Debtors can find out if they qualify for an IVA or not from many places; probably the most convenient place is the internet. After the debtor had found out that he is qualified for an IVA, the next step is to call an Insolvency Practitioner (IP), who will handle all the following details until the agreement is signed by the creditors. After contacting an Insolvency Practitioner the debtor will have to provide him enough information about his financial status. This means that the debtor must know his exact monthly income, his expenses and of course, all the details about the owed money. After the Insolvency Practitioner studies the case, he will discuss a very important thing with the debtor: how much money can he pay to the creditors monthly. Now it is time to talk about the agreement itself.

The insolvency practitioner will come up with a payment play, based on all the documents and details provided by the debtor. The debts are settled for a reasonable time, the interest and other debt charges will be frozen, so the total amount of the debt can be reduced by 40 to 60 %, this percentage varies from case to case. If the debtor agrees with the facts stipulated in the agreement, the Insolvency Practitioner arranges a meeting will all the creditors. Usually the debtor does not have to be present on the meeting. It is important that all creditors must be announced about the exact date of the meeting, otherwise the IVA might not be valid. During the meeting the Insolvency Practitioner will present the details of the agreement to the creditors, and they can accept or decline the agreement. It is important that not all the creditors have to accept the agreement! The number of the creditors is not important, the money value is important in this case. Thus, the IVA will be approved if 75 % in monetary value is voted for. If a creditor does not attend the meeting (but he had been notified of it!), it is assumed that the creditor will accept the agreement. If only a few of the creditors accept the initial agreement, the conditions can be changed and the meeting will be held again. After the approval of the IVA, all creditors are bounded by the law, and they can not change any of the terms. The debtor will keep in touch with the Insolvency Practitioner and pay him the agreed monthly amount. The Insolvency Practitioner makes sure that the money reaches the creditors, in the agreed percentage. IVAs are usually signed for three or five years, and after the debtor had paid the sum agreed on, he becomes a debt-free person. Consider this: with an IVA a debtor pays back only a part of the initial debt to the creditors, since all interest and other costs are frozen, and the debtor will pay only the debt itself, so at the end the debtor had paid a smaller amount of money back, any outstanding balances are written off.

Let us go through the benefits of an IVA once again: the debtor will have to make only one monthly payment to the Insolvency Practitioner, the payment is an affordable amount, the creditors can not take further actions against the debtor, in five years the persona can become debt-free and finally the IVA is a personal matter, being a good alternative to declaring bankruptcy.