Once the IVA has been approved the case then moves over to the Supervisory or Post Appointment part of the IVA Company. The case will be allocated to someone who will then be your main point of contact throughout the period of the IVA.

The Supervisor is responsible for acting as liaison in the IVA process between you and your creditors. A minimum of an annual review should take place for every IVA. During the annual review the Supervisor must check to see whether your material financial circumstances have changed. For instance if you are earning significantly more income then the Supervisor will want some of that money to increase the return to creditors.

One of the Supervisors other roles is to inform the creditors if the terms of the IVA are not being adhered to. In the event that a significant change in your circumstances occurs then the Supervisor can recommend the creditors accept an IVA “Variation Order” to change the material terms of your IVA. However if you fail to maintain the terms of your IVA – principally a failure to make the IVA payments – then the supervisor should seek to terminate the IVA and recommend commencement of bankruptcy proceedings to the creditors.

The average period of an Individual Voluntary Arrangement is five years. Many things can happen during that period of time to affect the smooth running of an IVA. If you are already in an IVA and are experiencing any difficulty, or are unsure of certain elements of your IVA contract, then you should contact your IVA Supervisor immediately for advice. If you are thinking about an IVA as the solution to your debt problems then you should be aware that these contracts should not be lightly entered into.

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