Summary: This article aims to explain the role of the IVA supervisor and what they are responsible for.
When an individual takes the first step towards entering an Individual Voluntary Arrangement (IVA), they will usually discuss their options with an Insolvency Practitioner (IP) who will be able to advise on the best options available. Assuming an IVA is appropriate, the IP is responsible for meeting with the creditors involved and presenting the case. If the IVA is agreed, then an IVA supervisor is appointed to the case, and this is often the same IP.
The IVA supervisor and the creditors
Anyone in considerable debt is fully aware of the stress associated with constant phone calls and letters from creditors chasing payment. Once entered into an IVA, it is the role of the supervisor to liaise with the creditors so the individual dozens not have to, thus alleviating a lot of the stress associated with debt. If there are any changes to personal and financial circumstances, it will be the supervisor who will notify the creditors, and if necessary negotiate a change to the terms of the IVA.
The IVA Supervisor and finances
As the go between for the debtor and the creditors, it is usually the role of the Supervisor to collect the monthly repayment and pay the critics involved. They are responsible for ensuring the correct amounts are paid to the relevant creditor, as well as keeping receipts of all the payments.
The IVA supervisor and IVA reviews
The IVA supervisor is responsible for conducting regular reviews of the progress of the IVA with the individual. This is usually an annual review, but may be more often if there has been a change of financial circumstances. If there is a significant change, they will liaise with the creditors to propose a variation to the IVA to decrease, or increase, the monthly repayments.
The IVA supervisor at the end of the IVA
Once an IVA has been successfully completed, the supervisor will produce a report for all of the creditors involved and issue a certificate of completion. This will be sent to all of the creditors and also the Insolvency Register, so that the individual’s details may be removed.