Sentences with word «iva»

An IVA is set up and managed by an insolvency practitioner.

Instead, you would have to make 12 months extra payments into the IVA.

If you do not qualify for a DRO, there may be other options for dealing with your debts such as bankruptcy, a debt - management plan or an IVA.

An IVA is a legally binding arrangement to pay back part of what you owe over a set period (usually five years).

Insolvency practitioners» fees can be expensive and they may want some payment in advance.It is worth asking them for an initial free meeting to discuss whether an IVA is appropriate.

An individual voluntary arrangement (IVA) is a formal arrangement to repay your creditors part of what you owe and can be a way of avoiding bankruptcy.

It is also important to be sure that an IVA is actually the most relevant form of debt solution to you as there are some people whose situation will not be best suited to such an arrangement and who would be better off with a different debt solution.

An individual voluntary arrangement (IVA) is a formal agreement, between you and your creditors, to pay back part of what you owe over a set period (usually five years).

There may be some cases where an IVA is suitable even if you don't meet these criteria.

In certain circumstances, for example you have an IVA that has failed, your creditors do not have to serve you with a statutory demand before making you bankrupt.

An IVA may be suitable if you have at least # 15,000 total debt, at least two different creditors and you are able to pay back at least 10p in every # 1 to your creditors.

If the creditors who are owed 75 % in value of your debts, who choose to vote, agree to accept the proposal then the IVA is put in place.

In order for you to set up an IVA you need to find yourself an insolvency practitioner, these individuals are normally accountants or lawyers with a specialised qualification that allows them to deal with insolvency.

Both bankruptcy and an IVA may be options available to you if you can't pay your debts as they fall due.

You can do this outside of your IVA and simply use the money gained to help with your living expenses or you can do this within your IVA and use the money to contribute towards your monthly repayments.

If you do an IVA with an IP that does not follow the protocol, your house may be at risk of being sold.

If the IVA lasts longer than six years it will remain on your credit report until the date the IVA ends.

If you were to ask an IVA advisor «who can enter into an IVA», more often than not, they'll tell you that you must owe # 15,000 or more in unsecured debts, have three or more creditors and that you can afford to pay # 200 towards your unsecured debts each month.

At least 75 % of your creditors (by amount of debt, not number of creditors) have to accept the proposal in order for the IVA to be approved.

It doesn't matter how much your current monthly payments are, you will only be expected to pay what you can reasistically afford into the IVA, which is the amount you have left over after your essential monthly outgoings have been accounted for.

If your creditors are not prepared to accept that the reasons you've given for failing to keep up with your payments are justified then they may require your IP to fail your IVA.

You can read more about IVA fees here.

Because the total amount you pay back during the IVA is likely to be significantly less than the original amount of debt you had, you'll sometimes see the IVA described as free to the consumer.

Whilst this view is understandable (how can you have a negative fee), it's still important that you understand fees are involved for two important reasons; in case you benefit from a significant windfall during your IVA or in case your IVA fails (see who pays the IVA fees for more information).

If your IVA fails then your debts will be reinstated less any payments received by the creditors (this is the sum total of payments you've made up to that point less any fees your creditors have agreed to give your IP).

The amount of money you're pledging to return to your creditors over the life of the IVA must achieve the minimum creditor dividend (this is amount of money the creditor receives as a percentage of the total amount of debt that is owed).

An IVA is a legally binding agreement between you and the people you owe money to.

An IVA will affect your credit rating as it will stay on your credit file for six years from the date your IVA passes (this is typically one year after your IVA has been completed).

The truth is that none of these are legal criteria for entering into an IVA.

Very broadly, your creditors will receive around 80 % of the total amount you pay into your IVA with your IP receiving the other 20 %.

Technically, you have written off more than # 13,000 because part of the # 12,000 you paid into the IVA went towards fees.

This is why we will only suggest an IVA to you if it suits your financial circumstances and you feel you can commit to living to an agreed expenditure for five years.

In this example, the IVA client was able to get 55 % of their debts written off.

After consulting a debt help agency I was put in touch with Payplan and thereafter they arranged for me to enter into an IVA.

# 11,000 of the client's total debt was written off at the end of their IVA.

If this happens, all of your unsecured creditors, whether they voted yes, no or didn't vote at all, are legally obliged to abide by the terms of the IVA agreement.

If your IVA fails, you'll be back to square one having paid fees (at that point, the only option realistically available to you will be bankruptcy).

This means that your creditors will receive around 80 % of the total amount you pay into your IVA with your IP receiving the other 20 %.

At this stage, they ignore your unsecured credit commitments (personal loans, credit cards etc) as these are the debts that the IVA will tackle.

If you have equity in your home but are unable to remortgage then your Supervisor may ask you to continue with your IVA payments for another twelve months.

Very broadly (not accounting for VAT), the first 5 payments you make go to your IP for setting up your IVA.

Essentially, your creditors are agreeing to accept less money back in order to pay your IP (this is why there's no such thing as a cheaper or better IVA; even if your IP charged lower fees, the difference would go to your creditors, not to you).

However, if your creditors don't agree that your reasons are valid then the IVA will fail and the IP may initiate bankruptcy proceedings.

It's worth noting however, that over 90 % of variations are successful - your creditors don't want to see your IVA fail anymore than you do as the alternative is usually a lower return for them in Bankruptcy.

Your IVA payments will be proportionately reduced to account for any increase in mortgage repayments.

You will only be asked to do this if you have more than 15 % equity in your property (banks have traditionally not lent money in excess of 85 % of the property's value), if the amount being released was above a de minimis value (i.e. your IP usually wouldn't expect you to remortgage to release less than # 5,000) and if your IP believes you can afford the repayments (see IVA Remortgage).

If you are able to demonstrate that you have legitimate reasons for not being able to continue to make the agreed monthly payments (such as having your working hours reduced), your Insolvency Practitioner (IP) can approach your creditors to vary the amount you pay each month or the length of the IVA.

If your circumstances change during the IVA and you are able to repay your debt in full (for example winning the lottery, receiving PPI compensation or seeing the equity in your home appreciate sharply), then you will be liable for paying the fees in addition to the debt.

The monthly repayment cost of the remortgage is affordable for the client (any increase in mortgage payment will be subtracted from your monthly IVA payment and will not exceed 50 % of the payment into the IVA).

Priority debts and priority debt arrears can not be included in your IVA.