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The following highlights the main stages involved when entering into an IVA with Debt Plan Direct.
Stages of the IVA Process
Day 1
Your personal debt caseworker at Debt Plan Direct will take into consideration your income, outgoings and total level of debt including the number of creditors you owe money to. This will enable a full assessment of your financial circumstances and, if feasible, an IVA will be put forward. Through one of Debt Plan Directs trusted partners a licensed Insolvency Practitioner will contact you to "nominate" you for the IVA- this is simply to confirm that you are suitable for an IVA and it is in your best interests to enter into the IVA.
Day 14
Based on the information provided Debt Plan Direct will next draw up a formal "proposal" for the offers of repayment that you can afford to pay on your existing debts. Normally the offer of repayment will be made up of regular contributions made monthly over 5 years or could be a lump sum payment amount. You will also have your own Personal Debt caseworker at each stage of the IVA process to help you with any issues or to clarify any points.
Day 35
- A copy of the offers of payment on the proposals is sent to each of your creditors, who then vote either accept or reject the offer of payment.
- If the majority of your creditors (that is at least 75% of the value of the total debt) vote in favour, then the IVA is approved and will be legally binding for all creditors regardless if the creditor rejected the proposal or did not vote.
- Once the IVA has been approved, you simply begin the agreed monthly payments (or pay the lump sum) and all calls and letters from your creditors must legally cease.
Congratulations! Your IVA has been approved.
60 Months
Once the agreed payments have been completed the remainder of the debt will be cleared, leaving you debt free as long as you maintain your monthly payments and keep to the terms of the agreement.
Contact Debt Plan Direct or call us on 0845 055 8152 |
