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.
Their duties include:
- Verifying documentation:
It's the drafter's responsibility to verify the applicant's paperwork is present and in order. This will include checking photographic ID, bank statements, mortgage statements or, when relevant, tenancy agreements as well as information detailing the debt levels and the creditor contact information and reference numbers relating to the debts.
- Communication with applicant:
It's the drafter's role to liaise with the applicant at this early stage, to ensure the applicant has been advised appropriately and is aware of the other debt solutions available.
- The SIP 3 call:
The drafter will arrange what's referred to as the SIP 3 call. This is a legal requirement of the IVA process and helps the drafter become familiar with the applicant's circumstances. This call normally takes the form of an informal chat, but it gives the drafter an opportunity to ask any question and pick up the background to the applicant's story. They will then use this information, together with all the relevant documentation, to prepare the IVA proposal.
- Check property valuations:
As part of the drafting process, a valuation will be required for those cases where the applicant owns a property. The drafter will confirm the property valuation and compare against the outstanding mortgage balance to establish the level of equity.
- Draft the IVA proposal:
The responsibility of drafting the IVA proposal is not to be underestimated, as the IVA proposal forms the crux of the IVA application process. The IVA proposal is the document from which creditors will decide whether to accept the IVA or reject it.
- 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 My IVA Adviser.
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 7503 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.