Now let us see the process itself. First you need to contact an IVA practitioner, often called Insolvency Practitioner. After you have contacted him, you do not have to do much. Of course, you will have to give him all information on your creditors and the amount of your debt. From now on he will represent you and he will contact all your creditors, and informs them that he will represent you legally. In the mean time he will agree with you on a realistic repayment amount and an individual voluntary arrangement will be signed. This IVA will be sent to all your creditors; it is very important to give real information to your IVA practitioner so he can send the arrangement to every creditor you have. If a creditor does not receive the arrangement, he might start bankruptcy procedures against you. After the IVA practitioner sent the arrangement to the creditors, they will have a meeting. Usually you do not have to attend the meeting, it is important that your creditors be there. During the meeting the IVA practitioner and the creditors will discuss on the arrangement and solve any disagreements. After the discussion, creditors will have to vote: they can approve or reject the arrangement. Creditors by the amount of money you owe them, the vote is not based on head count. If 75 % of them approve the arrangement, then the others who did not accepted it are forced by the law to abide. So the creditors can not take any action on you if you stick to the terms agreed on the IVA. As soon as you are late with your payments, the IVA becomes absolutely useless and the creditors are free to take action against you. It is important to note that from now on you won’t be sending checks to your creditors every month, you will send the money to your IVA practitioner who will distribute it to the creditors.
You can now see that an IVA proposal is not very hard to obtain, and you have really good chances that your creditors will approve it. After all, they want money back. And if they can not get all their money back, they will be satisfied with even of a part of the money owed. So the IVA is good for both sides: creditors and debtors. You should pay attention to some very important details: you have to give every detail about your creditors to the IVA practitioner, because if only one creditor does not receive the IVA, he can declare you bankrupted. So it is very important to give all the necessary information to your IVA practitioner. The other very important thing is for you to stick to the terms written in the IVA. You have to pay the amount agreed on the date agreed, otherwise your creditors can start any legal action against you, and you are not protected by the law anymore.
Basically this is everything you need to know about IVA procedure and arrangement, for any further information you should contact your IVA practitioner, because only he will be able to answer all the questions regarding the specific situation you are in. After you have signed the IVA all you have to do is to stick to the terms agreed on, and you will be out of debt really soon.
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