How the process works
Once a decision has been made that an Individual Voluntary Arrangement (IVA) is right for you, you will be asked questions about your financial position. Based on the information you have given, a repayment amount will be agreed with you. Once an IVA proposal has been drawn up you will need to check this and with your consent we will then contact your creditors.
Your creditors will receive a copy of your proposal and a report from the Insolvency Practitioner recommending the proposal to them.
YOU DO NOT NEED TO WORRY THOUGH! Throughout the duration of the IVA you will have a dedicated IVA supervisor who will oversee the arrangement. You make ONE payment each month into an account in your name and, providing you stick to the agreement terms of your IVA, at the end of the IVA agreement term the remaining debt will be written off leaving you completely debt free.
A meeting of your creditors will be arranged for the creditors to vote on the proposal – usually approximately 18 days after the proposal is sent to them. This meeting is normally held at our offices and it is unusual for anyone to attend in person. Votes are received by post or fax.
You do not need to attend the meeting but it is important for you to be available by telephone in order for any points which are raised to be clarified and dealt with.
An experienced member of the team at Kingsgate Insolvency will be appointed to chair the meeting.
The IVA will be approved if 75% in value of the votes received are in favour of the IVA. This means that any creditors who do not vote will still bound by the IVA.
After the IVA has been approved
Once the IVA is approved you will receive a copy of the report confirming this including details of any modifications which you may have agreed to.
An Insolvency Practitioner at Kingsgate will be responsible for overseeing the IVA but on a day to day basis an experienced member of the Kingsgate team will be your point of contact at Kingsgate. You make ONE payment each month into a special account set up to receive your payments.
If you own your home you may be expected to try and obtain a remortage before the end of the IVA. You will not be expected to sell your home and if you are able to obtain a remortgage this must be for an amount which is affordable for you. If it is too expensive for you to obtain a remortgage or you are simply unable to find a lender willing to provide a remortgage the IVA may instead be extended for up to 12 months during which time you would continue the monthly payments.
At the end of the IVA the remaining debt will be written off leaving you completely debt free.
An IVA may affect your credit rating for up to 6 years and a fee may be applicable depending on suitability and qualification.
