Annual IVA review may affect payments

When you offer your creditors proposals for an IVA, they carefully consider whether your offer of payments is fair. They look at your income and your household expenditure and take into account any special family circumstances that may affect your family and that may impact on your ability to make the payments, such as a family member having a medical condition with special medication, dietary or care needs. Continue reading

Insolvency explained

If you are sick or injured, you don’t have to be a medical expert to know that you need to go to a doctor for treatment. You just instinctively know that you don’t feel well and that your GP will in all likelihood be able to help you. The process is simple: you go along to see your doctor. You describe your symptoms or condition, the doctor may ask you questions, may perhaps examine you, may initiate some tests, may offer you his or her diagnosis of your condition or injury, may prescribe medication or other treatment, may refer you to a specialist or a medical consultant or may send you to hospital. Continue reading

Mortgage Arrears

Falling into arrears with your mortgage payments is stressful. The stress arises from the fear of losing one’s home. The most common root cause of mortgage arrears is inability to pay caused by a reduction in income arising from loss of employment or reduced working hours or reduced pay rates. It can also be caused or aggravated by increases in mortgage interest rates and living costs. In a minority of cases, lifestyle may be a significant factor with addictions such as drink, drugs or gambling resulting in missed or late payments and ultimately mortgage arrears. Continue reading

IVA Guidelines

In our last article ‘IVA Living Expenses’ we looked at the approach creditors take in deciding whether to accept or reject your proposal for an IVA. In this article, we will look in detail at the IVA Guidelines or  Living Expenses Guide which most creditors claim to adhere to in making their decisions as to whether to allow each item of expenditure or not. Continue reading

IVA Living Expenses – Part 1

Many people surf the web to try and find out about IVAs before taking the plunge of going to see an insolvency professional. This is quite a sensible approach in so far as the understanding and knowledge gained will help the individual prepare for a deeper scrutiny of their personal finances, particularly if they are in financial trouble. Continue reading

Choosing What Bills Are The Most Important To Pay First

People have to live so in assessing which bills to pay first, one must consider the essentials of life – food and shelter.

Making sure you pay your priority debts comes before all your other debt payments and is regardless of whether you are getting pressure from your creditors. Your priority debts are paying for somewhere to live, food and drink, clothing and heat & light, your main necessities. Priority debts may also include your mortgage. So then you must aim to pay these bills first – the mortgage / rent, utility bills including heat, light and water, and of course food, drink and clothing. Even in a situation where there is insufficient income or money to pay all of the bills, these essentials of life must command the most attention from us or day to day living will become impossible. Continue reading