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IVAs & Creditor Meetings
| An individual voluntary arrangement is an in option sought by many consumers experiencing debt problems. The individual voluntary arrangement or IVA is a formal proposal drawn up with the assistance of a professional known as an insolvency practitioner. Once the proposal has been completed, the meeting must be scheduled between a representative of the debtor and all of the debtor's creditors. Typically this representative for the debtor is also the insolvency practitioner. Once the meeting is scheduled the information is passed on to the creditors. At the meeting the creditors decide whether not they wish to approve the individual voluntary arrangement proposal as is or if they wish to suggest modifications. These modifications cannot be approved without first obtaining the permission of the debtor. The meeting facilitator would be the representative for the creditor. In order for the individual voluntary arrangement to be approved creditors with a total of over 75% of the debt must agree to the proposal. Once the approval is obtained the representative for the creditor must report the details of the meeting as well as the individual voluntary arrangement with the secretary of state. This information then becomes registered and is also provided to the courts. There is a fee required to register an individual voluntary arrangements. The fee was established by the fees order of 2004 which requires 35 pounds for IVA registration. If the entity seeking the individual voluntary arrangement is a company then the agreement does not need to be registered. Instead the information would be provided to the registrar of companies. The individual voluntary arrangement is considered to go into effect at the time of the meeting provided it has received the necessary approval. It is also possible that the creditors will deny the debtors request for approval. Should this occur any interim orders that have been secured by the debtor would still be applicable until dissolved by the courts. The representative for the debtor is required to keep records regarding the administration of the voluntary arrangements period these records would include any receipts and payments. After each 12 month period has elapsed the representative must also provide a report to the secretary of state regarding the current state of the arrangement. |
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For more information on IVA's or for any other type of debt advice, contact the experts at www.debt-free.org.uk today.
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