An advisor should be used to determine which debt solution is best for you. There are quite a few out there that may fulfill your needs. An advisor will inform the debt holder of their debt solution options. These may include debt management, bankruptcy, re-finance, debt consolidation, or an IVA, among others. The advisor is also used to draft a proposal.
If it is determined that an IVA is your best option then the Insolvency Practitioner becomes the Nominee. Once the terms of the proposal have been written by the advisor, the IP’s role as Nominee is to review the proposal and report on it.
A chairman then holds a meeting with the creditors and the debtor in an attempt to approve the proposal. At this stage it is very common for both sides to revise the advisors proposal and make necessary modifications. As a debtor, the creditor may require that you don’t seek any new debt, and typically there is a clause in there that states if three or more payments are missed then the debtor has defaulted and bankruptcy is looming.
If the IVA is approved then IP becomes a supervisor for the creditor, debtor and the court. The IP must report on a yearly basis to each of these parties. The main role of the Insolvency Practitioner is to monitor the agreement and make sure the debtor is in compliance with all terms and conditions.