IVA – How to apply for an individual voluntary arrangement

If you want to apply for an individual voluntary arrangement, you must appoint an Insolvency Practitioner to supervise the implementation of the agreement.

Once you have appointed an Insolvency Practitioner, you need apply to the court for an interim order, which stops your creditors from presenting the court with a bankruptcy petition against you.

• The Insolvency Practitioner must establish that you are proposing a viable arrangement
• If it is viable, the Insolvency Practitioner must report to the court to state that a meeting of the creditors is being held.

The creditors meeting

During the meeting, the Insolvency Practitioner attempts to balance your rights and duties with those of your creditors.

• During the meeting, the creditors decide whether or not to approve the arrangement, which may be approved with or without modifications.
• Creditors vote on whether a individual voluntary arrangement is to be c onsidered. If a majority (in excess of three-quarters in value of the debt) of creditors accept the proposal, all creditors who had notice of the meeting are bound by the arrangement.
• The creditors do not have to approve the individual voluntary arrangement.

Once the agreement has been approved, the Insolvency Practitioner supervises the agreement and oversees payment to creditors.

Individual voluntary arrangement charges

The costs of an individual voluntary arrangement will vary between Insolvency Practitioners. You should ask several Insolvency Practitioners what they charge before deciding which one you want to act for you.

You may find this link useful for  a discussion about your circumstances

More information

• IVA – What is an individual voluntary arrangement?
• IVA – The individual voluntary arrangement process
• IVA – Who needs an individual voluntary arrangement?
• IVA – How to apply for an individual voluntary arrangement
• IVA – The advantages of individual voluntary arrangements
• IVA – The disadvantages of individual voluntary arrangements
• IVA – Insolvency and individual voluntary arrangements