The role of the IVA Supervisor
For those people who are considering proposing an IVA, 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.
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.
The role of the IVA Supervisor includes the following duties:
Communication with creditorsThe 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 debtThe Supervisor establishes the actual level of debt to be repaid by the IVA by requesting a 'Proof Of Debt' (POD) form from creditors. The Supervisor then ensures each creditor's claim is included in the IVA.
IVA payment distributionThe Supervisor collects the IVA contributions from the IVA applicant and distributes the relevant amount, or dividend, to each creditor.
Inclusion of assetsThe Supervisor is responsible for ensuring all assets are dealt with as agreed in the IVA proposal, such as the equity in a property. To this end, the IVA Supervisor will place a restriction on a property included in an IVA, to ensure they're notified by the Land Registry if that property is sold without their prior knowledge or agreement.
Liquidation of assetsThe Supervisor is responsible for the liquidation of endowment policies, shares and savings vehicles that have been surrendered into the IVA.
Windfall clauseThe Supervisor is responsible for the collection and inclusion of any additional unexpected financial gains, otherwise known as a windfall.
Annual reviewsThe annual reviews are undertaken by the Supervisor, where household income and expenditure is reassessed to establish whether the IVA payment should be adjusted.
Variation meetingsThe Supervisor will be responsible for calling any Variation Meetings that maybe required, where variations to the original IVA proposal need the approval of the creditors.
Payment breaksPayment 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 reductionsPayment 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 breachesThe Supervisor monitors the IVA for breaches to the terms and conditions as agreed in the proposal. In extreme cases, creditors can instruct the Supervisor to petition for bankruptcy in the event of none compliance.
completion certificateOn 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 plays a key role within the IVA process, as they must maintain a neutral stance for the duration of the agreement.
They are tasked with the administration of the agreement and, as a result, can often appear to be unhelpful.
Many IVA clients will develop a sense their Supervisor has a tendency to side with their creditors position rather more quickly than theirs.
The truth is that the Supervisor is acting as an intermediary and is tasked with ensuring that both parties stick to their side of the agreement.
If you would like to have a chat with one of our IVA advisors, just call our helpline on 0800 856 8569.
Alternatively, complete this form and one of our advisors will call you back at your preferred time.