IVA Glossary
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Supervisor
The term "supervisor" refers to an insolvency practitioner or another licensed person who is officially named by creditors to supervise an Individual Voluntary Arrangement procedure and its administration. The procedure is usually as follows. After creditors and other members of the "Creditors' meeting" have agreed with and have approved the IVA or CVA proposal of a debtor, supervisors are required to guarantee the adequate implementation of the IVA or CVA propositions of the debtors.
It should be noted that supervisors are the only persons that can deal with the debtors, so creditors are not allowed to contact the latter. This implies that the debtor also has to address his or her IVA supervisor and not his/her creditor with any issue regarding his or her case. The supervisor, in turn, has the power to call and arrange a creditors' meeting if that is needed. Supervisors are also responsible for collecting the required IVA contributions from the debtor, allocating them to the corresponding creditors, and keeping a record of payments.
Generally speaking, an Individual Voluntary Arrangement Supervisor will have to keep a track of the entire process, and has to monitor and make periodic reviews regarding any changes of the debtor's financial situation, changes in his or her total income and total expenses. The supervisor also decides about the appropriate monthly instalment towards the IVA which is acceptable by both parties. He or she has to report each year all these facts to the creditors who are involved. The supervisor is also responsible for dealing with any infraction of the Individual Voluntary Arrangement's terms.
Finally, IVA Supervisors may also be responsible for including any kind of asset a debtor has into the IVA. For instance, if a supervisor manages to include the debtor's savings or equities in a house into the IVA, this ensures the success of the respective individual arrangement. He or she also has to include any unexpected or sudden gains or funds of the debtor into the IVA. This way the Supervisor can manage to make the IVA a successful and well-negotiated agreement both for the debtor and for the creditors, which can end in a successful conclusion of the agreement.
It should be noted that supervisors are the only persons that can deal with the debtors, so creditors are not allowed to contact the latter. This implies that the debtor also has to address his or her IVA supervisor and not his/her creditor with any issue regarding his or her case. The supervisor, in turn, has the power to call and arrange a creditors' meeting if that is needed. Supervisors are also responsible for collecting the required IVA contributions from the debtor, allocating them to the corresponding creditors, and keeping a record of payments.
Generally speaking, an Individual Voluntary Arrangement Supervisor will have to keep a track of the entire process, and has to monitor and make periodic reviews regarding any changes of the debtor's financial situation, changes in his or her total income and total expenses. The supervisor also decides about the appropriate monthly instalment towards the IVA which is acceptable by both parties. He or she has to report each year all these facts to the creditors who are involved. The supervisor is also responsible for dealing with any infraction of the Individual Voluntary Arrangement's terms.
Finally, IVA Supervisors may also be responsible for including any kind of asset a debtor has into the IVA. For instance, if a supervisor manages to include the debtor's savings or equities in a house into the IVA, this ensures the success of the respective individual arrangement. He or she also has to include any unexpected or sudden gains or funds of the debtor into the IVA. This way the Supervisor can manage to make the IVA a successful and well-negotiated agreement both for the debtor and for the creditors, which can end in a successful conclusion of the agreement.
