The IVA process

Typical Steps and Timescale for IVA process

Once you have spoken to a number of IPs and decided that an IVA is right for you, you will then need to begin the process of putting your IVA together so that creditors may consider and vote on your proposal. The IVA process from drafting the proposal to holding the meeting of creditors usually takes between 4 – 6 weeks as follows:

Step 1: With the assistance of the adviser from the IVA company you have chosen to represent you, you will review your financial situation. The advisor will work out how much you are reasonably able to offer your creditors each month and whether creditors are likely to accept the IVA (to find out if an IVA is the right thing for you, please contact us on 0800 88 18 274). If you and the advisor agree that an IVA is the best option for you, the adviser will draft a proposal and a statement of affairs. Your IP should have explained other options available to you at this point, such as bankruptcy. Make sure you properly consider the alternatives before you make your choice.
Step 2: The proposal is a formal document to be given to all your creditors for their consideration. It covers details of all your debts and relevant background information about your situation. It is your proposal so before you agree and sign this document, make sure you have read it thoroughly and are happy with it. Discuss any queries you have or changes you would like to make with the Insolvency Practitioner.

Statement of Affairs

The Statement of Affairs records all of your financial details and forms the basis of your IVA proposal. The Statement of Affairs contains details of who your creditors are and how much you owe them, any Assets of value, your monthly income and expenditure, and your disposable income.

Step 3: Your creditors will be sent a copy of your proposal for consideration prior to the meeting. They may accept your proposal with or without modification. If a modification is requested by a creditor, your IP will contact you to discuss it.
Step 4: A meeting of your creditors is then held. Creditors do not normally attend meetings in person and will convey their acceptance or rejection of the proposal in writing. As long as 75% of the value of the creditors in attendance at the meeting accept, then the proposal is approved and becomes legally binding on all parties concerned.
Step 5: The Insolvency Practitioner informs the court and all creditors of the outcome of the meeting and the IP is normally appointed as the supervisor of the newly approved arrangement. He or she will monitor the monthly contributions, approve creditor claims, distribute funds to creditors, carry out regular reviews of your income, and prepare annual and final reports to the court, the creditors and yourself.
Step 6: You should maintain your monthly income payments into the IVA for the agreed length of time. You may wish to join our IVA forum to share your experiences with others or ask questions.
Step 7: Once the terms of your arrangement have been fulfilled, you will be free from your debts. Any outstanding balance will be written off. The Insolvency Practitioner will give you a "Statement of Completion" within 3 months of your final payment. A further copy of this will be sent to the Insolvency Service for their records.

The typical timescale for agreeing an IVA with creditors is as follows:

Task timescale	Event	Cumulative days
0	Initial contact.	0
1	Letters sent to client summarising recent conversation and advising of the options to tackle the debt.	1
2	Draft IVA proposal issued to client. Further information may be required from the client.	3
1	Draft returned by client and the proposal is updated to reflect any additional information provided. The proposal is formally “served” on the Nominee.	4
7	Nominee’s Report filed at Court.* The nominee prepares a report and comments on the likely success of the proposal and states the date, time and place for the creditors’ meeting. Assuming all client evidence is received by return of post or email.	11
1	Notice of the meeting is issued to all creditors with a copy of the proposal, statement of affairs and voting form, known as a proxy.	12
17	Creditors’ meeting held. Meeting cannot take place more than 28 days after the lodging of Nominee’s Report. It may be adjourned up to a maximum of 14 days from the date of the original meeting.	29
	If 75% of Creditors in attendance (by total of debt) agree, then you have your IVA

*Assuming no Interim Order

Please note: This is the minimum number of days usually taken by an IP to process the paperwork and/or the timescales dictated by the Court and Insolvency Act 1986. No allowance has been made for the length of time it takes a client to return paperwork or file paperwork at Court, as this can vary significantly.

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