Once you approach IVA to help you take control of your debt and avoid bankruptcy, the terms and conditions of IVA and the acceptance of the proposal by your creditors follow.
IVA drafts your proposals based on the financial information provided by you, your credit score and other factors. IVA sends your proposals to the creditors to whom you owe money. The creditors can suggest changes to the proposals, and if you agree for the changes, it can be modified accordingly. The final proposal needs to be confirmed by you and IVA. If more than 75% of your creditors vote in favour of the proposal, then the proposal will be put on roll. If it is rejected, there is the possibility of rephrasing the proposal.
You will then enter into an agreement with creditors and IVA to pay monthly instalments as repayment for the total amount you owe to your creditors. This will be for a five year term. After successfully making payments for sixty months with defaulting, you will be free of debt. Once you enter into the IVA agreement, you will be protected against any further collections actions from any of the creditors involved in the agreement.