IVAs typically don’t take too long to set up, and are generally up and running within a few weeks. Your Insolvency Practitioner (IP) will guide you through the process, and make sure you understand what is going to happen at each stage.
As soon as your IP has established that you are going to explore using an IVA, they will apply through the courts for an Interim Order. This means that you do not need to worry about what is going to happen with your debts while the IVA is being set up, as it freezes any action on the debts for the time being. The Interim Order prevents your creditors from taking any legal action against you while the IVA is being worked out and proposed.
This period gives you a bit of breathing space and allows you to take the time to work out an effective proposal along with your IP. At this stage your IP will get a thorough understanding of your overall financial situation, and will advise you as to what you should propose. They will then draw up the proposal and put it to your creditors. The proposal will be designed to be manageable for you to keep to.
Once the proposal has been put to the creditors, they get to vote as to whether to accept the IVA or not. Sometimes they may ask for amendments to be made, and there may be a small amount of negotiation that goes on. Your IP will handle all of the negotiations for you and the process tends to be a prompt one. The creditors won’t spend much time deliberating, and you will know quickly whether or not they have accepted your IVA.
When an IVA plan that is acceptable to both you and your creditors has been agreed on, your IP will then take the necessary steps to actually set the IVA up. Shortly after this you will be making your IVA payments and working towards clearing the debts without the anxiety of feeling threatened by legal action or indeed bankruptcy.
To explore any of the above please contact us at National Debt Relief.
National Debt Relief belongs to a firm of leading chartered accountants who are one of the largest insolvency practices in the UK. We offer a complete portfolio of personal insolvency services in relation to IVA, Debt Management Plan and Bankruptcy. All our debt advice is confidential and with no obligation.