How does IVA work?

Once our IVA specialist has reviewed your financial position a decision will be made as to the most appropriate course of action to take, and the likelihood of creditors' agreeing to such a plan.

If it is decided that an IVA is your best option than our IVA specialist will then put together a manageable repayment plan in a Proposal. This will then be submitted to Court for approval and further be tabled to the creditors for consideration, who may request amendments if they are dissatisfied with the proposal in its current form. Repayments have to be affordable and allow you to live off the remaining income; otherwise the IVA will inevitably fail which is not in the interest of either party.

The Court will issue an Interim Order upon approval of the Proposal. During the period in which the Interim Order is valid, no one may commence legal action against you for recovery of debt.

In a creditors' meeting, creditors will consider the proposal further and vote on their acceptance of it. Attendance is in no way mandatory for creditors and so written voting submission will also be included.

If creditors, making up 75% of your debt agree to support the proposal then the proposed Nominee will submit a report together with the minutes of the Creditors' Meeting to the court. If no challenge, the Proposed Nominee will become overseer of the IVA, to ensure that the obligations under it are carried out.

During the repayment period, the Nominee will receive all repayments under the IVA and distribute them accordingly to creditors.

Once the term of the IVA has been reached, with all obligations performed by the parties, you free of all obligations connected with the previous debt. In other words debt free!