The IVA Process
An IVA is a formal agreement between you and your creditors and is arranged through a licensed professional called an Insolvency Practitioner or IP.
How it works
- Once it has been established that you meet the criteria required to enter into an IVA, you will be asked questions regarding your current financial situation.
- Based on your circumstances a monthly repayment amount will be agreed with you and you will be forwarded documents to check and return to your IP.
- An Interim Order may be arranged with the court. Once in place your creditors will no longer be able to take action against you.
- Your IP will call a creditors meeting. For the IVA to be approved 75% of the creditors who vote must accept the IVA proposal. If a creditor does not vote they are assumed to have voted for the IVA.
- The Individual Voluntary Arrangement is legally binding on both you and your creditors. Provided you make your payments throughout the duration of the IVA, at the end of the term you will be free from these debts.
Creditor
Someone you owe money to.
Unsecured lending
Total loan & credit card debts excluding your mortgage and any hire purchase.
Country
The country you currently live in.
Insolvency Practitioners
Also known as an IP, a person who specialises in formal insolvency cases.
Valuations
The process of determing the current value of an asset.
Equity
The difference between the market value of a property and the claims held against it.
Lender
Someone you owe money to.
Eviction Order
A court order by which a person may be evicted.
Arrears
An unpaid and overdue debt.
Disposable Income
The amount of income left to an individual after taxes have been paid, available for spending and saving.
Statement of Affairs
A financial report showing assets and liabilities at expected liquidation values and shareholders' equity.
Insolvent
Unable to meet debt obligations.
Secured Loan
Money borrowed using goods or property as a guarantee.