A Refresh Debt Services we will appoint one of our IVA experts to personally assess you to ensure that an IVA is the best debt solution for you.
If you think an IVA is the best solution for you complete this IVA Help form and an IVA expert will call you back.
If we think you are eligible and an IVA is the best option for you we will take you through our 5 step IVA process.
1. IVA Paperwork
We will take you through an income and expenditure statement, this is called a ‘Statement of Affairs’ this is a list of your assets and liabilities (similar to that of a business’s balance sheet).
2. Insolvency Practitioner (IP)
The Insolvency Practitioner (IP) will draft a formal written proposal to your creditors. This will be signed by you to declare this is the best payment offer you can make to your creditors; the IP will work for you to secure a low repayment. The Insolvency Practitioner (IP) will then forward the proposals to all your creditors.
We will then make an application to the court for an Interim Order, meaning that no legal action can be taken against you while the IVA is being put into place.
3. Creditors Meeting to Approve IVA
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 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
4. Start of Repayments
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.
5. Debt Free after 5 Years
Upon successful completion of the IVA you will be 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.
Thinking of an IVA – What Next?
If you are thinking of an IVA and wish to start your IVA today or to find out more information call 0800 121 48 63 to speak with one of our specialist IVA advisors, if you do not have time to call us, complete this IVA help form and we will call you back.