January 2008

IVA - Individual Voluntary Arrangement: Process

First of all, you need to understand Pro's and Con's of IVA and decide whether this option is for you.

Secondly, when you decide that this is the option appropriate for your situation, discuss this with IVA specialists. You should speak to 2-3 at least to gain a better understanding of the offers and solutions.

Before the agreement can be put on the table for creditors, specialists will have to go through several actions with you. This should take no longer than 5-6 weeks.

You will fully review your financial situation with a debt advisor
The advisor will decide whether IVA is a right solution for you and work out how much you can afford to pay to your creditors
The adviser writes down a statement of affairs which is then passed on to the Company Insolvency Practioner (IP)
IP, then, writes a formal proposal to your creditors
Proposal is discussed and some modifications might be required
There is also a formal meeting arranged for creditors where they can discuss your proposal
If 75% of teh value of the creditors agree, then the proposal becomes legal agreement between you and your creditors
All interested parties are informed (i.e. court and all creditors)
All of the documents must be also signed by you if you give your consent and signature process witnessed by a legal representative
You should follow the agreement over a fixed period of time (usually 5 years) and after that you are free of debt