In order to have an Individual Voluntary Arrangement (IVA) officially set up, you will need to acquire the services of a qualified accountant or lawyer, formally known as an insolvency practitioner. As such, you will need to convene a meeting between yourself and a licensed professional, and there are a number of financial documents you will need to prepare and bring to your initial consultation with them.
The following page will outline which documents and pieces of financial information you will need to prepare and take to your consultation with your insolvency practitioner.
Documents you’ll require
When you first call an insolvency practitioner to try and arrange a meeting to discuss your acquisition of an IVA, they’ll usually specific which financial information and documents you’ll have to provide them with. This will usually consist of:
- Financial documents that confirm how much you earn, such as your latest bank statements, payslips or welfare documents from the government sent to you in the post.
- Evidence of how much money you have put away in a savings account, such as the bank statement for any ISA’s you might have.
- Information about your housing costs, such as the amount you spend on your mortgage or pay to your landlord each month on rent.
- Comprehensive disclosure of the assets you currently possess, such as your vehicles and properties. This should also include an official valuation of these as well.
- Full set of information about the loans you have against your name at the moment and the lenders you owe them to- this includes the total amount that you owe from your debts, the name of the lenders you owe them to, and all supporting documents which provide evidence to legitimise these disclosures.
- A monthly finance plan which clearly highlights all your areas of expenditure and income as well as providing an estimation of how much disposable income you have available each month to use for your IVA payments.
It is imperative that you ensure that all of these documents are prepared and brought to your consultation with your insolvency practitioner, so that they can make an accurate value judgement about the suitability of an IVA to your situation.
Your monthly finance plan
When preparing all your relevant documents for your consultation with your insolvency practitioner, you should make sure you also create a monthly finance plan which clearly identifies how much you spend and earn each month. You can then utilise this information to ascertain how much disposable income you have available to use to make IVA payments each month and can make an insightful value judgement about whether setting up is truly beneficial to you.
Tell the truth
Telling your insolvency practitioner the truth about your finances, assets and current situation will make their job easier and will prevent you from encountering potential problems for breaching IVA regulations later on down the line. Remember that if you withhold some key information about yourself in your meeting with them, then you might be given the green light to set up an IVA that you in reality cannot afford. This will simply substantiate and worsen your debt problems, and will likely result in the eventual collapse of your IVA and the start of bankruptcy proceedings against you.
It is also important you remember that it is a criminal offence to intentionally hold back or provide incorrect information about your situation to your insolvency practitioner in order to bolster your chances of getting your lenders to accept your IVA request. If you are found guilty of this, you could find yourself with a hefty fine and in some cases could even receive a custodial sentence.