The role of the IVA Drafter
Anyone who has looked into an IVA as a solution to their debt problem will, sooner or later, hear a reference made to the IVA drafter.
So, for those wondering what an IVA drafter does, here's a brief description of their role in the IVA application process, along with some of their duties and responsibilities.
Who Is The IVA Drafter
The IVA drafter's role is crucial to the IVA process, the importance of which is often overlooked.
The drafter is usually an employee of the Insolvency Practitioner, working within the Insolvency Practitioner's practice, although in smaller businesses it could feasibly be the Insolvency Practitioner themselves.
The IVA drafter is the person entrusted with drafting the IVA proposal, which will be passed to the creditors at the Creditors' Meeting.
Their duties include:
- Verifying documentation:
Initially, the drafter will be responsible for ensuring that the applicant's documentation has been provided. The documents are used to identify the individual and to confirm their financial circumstances are best served by entering an IVA.
- Communication with applicant:
It is the drafter's role to liaise with the client at this early stage to confirm they are willing to enter an IVA voluntarily and without duress. They will also discuss the suitability of each available debt solutions, to confirm the applicant understands their options and hasn't been railroaded.
- The SIP 3 call:
The drafter will arrange what's referred to as the 'SIP 3' call. Having this call is a legal requirement of the IVA process and helps the drafter become familiar with the applicant's circumstances. The SIP3 call is usually informal in nature, and provides an ideal opportunity for the drafter to become more familiar with the applicant's personal circumstances, the history of their financial problems and any other aspects of the case that may have a material impact on the application.
- Check property valuations:
The drafter will seek to establish the level equity an applicant might have within any property they own. In most cases this will be via an internet valuation, but in instances where this method proves ineffective, the drafter may request that the applicant provides a written valuation for this purpose.
- Drafting the proposal:
The responsibility of drafting proposal is not to be underestimated, as it forms the crux of the IVA application. It details the proposed agreement to be issued to creditors and without it the IVA could not exist.
- Book the Creditors' Meeting:
The drafter will contact the Court and schedule the Creditors' Meeting and inform the applicant of the meeting date.
- Notify creditors of the Creditors' Meeting:
Once the Creditors' Meeting has been scheduled, creditors are informed of the meeting date and given a copy of the IVA proposal on which they will be required to vote.
In all, it usually takes a week or two for the drafter to complete this process, depending on how quickly the applicant can produce the necessary paperwork.As you can see, the drafter's role is crucial to the successful outcome of the IVA and if you have a good drafter it shows.
Creditors receive clear and accurate information and are far more likely to trust the information within the proposal if it is presented correctly.
Remember, the drafter is your friend. In a nutshell their job is to make sure the proposal they prepare truly represents your personal circumstances, so it pays to be mindful of this when you're talking to them.
Whilst it may feel somewhat intrusive, it's in your interests to furnish your drafter with the information they need to enable them to present your case as accurately as possible.
If you're considering entering into an IVA you should have a chat with the team here at IVA.info.
We're IVA specialists, dedicated to helping people like you get the best levels of advice and receive the very best levels of service as possible.
With our help you could soon be on the road to financial freedom.
To make an IVA application, simply call 0800 088 7502 now, where on of our advisers is waiting to talk to you or, if you prefer, complete this form and we'll call you back at a time that suits you.