How The Individual Voluntary Arrangement (IVA) Procedure Works

1. Use our Debt Wizard to see if an IVA is the right debt solution for your own personal financial situation.
2. If an IVA is the best solution for you, simply contact us for further help.
3. An IVA expert will call you to discuss your financial solution and complete the final form to assess whether you fit our IVA criteria. This is entirely free of charge.
4. A professional IP advisor will then represent you and contact your creditors informing them that they are representing you legally.
5. Based on the information you provide, a realistic repayment amount will be agreed with you, and an Individual Voluntary Arrangement (IVA) proposal will be draughted to set out the terms. Once drawn up, you’ll need to check, sign and return it to us, ensuring you double-check it for factuality.
6. Your IP advisor will then apply to the court for an interim order to legally protect you from your creditors.
7. Once the Interim Order is granted no legal action may be bought against you. In fact, you are fully protected from creditors issuing or continuing bankruptcy proceedings.
8. A "Nominees Report" statement is then prepared to give a professional opinion on how bonafide the IVA offer is.
9. A meeting of creditors is then held. However, in practice, the voting (of the creditors) is generally done prior to the meeting.
10. Creditors must vote for or against the agreement in order for it to be officially approved. If only one creditor votes "for" the IVA, approval will be given. If one creditor votes against the IVA and they represent less than 25% of your total debt, the meeting will be postponed so that other creditor who did not previously vote can vote. As long as 75% (in value terms) of the creditors that have voted, vote to accept the IVA, it will be approved and will then become legally binding on all other creditors, whether they voted or not. If any of the creditors don't vote, it is assumed that they will vote FOR the IVA.
11. If the creditor who voted against the IVA represents more than 25% of the total debt owed the IVA will fail and not meet approval.
12. Once approved you are bound by law to keep up your monthly IVA payments. You must pay the agreed payments to your IP who will distribute to creditors in accordance with the IVA terms until the IVA is completed. Failure to make the IVA repayments will result in the IVA failing and you will no longer be protected.
13. Once accepted your creditors can never bother you again, as long as you keep to the terms of your IVA.

IVA Paperwork Required

• Property Valuation
  
• Annual Mortgage Statement
  
• Endowment Policy Surrevender Value
  
• Hire Purchase (HP) Agreements (car/computer finance, etc)
  
• Salary/Wage Payment Slips for past three months for you and spouse
• Creditor Statements or Letters. These must show the amount owed to creditors and the account reference number
• Any legal letters from creditors solicitors
• Personal financial history and reasons for financial difficulties from redundancy or illness to increased bank charges or other reasons.

Debt Solutions: IVAs
Debt Solutions: IVAs: Debt IVAs
Debt Solutions: IVAs: Individual Insolvency Register
Debt Solutions: IVAs: IVA Procedure
Debt Solutions: IVAs: Debts And Non Dischargeable Debts

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