Are you thinking about going for an individual voluntary arrangement (IVA)? In that case, you need an Insolvency Practitioner who can review your financial circumstances and draft an IVA proposal.
A qualified Insolvency Practitioner is an accountant who passes numerous rigorous tests to provide insolvency services. They are qualified professionals who deal with all sorts of insolvencies like company liquidations, corporate insolvencies, bankruptcies as well as Individual voluntary arrangement.
Role of an Insolvency practitioner in an Individual Voluntary Arrangement or IVA:
The Insolvency Practitioners play two different roles in an IVA.
- Primarily he is a nominee where he acts on behalf of the debtor.
- The Insolvency Practitioner acts as a supervisor of the IVA and negotiates a proposal between the debtor and creditors to settle debt.
- He collects relevant information like the detail of credits, profile of creditor, details of the borrower to put forward a suitable IVA proposal in an IVA Creditors’ meeting.
- The insolvency practitioner changes his role provided that the creditors accept the proposal at the meeting
Till now, the Insolvency practitioner was acting on behalf of the debtor but after the proposal is accepted by the creditors,
- he becomes a supervisor and administers the IVA on behalf of the creditors. An IVA supervisor upholds the proposal throughout tenure of the IVA.
- they also track if the debtor is making payments regularly and abiding by the IVA schedule.
While administering the IVA the Insolvency Practitioner actually represents the creditors. He produces a periodical assessment report on the financial status of the debtor to the creditors. This helps them to keep a track of the IVA schedule so that if there is a problem, they can immediately report to the creditors.
