Applying for an IVA
It can take a couple of months from when you first apply for an IVA to get it all set up.
- You will need to complete an application form for one of the companies that deal with IVA's - Individual Voluntary Agreements. You will need to disclose your financial situation as well as including copies of recent bank statements, pay slips, mortgage statement, property valuation, creditor's letters/statements.
- Having received your application, the company you are dealing with will contact you to discuss your situation and the IVA application.
- If your application is accepted you will become part of the IVA - Individual Voluntary Arrangement programme and will be assigned an Insolvency Practitioner to work with, if you have not been already.
- The Insolvency Practitioner will then act on your behalf to contact all of your creditors to inform them that they are your legal representative and that an IVA proposal is being put together.
- An IVA proposal will be drafted. This sets out the actual terms of the IVA - how much you will pay and so on.
- The IP will obtain an 'interim order'. An interim order provides you with protection from your creditors issuing or continuing with bankruptcy proceedings.
- A statement called a 'nominees report' is prepared with gives a professional opinion as to whether the IVA is a genuine offer.
- A meeting of your creditors will be held. This will be to vote on whether the IVA goes ahead or not. Creditors will usually not attend in person, rather they will send a letter or fax outlining whether they agree or not. Any creditors that do express an opinion are taken to be in favour. For the IVA to be accepted creditors representing over 75% of your debt must be in favour.
- Once the IVA is approved your are legally obliged to keep up your monthly payments and your creditors should not contact you directly.