When a pronouncement is already made saying that an IVA is appropriate for you, you will be questioned about your current financial situation. The information that you give will help to determine the amount you will be asked to repay, to which you will have to agree and when proposals are done, you must check it, verify and sign them and give them back to the Insolvency Practitioner.

The approval of an IVA will be determined by creditors who will be asked to vote on the arrangement be it positive or negative. It only requires one creditor vote in favor of the arrangement for it to be approved. But if a single creditor is not in favor of the IVA and are the holder of under 25% of the total of your debt, negotiations are then suspended until sometime in the future, at that point then the other creditors are called on to vote. Any creditor who opposes the IVA and hold over 25% of the totality of your debt, the IVA will be unsuccessful since it will be only approved once the 75% of the total debt is voted on. When the creditors do not vote, it’s implicit that they vote for it.

The IVA is legally binding provided that you carry on with the repayments. If the period of the agreement is done, you become free from debts not considering how much money was paid already. Throughout the entire period of the arrangement, your own financial condition will be appraised recurrently to know whether there are certain changes in it. The majority of IVA situations are founded on a single, monthly, affordable payment, within 60 months period of time. IVA scheme needs to be arranged by a certified and licensed IP who gives it to the creditors at the meeting. In a consumer IVA creditors are usually not present when a creditors meeting is being held since the majority of them opt to vote via mail or fax. The rules states that provided that 75% of the votes is for the acceptance of the proposal, even with or with the absence of modifications, the IVA is settled and is therefore legally binding on the involved, even if they did not vote.

Once the agreement is acknowledged, your IP's become the supervisor, monitoring its improvement and guaranteeing the terms as well as conditions are adhered well. The onus is on the debtor to pay over the agreed amounts to the IP and the IP then ensures payments are disseminated to the creditors according to the conditions laid out in the agreement with terms until the IVA ends.

Upon completion, the debtor becomes debt free although they might not have essentially fully paid their debts. Exceptional balances are on paper and the debtor becomes free to do a new financial beginning.