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Debt Solutions
IVA Information
Starting an IVA.
In order to be in a position to propose an IVA it will be necessary to show that you comply with certain criteria that creditors have shown over the years they will expect to see before they consider accepting an IVA proposal.
These are: -
- You must have debt that you owe in the UK.
- You need to be living in England and Wales
- You need to be insolvent
- You need to have unsecured debts and liabilities in excess of £15,000
- You need to be able to make payments of at least £200 per month
- You will need to be able to be able to repay at least 25% of your debt back after 60 months
- You will need to be able to make regular repayments and show that these can be made over an extended period of time.
Short form Procedure for the IVA
Firstly you will need to complete the online application form which you can find on this link. This will be sent to us electronically where it will be evaluated by one of our agents. We will call you upon receipt to discuss with you whether you qualify for an IVA, and indeed whether it is your best or only option. If we consider that either you do not qualify for an IVA or that there is a better debt solution for you this will be explained. We may advise you that the better or more appropriate options would be bankruptcy or debt management. If we conclude that these are better options we will explain in detail how these may assist you.
If you are accepted then a member of our IVA panel will contact you to take further details and begin the process of drafting the IVA proposal. When the proposal is drafted and this can take up to two weeks, depending on the complexity of the finances, it is then approved by the IP, who will send it and his Nominees Report to the local county court, asking for a court number.
The paperwork is then returned to the IP who will send it out to the creditors with notice of the hearing date and the documents needed to vote at the meeting. The meeting will usually take place about 21 days after the court has received the proposal.
The meeting takes place at the IP’s office. Usually no creditors attend and no debtor comes. The IP’s team will collect in the votes on the proposal which are sent in by email or fax, and see if the requisite majority have voted in favour of the proposal. 75% of those voting must vote in favour. The proposal may be approved or rejected at the initial meeting. The meeting process itself may be adjourned by up to 2 weeks to enable negotiations to take place if the creditors require further explanation or more money.
If the IVA is approved it passes on to a further team within the IP’s company who supervise the arrangement for the 60 or 72 months of it’s duration.
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