The first step is to speak with one of our experienced team who will look at your financial situation and make a list of all of your monthly expenses including, rent / mortgage, food, toiletries, loans, credit cards, living costs etc. Once your monthly expenses have been taken into account, we will be able to identify what money you have left over and out of that figure, determine what you can realistically afford to pay to your creditors each month – this figure is likely to be lower than your current monthly expenditure.
We will explain how an IVA works and answer any questions you may have about the process. If an IVA is a suitable solution for you, we will prepare a proposal outlining the suggested payment plan which is then sent to your creditors. Your creditors then have an opportunity to vote to accept or decline your proposal, but don’t worry – in the rare case where a creditor is unhappy with the proposed plan, we will negotiate on your behalf.
It will always be a Licensed Insolvency Practitioner from our experienced team that will lead the negotiations with your creditors.
When a proposal is approved, you will then start to make your lowered monthly payments (usually over a period of 5 years) and when the IVA term finishes, all outstanding debts will be written off. Put simply, an IVA can help you make a fresh start financially, no matter what level of debt you are currently in.
An IVA is also is also useful if you trade as a sole trader or partnership and want to protect your business from being forced to close because your creditors are threatening bankruptcy proceedings against you.