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IVA : The Role Of The IVA Nominee.
For those people who are considering an Individual Voluntary Arrangement, also referred to as an IVA, as a solution to a serious debt problem, there is a likelihood that they will hear the term 'IVA Nominee' whilst they are researching Individual Voluntary Arrangement (IVA) facts.
Here is a brief explanation of what an IVA Nominee's role is within the Individual Voluntary Arrangement (IVA) process.
The term 'Nominee' is the title given to an Insolvency Practitioner in the time before an Individual Voluntary Arrangement (IVA) creditors meeting is convened.
If the Individual Voluntary Arrangement (IVA) is accepted at the creditors meeting, the Insolvency Practitioner then becomes known as the 'IVA Supervisor'
During the time before the creditors meeting the Nominee is 'nominated' to act on behalf of the debtor.
The Nominee is appointed when a debtor returns a notice of 'instruction to act', stating that the debtor wishes the Insolvency Practitioner to act on their behalf in applying for an Individual Voluntary Arrangement (IVA).
An IVA Drafter, who works for the Insolvency Practice, will then prepare the IVA proposal.
The IVA proposal, which is sent to the debtor's creditors is always written as if the IVA proposal comes directly from the debtor. In theory the proposal is the debtor's statement of his affairs and proposals to his creditors. The IVA proposal is then signed by the debtor, to confirm his agreement with the content.
Once the debtor has provided a letter of authorisation, the Nominee can speak directly to the debtor's creditors on their behalf.
The debtor is required to provide the Nominee with an open and honest account of their financial situation. The Nominee will discuss the suitability of an Individual Voluntary Arrangement (IVA) as an appropriate method of dealing with debt, subject to the debtor's personal circumstances.
The Nominee will provide advice on how the debtor's creditors are to be handled in the period before the IVA creditors meeting. For example, the Nominee will ensure no preference is given to any one creditor, which could prejudice the Individual Voluntary Arrangement (IVA).
The Nominee will also provide advice about the inclusion of any assets into the Individual Voluntary Arrangement (IVA), for example, equity in a property, endowment policies or savings.
The Nominee will discuss every aspect of the debtor's income and expenditure, to arrive at an affordable monthly repayment which is fair to both the debtor and the creditors.
The Nominee can deal with the debtor's correspondence. This can involve dealing with collection agencies and court proceedings. The Nominee will consider if an Interim Order is required to stay any legal proceedings that may impact on the Individual Voluntary Arrangement (IVA).
The Nominee will provide a comparison statement to creditors of the likely return in the event of the debtors bankruptcy, so that this can be compared to the Individual Voluntary Arrangement (IVA) offer.
And finally, the Nominee will provide an estimate of the funds to be distributed to the creditors on the approval of the Individual Voluntary Arrangement (IVA).
For further information on all aspects of an Individual Voluntary Arrangement (IVA) click here.
To speak to one of the myIVA-Adviser Individual Voluntary Arrangement (IVA) specialists advisers, Free-call 0800 088 7503, anytime.
