If you want your IVA to go smoothly, then it is important that you understand that you need adequate preparation irrespective of what it takes. Without preparations, you can mess things up. You cannot afford to take a chance that your IVA proposal will be rejected. If your proposal gets rejected, you may be facing bankruptcy. Hopefully, that will not happen since you are here already.
Entering IVA is a big decision. You need to ensure that you’ve considered this decision carefully. This is because once you enter IVA, it can have some effects on your personal, professional, and financial life even if you are successful. Once you enter IVA, you cannot take any new debt above £500. We will assume that you’ve considered all the benefits and of course, disadvantages of IVA and have concluded that it is the best option for you at this point.
Today, you will learn various ways to ensure that you prepare enough for IVA and avoid being rejected.
Every successful IVA starts with a good financial statement. No doubt, your financial statement will form the foundation of your application. You need to make a full list of your income and spending. We recommend you add some evidence such as recent payslips and details of other commitments you may have like your utility bills. Add all relevant document but ensure you present them in a clear and easy-to-understand manner. It is better you have too many documents than too little.
It is important that you understand that you cannot set up an IVA yourself. Thus, you will need to do research for a reliable and experienced Insolvency Practitioner. He must be licensed to negotiate the arrangement on your behalf. Once your IVA becomes successful, he will also be the one to manage it for you. We recommend you choose someone or an agency that is very reliable.
Don’t commit yet until you’ve had meetings with your chosen Insolvency practitioners. We recommend that you talk to at least 3 of them before making your choice. Usually, most insolvency practitioners will give you first consultation for free. This is your opportunity to ask questions and clear any doubt you may have. Compare various practitioners before you make your choice.
Basically, your insolvency practitioner will do all the work for you including drafting your proposal and submitting this to your creditors. It is important that you don’t get lazy at this point. Ask this professional working for you to send a copy of the proposal to you for a review before he submits it. You need to ensure you are totally happy with the content and the words used in the proposal.
If your proposal gets accepted, there will be a meeting with your creditors. However, you don’t have to be present in these meetings but it is always recommended that you attend the meeting. It will be a great opportunity for you to address any specific concern you may have.
Final Words
Preparing for an IVA is a serious task. In most cases, the bulk of the task lies in finding the right insolvency practitioner. Once you get a reliable and experienced IVA expert to help you, the rest of the process will go smoothly.