How is an IVA arranged?

Initially, we will help you to prepare a Financial Statement. In preparing your statement, we will identify your total debts and help prioritise those requiring immediate attention. We will also help calculate what you can afford to pay to your creditors each month, based on your income and expenditure.

We will then help draft your IVA proposal; this is effectively the offer you wish to make to your creditors. The IVA proposal needs to be set out in a specified format. It will confirm your proposed monthly payment and the exact terms of the IVA. Once finalised, it will need to be signed by you, before we circulate it to your creditors.

The proposal will confirm the date of your Creditors Meeting, this will usually be around 3-weeks after the proposal is signed. Each creditor will be asked to submit a vote either ‘for’ or ‘against’ the proposed offer. At the time of the Creditors Meeting, the votes will be counted and if 75% of your creditors (in debt value) are in favour of the IVA, your agreement becomes legally binding on all creditors, whether they voted in favour or not.

Should the IVA be approved by creditors, our role will change from ‘Nominee’ to ‘Supervisor’ of the arrangement. From that point forward, we are responsible for making sure you stick to the terms of the offer you have made.