How to get an IVA?

An Individual Voluntary Arrangement is an agreement with your Creditors and an alternate choice to Bankruptcy. Obtaining an IVA is legal formal agreement.

In order to obtain an IVA it is important that you and you IP prepare the correct paperwork and all necessary documents. Dealing with Creditors can be very tricky. It is important for you to remember that in the end the they want to get as much of their money as possible, ideally they would love to get all of their money back; however Creditors know that this is not always possible especially for those in debt.

When dealing with your Creditors they will give you a certain amount of leeway but it is important for you to remember that they will consider the payout difference between and IVA and a Bankruptcy, if the peoples you own money stand to make more with a Bankruptcy they will not approve an IVA for you. They will also stipulate that if the IVA is not completed to all specified standards that you will go directly to Bankruptcy.

When beginning the IVA process you should seek the assistance of a regular registered Insolvency Practitioner. An Insolvency Practitioner is also known as your nominee. Your nominee will work with you in creating a proposal to your Creditors. The proposal will contain all of your information involved in your debt, inclusing your assets and account information. If your Creditors accept your proposal your Insolvency Practitioner will take charge of your IVA and supervise the process.

After your proposal has been drafted a meeting with your Creditors will be held. During this meeting you will be present with your Insolvency Practitioner and your Creditors. A discussion of the proposal will take place, at which time Creditors may request modifications to your proposal that you are able to agree or disagree with. Once an official agreement has been decided the Creditors will take a vote on whether or not to accept your application. The vote of your Creditors must be approved by a minimum of 75%. Even if the other 25% disagree they are bound legally by this proposal and no Creditor will be able to take further action against you during the time of your IVA.

It is not necessary for you to be in attendance at this meeting but in an effort to keep you informed of all decisions and allow you to voice your concerns and opinions it is strongly requested that you are in attendance. If you are not in attendance at this meeting it will be difficult for you to voice your opinions or make comments to proposed changes. In the instance that changes are offered by the Creditors you should also ask for the time to consider such changes so that you can be fully aware of their impact. Your Insolvency Practitioner is available to advise you on such decisions.

The greatest benefit of an IVA is that it keeps you from filing for Bankruptcy, however if you are not approved for an IVA the Creditors may push into Bankruptcy, it is because of this that you want to prepare the best proposal possible and keep an open line of honest communication with your Insolvency Practitioner and your Creditors.

Steps to starting an IVA

  1. First of all seek for professional consultancy, make sure you are dealing with reputable companies specialized in Debt Solutions (check their license). Usually an initial consultation is free of charge, make sure you contact different firms so you can understand all the costs involve. Don’t hurry, take time to understand and compare all the options available.
  2. You may be requested to complete and return an application with copies of your recent bank statements, at which time you will discuss, the areas of your finances and what the costs of the IVA will be.
  3. An IVA consultant upon the receipt of your paperwork will now contact you. During this time they will go over your application with you and discuss your options. In basic terms they will help you to decide if an IVA is right for you or if Bankruptcy is the best option, as well as inform you on the necessary requirements for an IVA.
  4. After meeting all of the minimum requirements you will be directed to a member of the IVA program who will discuss with you the process of starting an IVA, this member will be your Insolvency Practitioner.
  5. Your Insolvency Practitioner will act on your behalf in contacting your Creditors and providing them with all the necessary information. They will also serve as your guide through the process and during your IVA to advise you and answer any questions you may have.
  6. Now that all of your information has been processed and provided to your Insolvency Practitioner your IVA proposal will be created. This proposal will serve as a written agreement dictating the terms of your IVA.
  7. During the process of implementing your IVA you will need to complete an Interim Order. This will protect you from any action taken upon you by your Creditors.
  8. Your Insolvency Practitioner will now create a letter of recommendation for you stating their opinion as to whether or not an IVA is suitable for you.
  9. The meeting with your Creditors is now ready to be arranged where your IVA will be discussed and voted on.
  10. Upon approval your IVA is a legally binding contract between you and your Creditors. Your monthly payments will be set up based on what you are physically able to afford.

Remember that an IVA as other solutions are very specific thing and should be carefully evaluated.

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