16 Aug 2007 Tell a Friend
If they are agreeable (75 percent of creditors, by value of debts, will have to approve) you may have to negotiate the final terms of the IVA. Your insolvency practitioner will act as a chairman in these meetings. IVA proposals are rarely accepted straight off and creditors usually seek to impose a number of conditions. These commonly include a minimum return, an increased return if your income increases, a restriction preventing you from acquiring more credit, and the cessation of the IVA if you miss a certain amount of repayments.
Approval of an IVA
Once the IVA proposal has been approved by creditors, you are almost there. You will have to pay the agreed amount into a fund each month. This money will be divided proportionately among your creditors, and the fund will be supervised by your insolvency practitioner.You may have to respond to requests from your practitioner during the term of the IVA. The practitioner will make an annual report to creditors and the court. The supervisor must also ensure that you're keeping up with repayments, and they may occasionally ask to examine bank statements, wage slips, etc.
After this, it is up to you to keep up with monthly repayments. If you do so, then no more interest should be charged and all debt will be written off at the end of the five year term.
Getting an IVA is certainly regarded as one of the more complex debt help solutions but its long term benefits can be significant. In many ways it provides a much more agreeable alternative to bankruptcy and can result in as much as 75 percent being written off your debt, depending on your circumstances.
If you would like assistance finding an IVA specialist to speak with, take a moment to fill out this short debt form, and we will contact you shortly to introduce you to a qualified IVA adviser from the SimplyFinance network.