How Does an IVA Work?
IVA's - What to Expect
How Does an IVA Work?Understanding how your IVA is going to work is very important in order for it to be successful and allow you to become debt free in the future.
The following information is a brief summary of the key processes involved in setting up and maintaining an IVA. For further details please call us now on 08000 43 43 41 or complete our IVA Wizard and see if you qualify for an IVA.
- Once you’ve discussed your situation with one of our professional debt advisors and you’ve decided an IVA is right for you, we’ll then pass your details to one of our Licensed Insolvency Practitioners (IP’s)
- The IP will then put together a formal proposal for your creditors which will detail your level of debt and how much of it you can afford to pay off based on the agreed monthly contribution you’ve discussed
- This proposal will then be circulated to all of your creditors for their approval
- At a formal creditor’s meeting (none of your creditors may actually attend) your proposal will need to be accepted in person or in writing by at least 75% of voting creditors in order for your IVA to be legally binding
- An IP will then be formally appointed as the person to look after your IVA and will monitor your monthly payments and arrange the release of any equity in your home or other assets such as your vehicle if applicable
- You are responsible for making your agreed monthly payment and maintaining this for the entire duration of your IVA. Failure to do so may result in bankruptcy proceedings being issued against you
- At the end of the agreed period of your IVA (usually 5 years) and providing you have made all of your payments, your IP will confirm that you have successfully complied with the terms of your IVA and advise you that any remaining debt will now be written off, leaving you debt free
