The debtor must find a person who is prepared to act as Nominee for him/her in relation to the IVA. That person should, in the opinion of the Court, have suitable experience and qualifications to perform the duties as Nominee (usually accountant or solicitor).
The debtor is required to prepare for the intended Nominee a Proposal on how he/she will repay his/her creditors. The contents of the Proposal as detailed in Rule 122C (2) of the Bankruptcy Rules are set out in Schedule 1. Subject to the agreement of the intended Nominee, an application to the Court for an Interim Order can be made.
The debtor must also submit an up-to-date Statement of Affairs to the Nominee. If the debtor is an undischarged bankrupt and has already lodged a Statement of Affairs in the bankruptcy proceedings, he/she needs not submit a further Statement of Affairs unless required by the Nominee.
    a. Upon the Court making an Interim Order, there is a 14-day period during which no bankruptcy or other legal proceedings may be taken or continued against the debtor without the permission of the Court.
    b. Where the debtor is an undischarged bankrupt, the Interim Order may contain the Court's directions on the conduct of the bankruptcy and the administration of the estate during the period for which the order is in force.
    a. At least 3 days before the expiry of the Interim Order, the Nominee must submit a report to the Court stating whether in his opinion a meeting of the creditors should be held to consider the Proposal and if so, the date, time and place of the meeting.
    b. After receiving the Nominee's report, if the Court is satisfied that a meeting should be held, the Court can extend the Interim Order for a further period so that the Proposal can be considered by the creditors.
At the creditors' meeting, the creditors will decide whether or not to approve the debtor's Proposal, with or without modifications. Since modifications require the agreement of the debtor and may involve substantive negotiations between the debtor and the creditors, it is essential for the debtor to attend the creditors' meeting. The approval or modifications of a Proposal at a creditors' meeting requires a majority in excess of 75% in value of the creditors present in person or by proxy and voting on the resolution. If the Proposal is approved at the creditors' meeting, it will bind every creditor who had notice of and was entitled to vote at the meeting whether or not he was present or represented. The Chairman of the meeting must submit a report to the court within 7 days of the meeting.
The debtor, the creditors, the Nominee, and in the case of an undischarged bankrupt, the Trustee or the Official Receiver may submit an application to the Court to challenge the decision of the meeting within 28 days after the submission of the Chairman's report to the Court.
The Chairman of the meeting must report the details of the approved IVA including the name, Hong Kong Identity Card Number and address of the debtor, the date on which the IVA is approved by the creditors, and the name and address of the Nominee to the Official Receiver. A register of IVA is maintained by the Official Receiver for public inspection.