though you may not have actually paid off all of your debts in full. Any outstanding balances are written off (known as composition of debts) and you are then free to make a fresh financial start.
To start your IVA today or to find out more information about IVA call 0800 121 48 63 to speak with one of our specialist IVA advisors
