The Chair will hold the creditors` meeting and negotiate with the debtor and creditors to approve the proposal. It is customary for creditors to request changes to the proposal at the meeting. Common changes proposed by the major banks include limiting the debtor to obtaining credit, guaranteeing an increase in payments when the debtor`s income increases, indicating a minimum yield of 40 pence in sterling and insisting that the supervisory authority does not meet the IVA if the debtor misses 3 or more payments and the debtor`s bankruptcy claims. Any refunds will be paid directly to the judicial administrator. You will distribute the money to your creditors. A portion of this amount is retained by the Judicial Administrator for the payment of the fees. If the IVA is approved, the judicial administrator appointed as the responsible in the approved IVA becomes the supervisor of the IVA. These include annual reports to creditors, the debtor and the court. It also includes monitoring the debtor`s compliance with the terms of the agreement, approving creditors` claims, payment of payments to creditors and, more generally, ensuring that the agreement progresses in accordance with the terms of the proposal. The debtor must meet all reasonable supervisory requirements, which may include the regular provision of bank statements, accounts, work tickets, etc.
Directors have a legal obligation to act properly and responsibly and to put the interests of their creditors first. Risks associated with winding up a business may include disqualification from the activity of director of other companies, as well as personal reputation as a director. In extreme cases, directors may be personally considered to be subject to assessment for erroneous payments to creditors. However, since a voluntary agreement of the company is in the interest of creditors, there is no investigation into the director`s conduct. If you receive an individual voluntary agreement, it will be mentioned in your credit report. Your credit score will decrease because this figure is based on information in your report. A lower score means you may have trouble borrowing money.