Harrington Brooks has an excellent record of getting IVA proposals approved - in most months achieving a 95%+ success rate.

IVA Proposal

An IVA proposal is the formal IVA application document which is presented to the applicant's creditors for their consideration. They vote, either in favour or against it.

What's Included In An IVA Proposal?

An IVA proposal should include full details of the proposed arrangement, explanation of why an IVA is an appropriate solution for this applicant; and why creditor acceptance is a reasonable expectation.

An IVA proposal should also include details of:

• Anticipated applicant income during the period of the IVA.
• The applicant's assets with estimated values; plus any assets available from friends/relatives which are to be introduced into the IVA pot.
• Details of any charges on properties (ie secured loans) and any significant assets the applicant proposes to exclude from the IVA, giving reasons why.
• Details of all the applicants debt's and details of any guarantees given for them by third parties, (guarantor loans).
• The proposed duration of the IVA with levels and schedule of payments to creditors. IVA's don't normally last more than 60 months; although in some cases they can be 72 months.
• Details of the Nominee and proposed Supervisor of the IVA, in both cases this will be a Harrington Brooks' Insolvency Practitioner (IP).
• Fees payable by Creditors for IVA Nominee and IVA Supervisor services; see more about IVA fees.
• Whether the client as made an IVA application in the past 24 months and if so whether:-
  - the proposal was approved; and what happened to the resulting IVA.
  - the proposal was rejected; and what differs between that and this new proposal.
• Previous attempts to deal with the clients financial problems and reasons why they were unsuccessfully.

Who prepares an IVA proposal ?

At the time of their introduction in 1986, IVA's were intended for business people and the self-employed who had fallen into financial difficulties due to their business affairs. Case volumes were low, often complex and typically dealt with solely by an Insolvency Practitioner (IP). In recent years IVA's have evolved into a consumer product helping in the majority of cases, employed people with more straight forward financial affairs.

As such, IVA proposals are now commonly prepared by a team of IVA drafters, under the supervision the IP who remains ultimately responsible for proposal and the advice given to the client. The more complex or out of the ordinary the case, the more direct input from the IP is required.

The IP has a duty to ensure there is a fair balance between the interests of their client and the creditors. It is an everyone's best interests that only quality IVA proposals with a high expectation approval are presented.

An IVA proposal is a legal document and as such to falsify information is and offence.

Meeting Of Creditors - MOC

An IVA proposal is considered by the Creditors at what is called the "Meeting Of Creditors" or MOC.

Harrington Brooks has an excellent record of getting IVA proposals passed (or passed subject to minor modifications) at the MOC - in most months achieving a 95%+ success rate. Most failures are due to facts about the applicants financial affairs coming to light at the time MOC which we have been unaware of.