When exploring the Individual Voluntary Arrangement (IVA) option to your debt problems, you will hear the words ‘Insolvency Practitioner’ throughout the process.
Here is a brief explanation of what role an Insolvency Practitioner, or I.P., takes within the Individual Voluntary Arrangement (IVA) process.
What are Insolvency Practitioners ?
Well, quite simply, they are accountants that specialise in providing insolvency services.
They have qualified through passing several stringent insolvency exams that allow them to provide all types of insolvency services, be it corporate insolvency, dealing with company liquidations, or personal insolvency services such as Individual Voluntary Arrangement (IVA) or personal bankruptcies.
Generally they will chose which sector of the insolvency field they want to practice, and in the case of an I.P. working with Individual Voluntary Arrangements (IVAs) they are practicing in the personal insolvency sector.
As an IVA specialist My IVA Adviser has a dedicated Insolvency Practitioner who deals with all our Individual Voluntary Arrangement (IVA) clients
What role do I.P.s fullfil within the IVA application, or Nominee stage of the Individual Voluntary Arrangement (IVA) ?
When a person, or a couple, approach an I.P. for help with their Individual Voluntary Arrangement (IVA) application, whether through a Individual Voluntary Arrangement (IVA) referal company or to the I.P. directly, the I.P. will be acting on behalf of the individual(s) concerned.
The I.P. will be required to gather together all the relevant paperwork, creditor details and personal profiles to enable an IVA proposal to be drafted.
Once drafted, the I.P. will arrange for the IVA proposal to be put forward to creditors at an IVA Creditors Meeting.
It is after a successful creditors meeting that the I.P.’s role will change.
Up until now, the I.P. will have been representing the debtor, and working on the debtor’s behalf, as the Nominee to the Individual Voluntary Arrangement (IVA).
However, after the IVA creditors meeting, the I.P. will become the IVA supervisor.
The I.P. now takes on a change in position. Their role becomes that of an administrator of the Individual Voluntary Arrangement (IVA), on behalf of the creditors.
They are required to uphold the IVA proposal throughout the life of the Individual Voluntary Arrangement (IVA). They are responsible for checking that payments are paid on time and that the Individual Voluntary Arrangement (IVA) schedule is been kept to.
They represent the creditors by periodically reassessing the financial position of the debtor during the Individual Voluntary Arrangement (IVA), making sure that the Individual Voluntary Arrangement (IVA) is on target, and reporting beck to the creditors should there be a problem with the Individual Voluntary Arrangement (IVA) itself.
The I.P. is also responsible for the collection of money into the Individual Voluntary Arrangement (IVA) fund, and for the payments to the creditors of the money, once it has been collected.
So, as you can see, the Insolvency Practitioner’s job has two roles.
Nominee. Which is pre Individual Voluntary Arrangement (IVA) agreement, where they are acting for the debtor.
Supervisor . Which is after the IVA creditors meeting, where they are acting on behalf of the creditors.
For further information regarding any aspect of an Individual Voluntary Arrangement (IVA) or the Individual Voluntary Arrangement (IVA) process, click here.
Or if you prefer to talk to a real person, that will be delighted to help you with any of your debt related questions, then My IVA Adviser invites you to call one of our Individual Voluntary Arrangement (IVA) specialists for free on 0800 088 7503 anytime.