The role of the IVA Supervisor
For those people who are considering an IVA as a solution to a serious debt problem, there's the possibility that they will hear the term 'IVA supervisor' whilst doing their research.
So here's a brief explanation of the IVA Supervisor's role within the IVA process.
IVA Supervisor
The term IVA Supervisor relates to the role played by the Insolvency Practitioner (IP), once the IVA Creditors' Meeting has been approved.
The IVA Supervisor is appointed to administer the IVA on behalf of the IVA applicant and their creditors, to ensure all the terms and conditions of the IVA are being adhered to by all parties.
Supervisor's duties
The role of the IVA Supervisor includes the following duties:
- Communication with creditors:
The Supervisor deals exclusively with the creditors on behalf of the IVA applicant. Under the terms of the IVA, the creditors are precluded from contacting the IVA applicant to discuss repayment of their debts. So all correspondence must now be addressed to the IVA Supervisor. - Gather proof of debt:
The Supervisor establishes the actual level of debt to be repaid by the IVA by requesting proof of the debt from creditors. The supervisor then ensure each creditors receives the correct level of repayment through the IVA. - IVA payment distribution:
The Supervisor collects the IVA contributions from the IVA applicant and distributes the relevant amount to each creditor. - Inclusion of assets:
The Supervisor is responsible for ensuring all assets are dealt with as agreed in the IVA proposal, particularly equity, in a property. To this end, the IVA Supervisor will place a restriction on property at the Land Registry, to ensure they're notified of the property's sale being sought without their prior knowledge or agreement. - Liquidation of assets:
The Supervisor is responsible for the liquidation of endowment policies, shares and savings vehicles that have been surrendered into the IVA. - Windfall clause:
The Supervisor is responsible for the collection and inclusion of any additional unexpected funds, such as overtime payments or a windfall. - Annual reviews:
The annual reviews are undertaken by the Supervisor, where household income and expenditure is reassessed to establish whether the IVA payment should be adjusted. - Variation meetings:
The Supervisor will be responsible for the calling of any Variation Meetings that maybe required, where variations to the original IVA proposal need the approval of the creditors. - Payment breaks:
Payment breaks can be given at the sole discretion of the Supervisor, if they feel the payment break is justified and in the interests of all parties. - Payment reductions:
Payment reductions can be given at the sole discretion of the supervisor, if they feel the payment reduction is justified and in the interests of all parties. - IVA breaches:
The Supervisor monitors the IVA for breaches to the terms and conditions as agreed in the proposal. In extreme cases, creditors can provide instruction to the supervisor to petition for bankruptcy in the event of none compliance. - completion certificate:
On the successful conclusion of the IVA, the supervisor will issue the 'Certificate of completion', bringing the IVA to a close and ensuring the IVA finishes correctly.
The Supervisor's role is key to the IVA process as they retain a neutral position for the duration of the agreement.
They are tasked with the administration of the agreement and, as a result, can often be seen as unhelpful.
Many IVA candidates feel the Supervisor sides with the creditors, but this is a slightly mistaken view. the truth is the supervisor is responsible for ensuring the adherence to the IVA terms on all parties.
IVA Professionals
The team behind IVA.info are IVA professionals and we have a very experienced team waiting to help you.
So, if you're exploring the option of entering an IVA and would like to have a chat with a dedicated IVA adviser, simply give our helpline a call on 0800 088 7502 or, alternatively, complete this form and one of our advisers will call you at your preferred time.
