How long will it take?
The setting up of an IVA will take approximately four to six weeks although the actual time taken will depend upon on how quickly the individual can supply the information required. At the beginning of the process there is fact finding and evidence gathering where full details of the individual's affairs, creditor details, assets and income are obtained. The IVA proposal is then drafted and once agreed by the individual is signed, lodged in Court and then sent to all creditors. The actual drafting of the proposal, lodging it in Court and sending to Creditors is managed by the Insolvency Team at TCF Debt Solutions. All the individual has to do is to provide the information, ensure that the proposal is correct and sign it.
A meeting of creditors is then held at which creditors can either vote in favour of the proposals, vote against the proposals or vote in favour of the proposals subject to modifications. The individual must consider and then agree to any modifications that are proposed for them to be binding on the proposal. The meeting of creditors is often just a paper meeting as creditors will submit their votes by post prior to the meeting.
Approval
For an IVA proposal to be approved creditors must vote in favour and a majority of 75% by value of creditors who actually vote is required. Once the proposal is approved it is binding on all creditors, even if they did not vote or even voted against.
Once an IVA proposal has been approved creditors can no longer take any legal action against the individual. They can only claim their share of the dividend due to creditors from the IVA. The individual is of course also bound by the terms of the IVA and is obliged to honour the repayment schedule agreed throughout their supervisory period (usually between 3 and 60 months).
Payment to creditors
The voluntary contribution payments will be paid by the individual into the IVA fund which is managed by the Insolvency Practitioner at TCF Debt Solutions. It is the money in this fund that is used to pay the creditors. The Insolvency Practitioner will agree creditors claims, will ensure that the individual is paying the correct amount and when sufficient funds have accrued will pay a dividend to creditors.
Completion of IVA
At the end of the supervisory period the individual becomes debt free.