When you make initial contact with us – we’ll need to ask you about your debts, personal finances and about your incomings and outgoings. Only if we consider an IVA is likey to be accepted in your cirumstances, would we advise a formal proposal.
- Once we’ve accpeted your case, you will need to complete and return a questionnaire which give one of our teams of Insolvency Practitioners the information required to prepare the IVA Proposal.
- You will need to sign a formal letter of instruction, and a letter authorising us to contact your creditors. This will hopefully ensure that the creditors stop contacting you and will contact your IP instead. This will naturally reduce any stress and pressure from you.
- A draft Proposal will be prepared based on the information you have been provided, and will be sent to you for approval. You may be asked to provide further details in respect of any information that may still be outstanding or missing.
- The draft Proposal is returned to the IP by you with any alterations and missing information required. The IVA Proposal will then be updated and sent out to you for final approval.
- You will need to sign the Proposal and return it to the IP upon which he will then formally agree to become your Nominee.
- The IP is then required to make out a report and to comment on your offer to creditors and will then lodge both his report and your IVA Proposal in court. This is a mere formality, and you will not be required to attend court unless there are exceptional circumstances. If there are such circumstances, you will be advised of this at the outset of your case.
- A Meeting of Creditors will be convened and your IVA Proposal together with the Nominee’s Report will be sent to all creditors to consider. You do not have to attend the Meeting of Creditors.
- On the date of the Meeting of Creditors, the Creditors vote on whether they are willing or unwilling to accept your offer and if 75% by value of those Creditors voting, agree to accept your offer, then the IVA will become approved. The Arrangement will be binding on all Creditors at that stage, whether they voted or not.
- If necessary the Meeting of Creditors can be adjourned for up to 14 days to consider any revised offers, if applicable.
What is the Time Frame of Setting Up an IVA?
The time stated in the table is the maximum number of days that is usually taken by our insolvency practitioners to process the paperwork and the timescale’s dictated by the Court and Insolvency Act 1986.
No allowance has been made for the length of time that it takes a client to return paperwork or file paperwork at Court, as this varies significantly from client to client.