How to Start an Individual Voluntary Arrangement (IVA)
As soon as you consider seeking advice or realise that you definitely require protection from your creditors, you need the services of an insolvency practitioner to act on your behalf.
The insolvency practitioner will prepare an IVA proposal document containing details such as:
- Your personal circumstances
- Your financial situation; and
- How you propose to repay your debt.
When the IVA proposal has been finalised and approved by you, the insolvency practitioner can file an Interim Order with the Court. If an Interim Order has been filed, you are protected from creditors taking further action against until such time as they have decided whether to accept or reject your IVA.
The insolvency practitioner circulates a Nominee's Report which gives a professional opinion about the IVA being proposed and whether a creditors' meeting should be called. This report is circulated amongst the creditors.
The creditors hold a meeting to discuss the IVA. They vote on whether or not to accept the IVA proposal in its present form or with modifications. A vote of over 75% in favour is needed to accept the IVA. The decision to accept the IVA is legally binding on all the creditors.
The supervisor appointed by the creditors at their meeting administers the IVA and ensures that the creditors get paid according to the agreed terms.
It's hard to think straight when you've got a serious debt problem. You're stressed, you can't sleep, people constantly hound you for money and the temptation is to bury your head in the sand. What you need is honest, independent and cost-free advice on the best way of becoming debt-free.
Contact us today for a confidential talk. We'll show you a positive way forward. To speak to an adviser, who will call you to discuss your specific requirements click here to submit your details via our contact form