Individual Voluntary Arrangements (IVAs) are one of the most common debt solutions used by individuals with debt problems in the UK. For people entering into an IVA the basic process is as follows.

Although the actual process may vary generally IVAs work in a similar way. The process can be split into two distinct areas. These areas are firstly the ‘nominee process’ and secondly the ‘supervisor process’.

The nominee section of the individual voluntary arrangement process describes everything that takes place up to the IVA proposal being accepted by your creditors. This part of the process begins with an initial fact find and assessment to determine whether you would qualify for an IVA or if an alternative such as bankruptcy or a debt management plan may be a more suitable option. The fact find will look at your financial status, number of creditors and the amount of money you owe.

If you do meet the qualifying criteria then the company managing your IVA will begin gathering all the relevant documentation eventually leading up to the production of an IVA proposal. The IVA Proposal is signed by you as a true and accurate reflection of your financial affairs and is then distributed to creditors for review, comment and hopefully approval. Finally a creditors meeting is arranged where the proposal will either be accepted or rejected.

The supervisor process begins after the acceptance of the IVA. At the commencement of the IVA a supervisor is appointed who will be responsible for acting as liaison between yourself and your creditors. It is usual for regular reviews to take place during the IVA. Here the supervisor will check to ensure that the terms of the agreement are being adhered to. In the event that a significant change in your circumstances occurs then the Supervisor can recommend the creditors accept a Variation Order to change the terms of your IVA. The supervisor process ends on the completion of the arrangement which will usually be after five years.