We have already looked at the first phase which involves planning and decision making. Having determined that you are indeed insolvent and having taken advice from various sources of expertise you have now decided to proceed with an IVA. You have chosen an insolvency firm to work with in the second phase which is the preparation of your IVA proposal. Your chosen insolvency firm has verified that you are insolvent and has already explained all your options to you. You will now need to furnish documentation in regard to your debts and assets, your income and expenditure and full details of your personal and financial circumstances, particularly as to how your debts were incurred. It should not be too difficult to do this provided you co-operate fully with your Insolvency Practitioner (IP) and the case manager who may be assigned to your case.
You will need to supply current pay-slips, creditor statements and correspondence, mortgage and HP statements, valuations of your house and car and full details of your household living circumstances including those of your spouse or partner and of your dependent. You will usually have a number of phone conversations with your IP or case manager whom you will authorise in writing to communicate with your creditors on your behalf. If necessary you may be required to meet with your IP face to face.
Your IP will then prepare your proposal for an IVA and send it to you to verify and sign off.
You will return the signed proposal to your IP who will then choose a suitable date and venue for a meeting of your creditors and will notify your creditors accordingly.
At this point your work is done. Provided you have co-operated fully and truthfully with your IP you simply sit back and wait for the third phase to commence, i.e. the Meeting of Creditors which we will look at in the next article.