What Do I Need to Do to Set Up An IVA?

An Individual Voluntary Arrangement or IVA is an arrangement which is laid down by law to help you free yourself from the burden of debt without declaring bankruptcy and so losing your property and assets. It is a formal managed arrangement which is regulated by law and which you will have to be assisted with the aid of a professional adviser who will provide you with advice and recommendations as well as handle the paperwork.

The first step is for you to contact an adviser who handles IVA’s; they will be able to advise you whether an IVA is suitable or not and you should seek professional advice here as the law provides for many different options to help you. The IVA company will assess your financial information for which you will need to provide information which can be handled over the telephone or if you prefer, in a face-to-face meeting.

The IVA company will collect and organise the supporting evidence which will be required for the court to agree to the IVA process being used; supporting evidence will include your bills, income information and payslips, mortgage or rental payments, a valuation of your home if you own it, value of your car including make, model and year and proof of your own identification.

You will also need to provide details of who you owe money to including their names and addresses.

The IVA company will then apply to court for an interim order to stop your creditors from declaring you bankrupt; this will also direct any and all of their queries to your IVA professional and stop you from being harassed by collection agents and bailiffs. In fact, if a creditor wishes to take any action against you they must go to court and obtain the permission of the judge.

The IVA proposal will then be put before the creditors; the law requires 75% by value must accept the proposal and once you have cleared this hurdle, the court will then be asked to issue the order granting the IVA. Keep to the terms of this agreement and once the IVA has finished you will be free of debt.

While this is a simplified explanation of what you can expect from applying for an IVA, you must seek professional advice to first of all guide you in what debt management option is applicable to you and through the process. The sooner you take advice the better the outcome will be for you and your family.