if i decide to enter into an iva with my creditors, what happens?
what is the iva process?

Once you have decided that an IVA is the way for you to proceed, you need to choose an IVA provider. Take your time and shop around because like most things, there are good ones and bad ones. Once you have chosen one that you feel comfortable with there are things they will expect from you to allow them to set the wheels in motion.

Stage 1
In an attempt to work out how much to offer each creditor and to see if an IVA would even be accepted, a full assessment of your finances must take place. The IVA provider then determines whether or not to proceed.

Stage 2
A draft proposal, which details all of your debts and your very best repayment offer to each creditor, will then be produced. You sign this to agree that you have considered all of your alternative options.

Stage 3
This draft proposal is sent to your creditors to either agree to or request any changes to this proposal.

Stage 4
The creditors meet to discuss your proposals and as long as the creditors representing 75% of the total debt agree, then the proposal is accepted and becomes legally binding to all creditors. Both the court and all creditors are formally informed of the agreement and your IVA provider will manage your IVA.

Stage 5
All you have to do now is keep up your repayments over the term of the IVA (usually 60 months) and when it's finished any outstanding debt will be written off and you will be debt free.

To ask us any questions about the iva process or you need personal debt help, call our FREE debt helpline on 0800 018 6868.