The IVA Process

Before committing to any debt solution, it's important to get as much information and advice as possible. This will help you to draw comparisons between the different options open to you. Everyone's financial circumstances are different so it's important to talk to an advisor that can help you find the right solution for you.

Your IVA proposal

We need to gather as much information about you as we can, to help us put together a detailed IVA proposal on your behalf.

We'll need a complete breakdown of all of your debt, both secured and unsecured, a detailed plan of your income against expenditure, and a list of all the assets that you may own, whether they are being used to secure debts or not. Having made a clear assessment of your financial circumstances and compiled out findings in the proper documentation, we will then begin to draw up an in depth IVA proposal.

Harrington Brooks' Licensed Insolvency Practitioner will act as your Nominee in drawing up the plan. This means that they will act on your behalf when presenting the offer to your creditors.

The Creditor meeting

Working closely with you on the proposal, Harrington Brooks will only make a submission to your creditors once you are totally happy. We'll then set a date for your Creditor Meeting, where your creditors will each vote on your IVA proposal; either to accept, decline or ask for amendments.

Should the Creditors Meeting find it necessary to make amendments to your IVA proposal, our Licensed Insolvency Practitioner will be sure to agree any changes with you. The last word will always be yours; you are in total control of whether you accept any of the amendments. Of course, Harrington Brooks will strive to make the strongest possible case for you. We have a lot of experience in negotiating with creditors to get our clients the very best deal.

You are not required to attend the meeting in person. In the vast majority of cases, an agreement can be reached by proxy and over the phone. Of course, we would advise you to make yourself available to respond to any modifications to the proposal immediately.

How your creditors vote on the IVA Proposal

All of your creditors are entitled to vote on your IVA Proposal. It takes a 75% vote in favour of the proposal for it to be accepted. However, this voting percentage is defined by value. The votes are proportionately representative of the amount of money that you owe to each creditor and not simply a matter of numbers of creditors. So, if you owe 75% of your total debt to one creditor, they have the casting vote on your IVA Proposal. Regardless of the number of creditors or the breakdown of the voting, once the proposal has been accepted, it is binding to all creditors. Even if a creditor voted against the proposal, they are still bound to the agreement and have no recourse to take alternative action.

Should a creditor be left out of the proposal and emerge once the IVA is underway, they can demand an amount equal to that which they would have received if they'd been in since the beginning.

Upon approval of your IVA, our Licensed Insolvency Practitioner becomes the Supervisor of the arrangement, meaning that they will manage the IVA and protect the interest of your creditors. It will be their job to ensure that you stick to the repayment schedule outlined by the IVA proposal. This benefits you as you will stop receiving correspondence from your creditors demanding payment. All payments are collected in a fund managed by the Insolvency Practitioner.