How Do I Get an IVA?

Before you decide to go ahead with an IVA proposal you will be required to to sign a Statement of Truth document provided by an Insolvency Practitioner (IP). If you don’t have an IP then you can get one through another source but that is where most people will acquire the document. This document will be used when you apply for an Interim Order from the local county court. An Interim Order  will mean that your creditor’s must stop harassing you and will mean that they can not take action against you for a specific period of time.

When your creditors meet to go over the proposal for an IVA, they will likely do so by proxy rather than in person. Originally ‘Creditors Meeting’ took place in person but that has not been the case in recent years. Even if the creditors do show up to the meeting, it typically only last between 15-20 minutes long. The IP will be in charge of the meeting and you should be available to speak on the telephone during this time. Your creditors may have specific questions for you – so it’s important to be available to them during this time.

Another thing to take note of is that you could end up spending more on an IVA then you do going bankrupt. The main reason is that a bankruptcy will only last three years worth of income contributions while an IVA is usually five. This means that your creditors may be willing to cut you a good deal because they will get less money back if you decide to go bankrupt. Make sure you’re aware of your choices before you go ahead because these decisions will end up living with you for years.

The best part about an IVA is that you get to keep your home so keep that in mind when you’re making your decision as well.