Individual Voluntary Arrangement

How does IVA work?

In IVA there are three parties involved and they are,

• Debtor (You)
• Creditor (People you owe money to)
• Nominee (Your Insolvency Practitioner)

Legal terms,

• Interim Order (An order to the creditors not to take any actions until a meeting between the two parties has been arranged)
• Proposal (A proposed payment plan)
• Statement of Affairs (A list of your assets and liabilities)

The nominee or your Insolvency Practitioner of this process will draw up a proposal to be presented to the court in order to get an Interim Order. Once the Interim Order has been acquired, it will be circulated to the creditors along with the following information.

• Insolvency Practitioner's comments on your proposal
• The proposal itself
• A notice of the meeting date in order to get votes on the proposal from the creditors
• A list of all your assets and liabilities, also called the Statement of Affairs
• A list of creditors
• A guide to the fees charged by the Nominee

The meeting of creditors is held within 14 working days of the circular being sent out. The purpose of this meeting is to give the creditors a chance to vote on whether they want to accept or reject the debtor's proposal; or whether they want to make any amendments to the proposal.

On acceptance of the proposal a supervisor will be appointed to the arrangement, this is usually the nominee. The supervisors role will be ensure the proposal is being adhered to and that payments are distributed to the creditors as agreed. Once both parties agree to the terms and agreements of the arrangements, the debtor is usually discharged from all liabilities included within it.

Please be advised that this documentation is for information purpose only and is not legal advise