IVA The Process
Firstly your case will need to be assessed. From the assessment a plan letter will normally be sent to you. This will explain in detail the action that will be taken for you.
In most cases you will be asked to sign and return a copy back to the company that you are dealing with. Once the company has your signed consent they will then start to contact all of your creditors to tell them that proposals for an IVA are being prepared and ask them to confirm the amounts that you owe.
Your income and expenditure reports and a repayment plan will be put together again these will need to be signed by you to give consent to the company representing you. In some cases these will be sent to a county court for an interim order. The interim order will protect you from any further action from your creditors giving you a slight advantage.
In some cases the company representing you will then look to contact all of your creditors with all of these details and arrange a creditors meeting. Once 75% or more of your creditors have then agreed to the proposals within the IVA it is legally binding on all creditors including any creditors that may have not agreed.
After the meeting a report will be sent to all of your creditors and their agents giving the outcome and detailing the votes. Generally throughout the duration of the IVA a supervisor will oversee the whole process and arrangement for you. You will then pay one affordable monthly amount.
Annual reviews of your income and expenditure will be usually be undertaken and an annual report sent to you and your creditors. Providing you stick to the terms of your IVA, at the end of the arrangement your debts will be cleared completely.
