If you’re considering trying to use an Individual Voluntary Arrangement, there are a number of things that will happen initially. You will need to consult an Insolvency Practitioner, who will advise you, and who will be responsible for taking the IVA forward.
The first thing that the IP will need to do is have a good look at your finances. They will need to get a sound impression of your overall situation, including income, outgoings, debts and assets. On the basis of this they will advise you as to your options, only one of which as an IVA.
If you do go ahead with an IVA, it’s imperative that you make sure your IP has the details of all of your debts. The IVA will cover personal unsecured debts that you have, and it’s best if they’re all included, to give you the best chance of getting things under control.
You will need to provide various documents and details relating to your finances. Your IP will make sure you understand what’s required, but below is a list of things that are typically going to be needed.
Income
Proof of your income, and your spouse/ partner if applicable, will be required for the IVA proposal. You will need to be able to demonstrate that you can afford to make the monthly IVA payments, and so your income will be examined. Generally payslips are used for this purpose.
Property
Details of any mortgaged or owned properties that you may have will also be required. This includes both your home and car. If your home is mortgaged, the details of your mortgage will be required, including a mortgage statement indicating the amount that is outstanding. A relevant valuation for your home may be required. If your car has been financed through a loan that has not yet been paid off, or a hire purchase, details of this will also be necessary.
Endowments
You should provide details of any endowment policies that you may have.
Debts
You will need to ensure that you have valid details for each of your creditors, and provide information regarding your accounts with each. This information needs to include what you owe and the creditor’s reference number for you. If you have had any solicitor’s letters regarding the debts, include these also but make sure you include the creditor’s own correspondence as well.
Explanations
Your IP will also want to know the details of the circumstances that have led to your current difficulties. If there have been events in your life that have put strain on your finances, this may make creditors more inclined to accept your IVA proposal, so be sure to include these where possible.