An IVA is a formal agreement between you and your unsecured creditors to repay a portion of your debt over a limited period of time – usually five years, but it can be for a shorter period.
Creditors expect to receive the full contractual repayments on their secured loans over the life of the IVA and thereafter. If you have a mortgage, you will be expected to make the monthly mortgage payments to your mortgage provider in full.
Continue readingIf you are thinking about proposing an Individual Voluntary Arrangement to your creditors, you should be clear as to what debts must be included in the IVA proposal and which debts must be excluded.
Your Insolvency Practitioner (IP) will verify this for you but even before you take that first step of seeking advice you should be aware that not all debts can be addressed via an IVA. Some debts must be paid in full on an ongoing basis and you must make allowance for these when preparing your monthly household Income and Expenditure Statement. Continue reading
If you are insolvent and are considering entering into an IVA you may be worried about whether or not you can afford the fees involved with the process. This is understandable but it should not really be a concern. If the insolvency firm you are using for your IVA is any good at all then they should put this concern to bed quickly and assuredly. Continue reading
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
If you are having financial trouble and are having difficulty repaying your creditors, one of the debt solutions you are likely to become aware of is a Debt Management Plan. This is known as one of the big three debt solutions in the UK in terms of the number of people who use them. The other two are Individual Voluntary Arrangements (IVAs) and Bankruptcy. It is estimated that there are up to one million consumers in the UK currently in debt management plans with their creditors. Continue reading
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