IVA Advice
Individual Voluntary Arrangements
The IVA approval process
The following IVA advice explains the IVA approval process.
Stage 1
Select an Insolvency Practitioner and complete an application form. This application will be reviewed by the Insolvency Practitioner who will advise whether you meet the qualifying criteria for an IVA and give you a decision on whether they can make an IVA application on your behalf.
Stage 2
The Insolvency Practitioner will firstly contact all your creditors and inform them that they are now acting on your behalf as you legal representative. The Insolvency Practitioner will then seek an Interim Order to give you full protection from your creditors during the IVA process, this prevents any of your creditors seeking bankruptcy proceedings.
Stage 3
The Insolvency Practitioner will then create an IVA proposal which will detail the terms of the IVA, how much you intend to repay and the timescale over which it will be repaid. The Insolvency Practitioner will also prepare a legal statement called a Nominees Report.
Stage 4
Your IVA proposal will be given to your creditors who are asked to vote on whether to accept it, all the creditors are invited to attend a meeting to discuss the IVA proposal and vote although in most cases any votes are cast in absentia and creditors do not attend the meeting. The outcome of the voting will determine whether your IVA gets approval.
Stage 5
If the IVA gets approval then you start making your payments, continue these payments and you are on course to being debt free.