Role of the IVA Supervisor

Once an Individual Voluntary Agreement (IVA) has been granted, an IVA Supervisor will be appointed to oversee the IVA throughout its duration. The IVA Supervisor will usually be the Insolvency Practitioner involved in the case prior to approval.

Liaison

The role of the IVA Supervisor is to act as the liaison between the debtor and the creditor, meaning that the debtor does not need to have any dealings with those that are owed money. Contractually, the creditors cannot contact the individual directly, and therefore any correspondence is for the attention of the allocated IVA supervisor, who will also attend any review meetings on behalf of the individual.

Payment Collection

As the IVA Supervisor acts as the go-between, they are responsible for collecting the monthly payments and holding them in an account. The payments are then allocated to the creditors proportionately, depending on the amount owed to each individually. A receipt of all payments and credits is kept by the IVA Supervisor.

Financial Reviews

It is also the duty of the IVA Supervisor to inform the creditors of any changes to financial circumstances, and as such, is required to regularly review the finances of the individual. This review will usually occur annually and it is vital that the individual discloses any changes to their circumstances, be it a drop in income, or indeed a windfall, such as a lottery win or inheritance. Should an individual find themselves in a position whereby their income has dropped significantly to affect their ability to keep the IVA payments agreed, the IVA Supervisor may recommend to the creditors that an IVA Variation Order is applied. However this may not be accepted, and if the individual is unable to keep the contracted payments, then the IVA Supervisor will declare that the IVA has failed and recommend the commencement of Bankruptcy proceedings.

IVA Completion

Once an IVA has been completed successfully, the IVA Supervisor will administer the closing of the IVA and produce a report to feed back to the creditors. Any outstanding debt at this stage will be wiped clean, allowing the individual to have a fresh start.

For an individual in an IVA, the IVA Supervisor should be seen as a person to go to for any advice as they are ultimately there to ensure as much as possible that the IVA is adhered to and completed successfully.