How to start an Individual Voluntary Arrangement

insolvency practitioner

The thing you have to do to start an IVA is to find 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 files an Interim Order with the court. Once the Interim Order has been filed, your creditors are not allowed to issue bankruptcy proceedings against you until 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 debtors and 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 75% in favour is needed to accept the IVA. The decision to accept the IVA 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.

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