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If you have decided - after seeking the necessary
advice - that an IVA is the best way to deal with your
debts, you may wish to learn how the process works.
Here we describe what is involved in setting up a
voluntary arrangement. We strongly recommend that you
receive advice from a regulated solicitor or insolvency
practitioner before proceeding with an IVA
Click here for more on
bankruptcy and IVA's generally.
In most cases the Debtor (the person with debts)
drafts a proposal that specifies how the debts will be
paid and what amounts will be involved.
Advice should be sought on how to construct a
proposal and you will need to instruct a Nominee to deal
with the supervision of the IVA.
Speak to a regulated solicitor who will then
instruct a licensed Insolvency Practitioner (IP) to
manage the arrangement.
If Bankruptcy proceedings are underway, an Interim
Order will be required to preclude creditors (those to
whom money is owed) from taking further action.
Agreement
The debtor must circulate to creditors (via the
Nominee)
The Nominee's comments on the debtor's proposals
The Proposals
Notice of the date and location of the meeting of
creditors who must vote on the proposals
A Statement of Affairs which consists of a list of
the assets and liabilities of the Debtor
A schedule advising creditors of the requisite
majority required to approve the IVA
A complete list
of creditors
A guide to the fees charged by the Supervisor
following approval of the IVA
A form of proxy for voting purposes
The creditors meeting is necessary to agree or reject
the Debtor's proposals.
Acceptance of the proposals usually requires a 75%
proportion of the creditors to consent.
Upon approval of the IVA, a Supervisor is appointed
(usually the Nominee) to ensure the proposals are
adhered to and to distribute the dividends to creditors.
Upon completion of the IVA and assuming full
compliance, the debtor will be fully discharged from all
liabilities (debts) included within it.
The Debt Connection - UK Insolvency Solicitors -
Bankruptcy and IVA specialists. Offering advice
Nationwide - London, Birmingham, Manchester, Leeds,
Newcastle, Nottingham, Bristol, Cardiff, Leicester,
Bradford and many more locations
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