Analyze implication of IVA and find out whether it suits you or not. For this you have to appraise yourself thoroughly about the IVA methodology and its advantages and disadvantage. Take the opinion of your debt advisor who will be in a better position to guide you in the matter. Proposing IVA requires you to engage Insolvency Practitioner who will be recommended by your debt advisor or the IVA firm.
It requires you to present your case with details of your financial circumstances, such as, state of affair, your earning, family expenses, assets, debts etc. Your living expenses will determine your amount of repayment to your IVA every month; meanwhile, your debt advisor will help you in assessing your IVA living expenditure budget.
This is a most crucial part since it deals with the documentation and the drafting of IVA Proposal, which will serve as a formal legal document detailing your financial circumstances and the proposed amount of repayment that you will make to your creditors in an IVA.Prior to submission of the proposal submit your financial statement, debt balances, salary slip, past business account and bank statement.
Require you to meet your creditors to discuss your IVA proposal for reviewing. The creditors if needed may propose some same changes in the draft proposal which you are required to discuss with your IP. However, in the absence of consensus the other debt management solution may be chosen.
Now you have reached the final stage. Once the IVA Proposal has been accepted it becomes the legally binding document for both the parties that are creditors and the debtors. You are obliged to follow all the terms and condition of the IVA and any breach of the terms will result in failure of the IVA. Beside this, your creditor may declare you bankrupt, since it's extremely strict with its terms and conditions.Once the remaining debt has been written off and completing the IVA you are absolved from all your liabilities.