An insolvency practitioner (IP) is an individual licensed and qualified to advise and act on behalf of a person using an insolvency solution, as well as a business or partnership. To become an IP and hold a license they must pass JIEB (Joint Insolvency Examinations Board) exams and gain relevant experience before becoming assigned to a regulator, who then monitors their actions and ensures they are following the law.
IPs generally work as accountants or within an accountancy firm, offering consultancy services to businesses and individuals going through a serious debt management solution.
According to PayPlan, when it comes to an IVA, an IP will assist the individual in first discerning if the debt management solution is best for them, by looking carefully through their finances and then putting together a proposal.
An IVA is an insolvency solution that is ideal for those who owe more than Â£7,000 in â€˜problem debtâ€™ and are unable to make the minimum monthly repayments â€“ but still have at least Â£50 in disposable income to contribute towards a repayment schedule. Within six years, those taking on an IVA could be debt free, as long as repayments are made on time.
Once it is confirmed that an IVA is the best route for the person seeking a way out of debt, it is imperative that an IP is given all the correct information at the start. That way they can accurately assess the individual. It is in the interest of those taking on an IVA to ensure the right paperwork is handed over to allow the IP the best chance of securing a beneficial arrangement.
Once the proposal is written up, the IP sends this to the creditors owed money, which suggests the terms and amount the person seeking an IVA can pay. It is then a case of waiting for the creditors to respond. 75% of those owed money must agree to the terms of the proposal sent over by the IP. If the proposal is rejected, the IP can challenge this.
An IP takes away any pressure from a person who owes money to multiple creditors. This ensures negotiations are fair and legal and are there to provide a solution to a difficult situation.
Throughout an IVA, the person making repayments must stay in touch with their assigned IP, who must be notified if their circumstances change. This means everything from a pay rise at work to a significant windfall must be declared and the IVA arrangement amended accordingly, to ensure the right amount is being paid. An IP may ask that up to 50% of any surplus funds are added to your IVA repayments.
An insolvency practitioner is there to assist you when taking on a serious debt solution. If you are undertaking an IVA, ensure you seek out their advice, provide them with the correct information and get back on track with your debts as quickly and seamlessly as possible.
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