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The 9 steps of the IVA Process
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1 |
It is important that you complete, sign and return our easily standardized application form attached with copies of all recent bank statements and any creditor letters. |
2 |
Once you have filled out the questionnaire and it has been received by our professional advisors, one of our consultants will contact you and go through your application with you |
3 |
If your case meets the standard criteria for an IVA, we will accept you onto the IVA Programme and you will be referred to one of our sister companies who will then refer you to one of our panel members |
4 |
Our panel member will now by law act as your legal representative and all your creditors will be informed of the new situation. This means that you should no longer have to face those harassing calls or further have to have any correspondence with your creditors. |
5 |
In the meantime an IVA proposal will have been presented, which is a written agreement and sets out all the actual terms & conditions of the IVA Programme |
6 |
To legally protect you from your creditors, an "interim order" is granted. This is an action which fully allows protection from your creditors. Upon granting of the interim order, no legal action can be forced against you. Once again, you are now fully protected from creditors issuing or continuing bankruptcy proceedings. |
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As the interim order has been granted, a panel member prepares a "Nominees Report" this is a professional statement, stating an opinion as to whether the IVA is a true offer. |
8 |
The next step is ‘meeting of creditors’ takes place. This meeting consists of all creditors and you gathered in a meeting room to discuss the IVA, however, many a time, creditors rarely meet up as all voting is done prior to the meeting |
9 |
Once the IVA is approved you are now legally bound to keep up your monthly IVA payments. On approval, your creditors will now leave you in peace. And most importantly your monthly payment will be easily affordable by you because it is solely based on your disposable income |
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The IVA approval process (Step 8)
For the IVA to be approved, creditors vote either ‘for’ or ‘against’ the arrangement. If only one creditor votes "for" the IVA Programme, IVA will be approved. If only one creditor votes ‘against’ the IVA and that particular creditor represents less than 25% of the total debt, then the chances for an IVA will not be reduced however a second meeting will then have to take place at a later date and all the other creditors who did not vote will be called for their vote.
If a creditors voting ‘against’ the IVA represents more than 25% of the total debt the IVA will fail. This is because an IVA will only ever be approved if in monetary value, 75% is voted for. If any single creditor does not vote, their vote by default will be classed as ‘for’ the IVA. |
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