There are a number of steps that have to be taken to start an IVA. You cannot do these on your own. You will need professional assistance.
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- Complete your statement of affairs
- Insolvency Practitioner writes your IVA proposal
- IVA agreed at a creditor’s meeting
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How to start an Individual Voluntary Arrangement
You need professional help to start an IVA. Who is the Insolvency Practitioner and what do they do? Do your creditors have to accept your IVA proposal? When do your IVA payments start? To find out more go to: http://beatmydebt.com/individual-voluntary-arrangement/how-to-start-individual-voluntary-arrangement
Complete your Statement of Affairs
Before you start an IVA (Individual Voluntary Arrangement) you have to complete a Statement of Affairs. This is a summary of your personal financial situation.
The statement will include key information about your debts, income, living expenditures and the assets you own (particularly your home unless you are renting and car). It must be complete and accurate.
The information you provide will be used to assess the amount you will pay into the Arrangement each month. It will also help you understand the impact on assets such as your property.
Want help with completing your statement of affairs? Give us a call or complete the form below.
Insolvency Practitioner completes your IVA Proposal
Once your Statement of Affairs is complete a professionally licensed personal called an Insolvency Practitioner (IP) will need to review it.
They will ensure you meet the criteria required for an IVA and draft an IVA proposal on your behalf. This includes your financial information, details how much you are proposing to pay into the Arrangement and all the terms and conditions.
Once drafted your proposal is sent to you for review. You should read it carefully including the terms and conditions. Make sure you completely understand the implications it will have for you. Once you are happy you sign and return the document.
Before your IP is able to finalise your IVA Proposal you will need to provide various documentation. This is to prove the information you provided about your circumstances is correct.
IVA Agreed at a Creditor’s Meeting
Your creditors must be allowed to review your IVA proposal. Your IP will send a copy to each of them and they are then given around 2 weeks to consider it.
At the end of this time there is a creditor’s meeting. Traditionally this is a face to face meeting where they get around a table to discuss the proposal. However they will not normally attend. They usually just send a letter or e-mail to your IP to register their acceptance.
Your Proposal will be agreed as long as 75% of the value of the creditors who vote say yes. It is then legally binding on all of them (even the ones that said no). From this moment they are no longer able to take further action against you. You then begin making the payments as agreed.
Your creditors can request changes to your proposal known as modifications before they agree it. Your IP will discuss these with you. If you agree your IVA will be accepted with these changes. If you disagree you can make a counter offer or cancel your IVA application.
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