Successfully completing the IVA will mean you are considered debt free. Any outstanding balances are classed as composition of debts, which means they are wrote off. You are now ready to make a fresh financial start.
If you enter into an IVA with your creditors and you have an endowment policy with your mortgage then you may be expected at some point to cash it in and pay the proceeds into the arrangement. Also if your property has a reasonable amount of equity then it is likely that some of it will have to be released at sometime during the end of the arrangement so it can be paid towards your creditors.
Days
Required |
Tasks |
Further Tasks |
1 |
Case received. |
Case assessed |
3 |
Client Care: Letter to client stating receipt and initial draft of IVA Proposal in preparation. |
|
7 |
Draft Proposal sent to client. |
Any outstanding information requested. |
7 |
Acceptance from client. Proposal is completed and formally served on the Nominee. |
|
2 |
On receipt of Nominee’s "Consent to Act", A Interim Order application is issued to client. |
Clients file paperwork at Court (can be sworn before a solicitor and the Insolvency Practitioner will file.) |
1 |
The Interim Order is granted by Court |
|
14 |
Nominee's Report is filed at Court |
Report comments on Proposal and states date, time and place for creditors' meeting. |
7 |
Notice of meeting issued to all creditors with copies of the Proposal, Nominee's Report and Proxy. |
|
21 |
Creditors' meeting takes place |
Meeting is held not more than 28 days from hearing of Nominee's Report. It may be adjourned up to a maximum of 14 days from the date of the original meeting. |
Total
61
days |
If 75% of Creditors (by total monies owed) agree, IVA approved |
|
