How to set up and start an IVA

At ivavahelpcenter.co.uk, our insolvency practitioners have helped thousands of people to help set up an IVA. In this section we will provide a detailed guide explaining steps that you need to take in order to start an IVA.

Although it is primarily the job of your insolvency practitioner to set up and complete the IVA process; it is very important that you understand how this process work.

1. Where do I get advice on IVA?
2. How much will the IVA cost me?
3. What is IVA approval process?
4. What are the criteria for an IVA?
5. How does it work?
6. Which one do I choose bankruptcy, an IVA or a debt management plan?

For an IVA to be successful, it is very important that you are prepared and have all the appropriate documentation ready which will allow us to start your IVA process.

An IVA is an alternative to bankruptcy; it legally binds you in a contract which will allow you to pay back your creditors on a monthly basis. You will be paying a lower amount to all your creditors.

For an IVA process to be successful it is very important that your creditors are reasonably flexible in giving you the chance to pay back their debt. One reason creditors are mostly flexible in accepting an IVA is because the prospect of getting their money back is as good as it is in a bankruptcy.

In order to start your IVA, your insolvency practitioner will set up a proposal, and send to your creditors. At this stage your insolvency practitioner is regarded as a "nominee". Once the creditors accept your proposal, your practitioner becomes the "supervisor" of the IVA. Throughout the duration of your individual voluntary arrangement, your insolvency practitioner will do things necessary to make sure that your IVA is completed successfully.

After the proposal, a meeting of creditors is held. At this meeting creditors will have to vote either against or for your IVA. For an IVA to be accepted, it needs at least 75% of the votes from the creditors. If you do receive 75% of the vote, those creditors who did not vote or voted against the IVA will also be legally bound.

Since it is an individual voluntary arrangement, meaning you are voluntarily making this arrangement to pay back the debt; creditors may or may not put forward changes to the proposal. However, they cannot impose these changes on you. It is up to you whether you accept or reject these changes.

Legally you are not required to attend the creditors meeting, but in practice your insolvency practitioner may want you to attend the meeting. This will give you a clear view of what your IVA is going to look like once it is in place. Also it will ensure that last-minute changes are dealt with as quickly as possible.

An IVA gives you an opportunity to avoid bankruptcy. However, if your IVA proposal is not accepted, your creditors can force you to bankruptcy. Hence why, it is vital that you put forward an offer that your creditors are more likely to accept. You need to be completely honest and open with your insolvency practitioner so that he/she can devise a plan of action that will be easier for you to follow.

How do I start an IVA?

1. You complete and return our standard application form together with copies of all recent bank statements. We will then discuss areas with you such as what the costs of the IVA are.
2. On receipt of your questionnaire one of our consultants will contact you in order to talk through your application. At this juncture we will discuss whether to choose bankruptcy or an IVA. We can also talk to you the IVA criteria.
3. If our case meets our standard criteria you will accept onto the Individual Voluntary Arrangement - IVA programme and referred to one our panel members.  At this juncture we will provide you with all the help and advice you need in order to start an IVA
4. The panel member will now act for you and will then contact all your creditors informing them that they are now your legal representative. At this juncture we can always answer questions on how an IVA works.
5. Based on the information provided by you an Individual Voluntary Arrangement - IVA proposal will be drafted, this is a written agreement which sets out the actual terms of the Individual Voluntary Arrangement - IVA.
6. In order to legally protect you from your creditors a form of legal protection called an "interim order" is granted. This is a process which enables full protection from your creditors.
7. Once the Interim Order is granted no legal action may be bought against you. Having an interim order means you are fully protected from creditors issuing or continuing bankruptcy proceedings.
8. The panel member then prepares a statement called a "Nominees Report" which portrays a professional opinion as to whether the Individual Voluntary Arrangement - IVA is a genuine offer.
9. Shortly afterwards a meeting of creditors is held. In theory this meeting consists of all the creditors gathered in a room to discuss the Individual Voluntary Arrangement - IVA. In practice, however, creditors rarely attend because all voting is done prior to the meeting.
10. Once the Individual Voluntary Arrangement - IVA is approved you are legally contracted to keep up your monthly Individual Voluntary Arrangement - IVA payments. Once accepted your creditors can never bother you again. This monthly payment will be easily affordable because it is based on your disposable income

Why use us to set up your IVA?

If you have debts over £15,000 than our Insolvency Practitioners can help you by proposing an IVA plan for you. Our Practitioners are industry regulated with many years experience in dealing with people like yourselves. We believe in providing honest, professional and reliable service. Fill out our online no obligation enquiry form to arrange a callback from one of our specialist Insolvency Practitioners. They will be happy to listen to you and devise a plan that is best suitable for your situation.