To define what is IVA, it is an Individual Voluntary Arrangement, to give it its full title, is a fixed-term repayment plan IVA is a short form of individual voluntary Arrangement This is a total fixed repayment plan designed to permit those people who are experiencing serious problems of debt a chance to pay back their creditors a reduced payment. This establishment will also protect its members and whatever they own legal action threats and bankruptcy.
So, what is IVA process? First IVA must be set up by an Insolvency practitioner who is licensed? IP will have to access the financial situations to determine if IVA right for the applicant.
What is IVA proposal? When the IP has determined that IVA is appropriate for whoever has applied for it; the next step ahead is the arrangement of the IVA proposal of the applicant. An insolvency practitioner has to come with a statement of the affairs of the applicant comprising all the data of personal circumstances, the current financial state, and how the applicant has proposed to pay back the debts.
What is IVA interim order? This is where the applicant or the member has finalized the IVA proposal. Then the practitioner files the Interim with the court to protect the applicant from bankruptcy or any legal enforcement.
What is IVA proposal copy? When the meeting has been held, the IVA sends copies to every creditor when the IVA proposal has been signed by the applicant and the insolvency practitioner who is elected to control the case of the applicant. Creditors are given a free period of two or three weeks to have a review of the proposal and then give their response.
After this, a creditors meeting is held up to vote on the signed proposal. The Insolvency practitioner who was elected to control the case will be acting as a chairman of the meeting. Here, there does do not seem to be a really meeting, since creditors cast their votes in advance through a post or a fax. However, creditors have the right to reject or approve the modifications that are made. If the seventy-five percent of the creditors will vote for the IVA, the proposal will be approved for all the creditors.
What is IVA approval? This is when the proposal has been approved. Then after this, what is IVA proposal period? The proposal will have to last for a period of sixty months. During this period, the applicant will make payments on a monthly period under the supervision of the Insolvency practitioner.