Chartered Accountant
Licensed Insolvency Practitioner

41 Kingston Street, Cambridge CB1 2NU
Tel: 0800 1953605 (Free call) or 01223 367022
Fax: 0844 5048737


OK I'm considering an IVA.  How does it work ?

The Insolvency Practitioner will first interview you to ascertain your assets and liabilities, what you can afford to put into the IVA and how you came to get into your current situation.

He (or she) may or may not, depending on whether creditors are taking any legal action against you, obtain a Court order suspending such action while the IVA proposal is being considered.

Once he has all the necessary information he will prepare the proposal which is your intended repayment contract with your creditors, and agree this document with you before sending it out.  At the point that you agree to it, he then has a duty to report to the Court as to whether the IVA should be put before the creditors at a meeting.  Although technically this is an important duty, in practice he would never have drafted a proposal which in his opinion was not worth putting before the creditors.

The creditors will all be sent a copy of the proposal a few weeks before the meeting and they will then consider whether to vote in favour of it.

At the meeting, if creditors attend, modifications to the proposal could be put forward and considered. Otherwise the votes in favour and the votes against will be counted to see whether the required majority for approval has been obtained.

If insufficient votes in favour have been received, the meeting can be adjourned for up to 2 weeks while the Insolvency Practitioner negotiates further with creditors to attempt to secure support.

Once a final decision has been reached the practitioner reports to the Court, the debtor and the creditors on the outcome.  If the arrangement is approved, then the debtor and all creditors are bound by it and it commences.  The IP's role now changes from one of helping you put a fair proposal to the creditors to one of ensuring that you comply with your obligations and that the arrangement runs in accordance with its terms.

While the IVA is running, the debtor must make the agreed monthly payments to the practitioner (now called the Supervisor of the IVA), who once a year will report to everyone and pay a dividend to the creditors.

At the end, if the IVA concludes successfully, the Supervisor sends out his final report and dividend. He then files a certificate of compliance certifying the successful completion of the arrangement.

Philip Beck is a Chartered Accountant and Licensed Insolvency Practitioner operating since 1996 with substantial experience in undertaking IVAs.

No approval, no fee IVA, click here for details.  Pay nothing until creditors approve your IVA proposal.

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IVA Questions and answers.

I have serious debt problems. What are the options ?

How do I know whether an Individual Voluntary Arrangement (IVA) is the best answer to my problems ?

How do I work out how much I can afford to pay per month ?

OK I'm considering an IVA . How does it work ?

Do I have to attend meetings, or can this all be done by correspondence ?

What do creditors expect from it and how likely is it they'll accept it ?

Are all of them forced to accept the majority decision ? I've got one hell bent on making me bankrupt.

What happens if they don't like the deal ?

If the IVA is rejected, do I owe you anything ?

I've buried my head in the sand, now I've got a bankruptcy petition hearing next week. Is there something that can be done at this late stage ?

Will it really write off all of my debts ?

Will I live in poverty for the duration of the IVA ?

What if I win the lottery or get a big pay rise ?

Will it appear in the newspapers ? Will people know about it ? Will I ever be able to get credit again ?

Is an IVA more expensive than just going bankrupt ?

What will happen to my house, furniture, car and domestic effects ?

I run a business. What will happen to my business ?

I'm a professionally qualified person. Will I lose my livelihood ?

My partner has no debts, and I'm living with him/her. Will he/she have to contribute to the IVA ?

My partner and I have joint debts. Can we lump them all together in the same IVA ?

How do you get paid ? What does this all cost ?

There are plenty of Insolvency Practitioners or debt advice companies around. Why should I instruct you ?

What happens if I'm unable to keep up with the payments ?

What happens at the end of the arrangement ?

What other web sites do you suggest I look at for bankruptcy/IVA advice ?

Please note that this site deals only with personal insolvency law in England, Wales and Northern Ireland. By law, only a Licensed Insolvency Practitioner can undertake an IVA for you. If you need an Insolvency Practitioner in Scotland, visit The Institute of Chartered Accountants of Scotland.   Interested in members voluntary liquidation ?

Copyright © Philip Beck Insolvency Practitioner, Cambridge UK, 2005. Bankruptcy and individual voluntary arrangements explained. Free IVA Advice. How to avoid bankruptcy with an Individual Voluntary Arrangement. Debt, debt advice, debt management, debt consolidation.