The stages of an IVA explained...

We receive a lot of calls and emails from the public asking the IVA team to explain the; "IVA stages?”

IVA stages?

Please note that a member of the IVA unit will take you through the IVA stages. The IVA stages can be moved forwarded as quickly as you provide the relevant information.

1. The first of all the IVA stages is the person completes and returns a standard application form together with copies of all recent debt statements.
2. On receipt of your questionnaire one of the IVA consultants will contact you in order to talk through your application. At this juncture we will discuss whether to choose bankruptcy, debt management or an IVA. We can also talk to you the IVA criteria.
3. If our case meets the IVA criteria you will be accepted onto the Individual Voluntary Arrangement - IVA programme and referred to one the Licensed Insolvency Practitioners (IP).  At this juncture we will provide you with all the help and advice you need in order to start an IVA
4. The next IVA stage is for the IP then contact the creditors informing them that they are now your legal representative. At this juncture we can always answer questions on how does an IVA work.
5. Based on the information provided by you an Individual Voluntary Arrangement - IVA proposal will be drafted , this is a written agreement which sets out the actual terms of the Individual Voluntary Arrangement - IVA.
6. In order to legally protect you from your creditors a form of legal protection called an "interim order" is granted. This is a process which enables full protection from your creditors.
7. Once the Interim Order is granted no legal action may be bought against you. Having an interim order means you are fully protected from creditors issuing or continuing bankruptcy proceedings.
8. The panel member then prepares a statement called a "Nominees Report" which portrays a professional opinion as to whether the Individual Voluntary Arrangement - IVA is a bonafide offer.
9. Shortly afterwards a meeting of creditors is held. In theory this meeting consists of all the creditors gathered in a room to discuss the Individual Voluntary Arrangement - IVA. In practice, however, creditors rarely attend because all voting is done prior to the meeting.
10. Once the Individual Voluntary Arrangement - IVA is approved you are legally contracted to keep up your monthly Individual Voluntary Arrangement - IVA payments. Once accepted your creditors can never bother you again. This monthly payment will be easily affordable because it is based on your disposable income.

Please note that the above are the typical stages you can expect to experience when entering into an IVA. Please note that the total IVA stages generally take up to 60 days before they go live.

If you wish to discuss the Individual Voluntary Arrangement (IVA) procedure and understand how it can help you please call freephone 0800 074 6918.