The role of the IVA Drafter
Anyone exploring the IVA option will sooner or later hear reference to the IVA drafter.
So, for those wondering what an IVA drafter does, here's a brief description of their role, along with some of their duties and responsibilities.
Who Is The IVA Drafter
The IVA drafter's role is crucial to the IVA process, and their importance is often overlooked.
The drafter is usually an employee of the Insolvency Practitioner, although in smaller insolvency practices it could feasibly be the Insolvency Practitioner themselves.
The IVA drafter is the person entrusted with drafting the IVA proposal, the legal document that outlines the IVA agreement, which is provided to the creditors prior to the Creditors' Meeting.
Their duties include:
Verifying documentationInitially, the drafter will be responsible for ensuring that the applicant's documentation has been provided. The documents are used to identify the client and to confirm their financial circumstances are best served by entering an IVA.
Communication with applicantIt is the drafter's role to liaise with the client at this early stage, to confirm they remain willing to enter an IVA voluntarily and without duress.
The SIP 3 callThe drafter will arrange and complete what's referred to as the 'SIP 3' call. This call is a legal requirement of the IVA process and provides an ideal opportunity for the drafter to become familiar with the applicant's personal circumstances. They will also discuss the suitability of each available debt solutions, to confirm the applicant understands their options and hasn't been mis-advised.
Check property valuationsThe 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 the applicant provides a written valuation for this purpose.
Drafting the proposalThe responsibility of drafting the proposal is not to be underestimated. The proposal 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' MeetingThe drafter will schedule the Creditors' Meeting and inform the applicant of the meeting date.
Notify creditors of the Creditors' MeetingOnce the Creditors' Meeting has been scheduled, creditors are informed of the meeting date and given a copy of the IVA proposal on which they are invited to cast their vote.
In all, it usually takes a week 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 a successful application and if you have a good drafter it shows.
Creditors are far more likely to trust the information within the proposal when it is well presented.
The drafter's job is to make sure your proposal truly represents your personal circumstances, and it pays to be mindful of this when you're talking to them.
Whilst the process 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 are exploring the IVA option and would like to have a chat with an advisor, just call 0800 856 8569 where we are waiting to help you.
Or, should you prefer, complete this form and we'll call you back at a time that suits you.