What is the process of setting up an IVA?

Usually the IVA takes four to six weeks to set up as there are several stages to setting up the program. The speed also depends on how quickly the individual can provide certain information like pay slips and bank account statements.

The nominee process

At this stage the IP (Insolvency Practitioner) puts together a proposal for the IVA. This will involve either a face to face or a telephone interview to find out your situation.

The IP will gather information about:

• Your background
• Creditors
• Your household
• Your monthly income
• Your assets
• Your monthly expenditure

The information collected ensures a fair deal is stuck by both yourself and your creditors. It makes certain you can live comfortably and afford the payments for five years. It also assures you creditors the amount you are paying is the full amount you can afford.

Who can apply?

You can make an application as an individual or as a couple. You do not have to be married to apply as a household couple.

There are variations on the manner in which you pay your IVA including:

• Monthly payments for 60months
• A lump sum payment which normally comes from a remortgage
• A lump sum plus monthly payments

Approving the IVA

The IVA proposal needs to be signed by you, your IP and your creditors to make sure everyone is comfortable with the arrangements. The proposal and the evidence of your debt is presented to your creditors. The creditors are given a minimum of two to three weeks to review and respond to the proposal.
75% of creditors by debt value must agree to accept your proposal for the Arrangement to be accepted.

Get Online Advice from the Best Just Complete our Debt Advice Form Now!