An IVA is a legally binding debt solution that aims to protect the interests of both you (the debtor) and your creditors. Due to the nature of an IVA, there is a defined procedure that every IVA must follow. We have split this process into just 8 steps.
The IVA Process
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Step 1: Contact Refresh Insolvency
Contact the IVA team at Refresh Insolvency – by telephone, email or the ‘chat’ service.
Step 2: We carry out an initial fact find
We will review your circumstances and perform a credit check that will help us quickly assess all your debts and to who they are owed. This credit check will not affect your credit rating.
Step 3: Gathering the necessary information
We gather detailed information regarding your income and household expenses (utility bills, rent, groceries etc.) and calculate how much you can reasonably afford to pay back each month after household spending.
Step 4: Preparing your IVA proposal
The Insolvency Practitioner’s team will assist you in drafting an IVA proposal to present to your creditors. It will include a breakdown of your circumstances and your proposed monthly budget and repayment terms. Your proposal will explain why your debts cannot be paid and why your creditors should accept your IVA.
Step 5: Your creditors review your IVA proposal
Your Insolvency Practitioner sends the proposal with your agreement to all of the included creditors and invites them to take part in a creditors’ meeting. This meeting is ‘virtual’ and each of your creditors can vote on whether to accept your proposal. For the IVA to be agreed, there must be approval equal to 75% of the debt value of those who vote at the meeting. This also means that not all of your creditors need to vote or attend the meeting for the IVA to be accepted.
Step 6: IVA is Approved
On the date of the meeting of creditors where sufficient votes approve the proposal, you formally enter into your IVA and immediately become protected against all debt recovery action. This also becomes your anniversary date.
Step 7: Your IVA starts
You commence the agreed monthly payments and we take care of dealing with your creditors, your letters and calls and any help you need. We pay funds to creditors as per the terms of the IVA. The Insolvency Practitioner’s team will conduct a review each year on the anniversary date to ensure you can afford your payments. If your circumstances have improved, you may be requested to increase your IVA payments but any problems with the IVA budget will be dealt with quickly and professionally.
Step 8: Completion
You will arrive at the end of the IVA once you have made all required payments and performed any required obligations as per the terms of your IVA proposal. Any balances remaining on the included debts will be written off at the end of your IVA term. You will then be free of these debts and back in control of your financial future.