Step 1: Your financial situation will need to be reviewed with a debt advisor. The debt advisor will work our how much you are able to offer your creditors and whether the IVA is likely to be accepted. If the debt advisor agrees that hte IVA is right for you then they will draft up a statement of affairs to be passed to the Insolvency Practioner (IP) that will represent your case to the creditors

Step 2: The IP will draft a formal written proposal for your creditors. This will normally details all of your debts and the background to them. The IP should also explain the other options available such as bankruptcy in order to confirm an IVA is the right solution for you.

Step 3: Your creditors will receive the proposal and may accept it with or without modifications. If any changes are required, then the IP will get into touch with you to discuss the new details.

Step 4: The Creditors will hold a meeting and as long as 75%  of the value of the creditors who have responded to the proposal either in writing or in person accept, then the proposal becomes legally binding on all creditors.

Step 5: The court and all creditors are formally informed of the result of the meeting and the IP is normally appointed as the supervisor of the arrangement. S/he will monitor monthly cintributions, supervise the disposal of any assets and fulfil any other requirements of the creditors.

Step 6: Maintain your monthly payments into the IVA for the length of time agreed which is usually 5 years.

Step 7: Once these and any other terms of your arrangement have been fulfilled, you will be free from your debts, and any oustanding debts will be written off.