analysis of the debtor's income (A) and expenditure (B). From this, the debtor's disposable income is calculated (A)−(B) and this will become the amount that will be paid into the IVA periodically (usually monthly). The period is usually five years, but can be any length. The proposal will usually state that if the disposable income increases during the term of the IVA, the amount to be paid will also increase proportionately. A background history explaining how the debtor's financial difficulties arose. Details of any assets that are to be realised or excluded. For example, how the matrimonial home will be dealt with, pension schemes, share save schemes, vehicles, etc. The ability to call future meetings of creditors in the event that circumstances change, to modify the terms of the IVA. Restrictions on obtaining credit. This is because a debt incurred after the approval of the IVA could result in a bankruptcy petition from a creditor, which would almost certainly cause the IVA to fail. Chairman The Chairman will hold the meeting of creditors and negotiate with the debtor and creditors to approve the proposal. It is common for creditors to ask for modifications to the proposal at the meeting. Common modifications put forward by major banks include restricting the debtor from obtaining credit, ensuring payments increase if the debtor's income increases, specifying a minimum return such as 40 pence in the pound, and insisting that the supervisor fails the IVA if the debtor misses 3 or more payments, and petitions for the debtor's bankruptcy. Supervisor If the IVA is approved, the insolvency practitioner named as supervisor in the approved IVA becomes the Supervisor of the IVA. This involves reporting annually to the creditors, debtor and the court. It also involves monitoring that the debtor is complying with the terms of the arrangement, agreeing creditor claims, making payments to creditors and generally ensuring that the arrangement progresses in accordance with the terms of the proposal. The debtor must comply with all reasonable requests of the supervisor, which may include periodically providing bank statements, accounts, wage slips etc. See also Administrations Administrative receiverships Bankruptcy Citizens Advice Bureau Company voluntary arrangement – the equivalent for companies Liquidations Personal Insolvency Arrangement – a statutory mechanism in Ireland Trust deeds – only available in Scotland Simplified individual voluntary arrangement Sole trader insolvency Notes External links Insolvency Service website Debt and money - Citizens Advice Bankruptcy