Once the IVA has been approved, your Insolvency Practitioner will then take on the
role of IVA Supervisor. Up until this point, the IP has been acting solely on your
behalf to set the IVA in place. However, now it changes to cover both you and your
creditors. Their role is to ensure that the IVA runs smoothly for both parties by
managing the agreement for both sides.
The IVA Supervisor has a number of specific jobs designed to ensure that everyone
keeps to the arrangement:
Any dealings you would have had with your creditor now
stop. You no longer have to pay them directly. Instead, you will make your agreed
repayment directly to the IVA Supervisor. They will then hold this money in an account
designed for this purpose and use it to pay back the agreed amount to each creditor
every month. It means that you are only making one payment to one person.
All correspondence must be with the supervisor. If there
are any problems which come up, the creditors cannot simply call you up. They are
no longer allowed to contact you directly, but must go to the supervisor who will
deal with any queries on the debtors behalf.
Any additional payouts you may get - whether it's overtime
payment or a lump sum through an inheritance - will be dealt with by the supervisor.
Rather than you having to decide who you pay back with it, the supervisor will be
able to allocate it proportionately to your creditors on your behalf.
The supervisor will keep your creditors informed about
your financial situation so you don't need to worry about telling them. The supervisor
conducts regular reviews of your finances and sends the creditors a report on this
Any breaches will be dealt with by the supervisor. If
an issue does arise, the creditors do not chase you. It is now the job of the supervisor
to pursue a petition for bankruptcy if the IVA fails.
Once the IVA has ended, the supervisor is in charge of
ensuring all the loose ends are dealt with. They will administrate the closing of
it and send a final report to the creditors.
So, after the IVA is set up, all you have to do is make sure you are repaying the
required amount each month. The IVA Supervisor does the rest.