The IVA is usually prepared under the supervision of a licensed Insolvency Practitioner
and, once in place, it has the force of law. The good thing about an IVA is that it stops your
creditors from harassing you and it enables you to have a great deal more control over your
assets and how they are dealt with than you would by declaring yourself bankrupt.

If you find that you are heavily in debt and cannot meet your repayments to creditors then
an IVA may be the best plan of action for you.

We can appoint a Licensed Insolvency Practitioner who will act on your behalf with all correspondence from your creditors. The insolvency practitioner, with your help, will then
produce a written proposal. This will then be sent to your creditors in accordance to a pre-determined creditors meeting, usually held at the Insolvency Practitioners offices in the
absence of both yourself and the creditor.

The IVA Proposal
The IVA proposal will include details of your income and expenditure, a list of your creditors
names and addresses, amounts due to your creditors and a detailed history of your credit
problems, including your past and present circumstances. Your IVA proposal will include a statement of affairs; this will provide you with what you are looking to offer your creditors
and over what time period. As soon as your proposal has been finalised your Insolvency
Practitioner, may apply to your local County Court for an Interim Order. This will provide
you with valuable protection against CCJ's, Attachment Orders and even Bankruptcy Orders.

All of your un-secured creditors will be bound by the IVA, provided that more than 75%
(by volume) of the unsecured creditors agree to the proposal. As soon as your proposal
has been approved all interest will stop on the debt that you owe.

After the creditors meeting, your Insolvency Practitioner will take on the role of supervisor
of the IVA. Your Insolvency Practitioner will review your income and expenditure on a
regular basis, so that any change in your circumstances can be reported to your creditors.
Similarly if you report to your Insolvency Practitioner a change in circumstances,
for example a job loss or a reduction of income then your supervisor will be sympathetic
and will be able to advise you on any action to be taken.

Your creditors are bound by the IVA and must not hassle you in any way outside of
your IVA. Your creditors cannot petition for your bankruptcy in relation to your debts
included in your agreement. However, if you default on making payments in accordance
with the agreement, your Insolvency Practitioner is obliged to petition for your bankruptcy.
So, if your debts are serious enough to go the IVA route, you need to follow it through properly.