IVA (Individual Voluntary Arrangement) is an act of arrangement of debt repayment. The process of IVA procedure is worked out between a debtor and his creditors concerned. Under the procedure, an organised monthly repayment scheme is chalked out under the supervision of an Insolvency Practitioner. The Insolvency Practitioner plays a leading role dealing with debtors' disastrous debts.
As assessing debtor's financial condition, a plan is delivered to the debtor. This explains the IVA procedure and its course of action. Debtors are asked to sign and returned with a copy of paper before they proceed to the IVA procedure. After getting the debtor's consent, all the concerned creditors are contacted thereafter to tell them that the IVA proposal are being prepared and ask them to confirm the amount debtor owed.
Further, a set of proposal is designed out for IVA procedure. The proposal of the procedure includes the debtor's income and expenditure, creditor's details, a fable of how the debt the debts built up and a proposal for the repayment. Later, a request for Interim Order to the concerned court is made. This order protects debtor from any further court action.
All the concerned creditors are sent each set the proposal of the IVA procedure applied. Along with, the stipulated venue and time of a meeting of creditors is charted out and informed to. This meeting is obligatory to be attended by all i.e., a debtor and creditors. After meeting, again the report is sent to all the creditors.
Importantly, entire of the IVA procedure is supervised under a supervisor. The supervisor takes stock of the IVA procedure time to time.
However, IVA procedure is an important financial arrangement which helps abolition of debts. There are many commercial building and high street lenders going in for offering this process. With the advent of accessing online, the availing IVA procedure has taken up a good speed altogether. A simple application form of IVA procedure and all the way to your debt solution is made ready to the other day.
Followings are some of the salient features of IVA procedure:
* An individual can put together a plan of action and payment for their creditors to vote upon.
* A bankruptcy order can be cancelled if a voluntary arrangement has been approved
* Individual voluntary arrangements remain on the public register for two years after the date of either completion or termination of the arrangement.
* The debtor must have 75%, of those creditors who vote for an individual voluntary arrangement to get it approved.
* If the individual voluntary arrangement fails then the creditors can apply for the bankruptcy of the individual.
