PVA & Individual IVA's - Process

A PVA is entered into and at the same time those partners with personal debt problems enter into individual voluntary arrangements.

FOR THE PVA PROCESS SEE PVA – PROCESS.

IVA PROCESS

How is the application made?

Initial Fact Find

We need to find out as much as possible about the partner’s personal financial position, including details of assets and liabilities and the causes for the build up of debt.

A review of the partner’s monthly income and expenditure will also be necessary.


Proposal

Once we have established that an IVA is viable and is likely to be considered favourably by creditors, we will prepare proposals which set out how the arrangement will work, how the partner’s assets are to be dealt with and what payments the partner’s creditors will receive.

An example proposal could be that the partner makes contributions of £400 out of future drawings for a period of 5 years in full satisfaction of their debts.

Nominee’s Report
The IVA procedure can only be administered by Licensed Insolvency Practitioners. In the period prior to the creditors' meeting, the Insolvency Practitioner acts as Nominee. After the proposals are complete, the Nominee needs to prepare a report on the proposals which includes comment on the investigations that have been undertaken to ensure that the IVA proposals are accurate, reasonable and achievable.

If immediate protection from personal creditors is required, it is possible to apply to court for an ‘interim order’. This will provide the partner a "breathing space" in which to propose and implement an IVA without the threat of proceedings from creditors.

A copy of the proposals and the Nominee's report will be lodged in Court and distributed to the company's creditors.

Creditors' Meetings

A meeting of the partner's creditors will be held to consider whether to approve the proposals.

The proposals will be approved if in excess than 75% of its creditors, WHO ARE ENTITLED TO VOTE AND DO ACTUALLY VOTE, support the arrangement. Consequently if just two creditors submit proxies (voting forms) and both of them agree to support the proposals, this constitutes 100% approval from those creditors who are ENTITLED TO VOTE. 

 

The Next Step

The options for a financially distressed business need to be very carefully considered. Simply forward your details on our Contact Form and we will contact you. Alternatively ring us on our FREE ADVICE LINE 0800 781 0990.

 

All debt solutions should be very carefully considered. Fees will be charged if a solution is taken in order for us to advise and administer the most appropriate action - all fees will be outlined during your consultation. Retained payment may place you further into arrears. The Business Debt Advisor complies with the Consumer Credit Act and you have the right to a cooling off period of 7 days. It is likely that your ability to obtain further credit in the short term will be affected and this may also be the case over the medium to long term.