Can I keep a car in an IVA?

If you are insolvent and are considering offering proposals for an IVA to your creditors you need to consider the implications for your transport needs, particularly if you already have a car or other vehicle. The first question you must ask yourself is whether you need a car in the first instance. Creditors may ask this question and you should be prepared to answer it. Provided it is essential for the normal transport needs of your household or for getting to and from work, creditors usually have no objections to your retaining a car for these purposes. Continue reading

Balloon payments in an IVA

Not all lenders financing car HP agreements allow their customers to enter into an IVA. Some lenders have clauses written into their HP agreements specifically prohibiting borrowers from offering IVA proposals to their creditors on pain of the HP agreement being nullified and the car being immediately subject to repossession, in the event that the borrower breaches their HP agreement in this way. Continue reading

What Insolvency solution should I do?

When faced with serious financial difficulties, the debtor may have various options suggested to him by friends, family or other colleagues in whom he may have confided. Or it may be that his bank manager, one or more of his creditors or his business colleagues suggest what he should do, again assuming that they are aware of his financial circumstances. As in any important decision making process, it’s best to avoid plumping for what might seem an attractive solution at first and the well-meaning but sometimes erroneous advice of friends or colleagues. Continue reading

IVA and Bankruptcy statistics

Back in 2012 we noticed a significant swing away from bankruptcies and towards Individual Voluntary Arrangements or IVAs. It is interesting to look at what has been happening since then and particularly whether that trend has been sustained. The short answer is that it has and the numbers of individuals choosing bankruptcy continues to decline sharply. Continue reading

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

How does an IVA work?

Like many experiences in life, you can’t really know how an IVA works unless you experience it for yourself. And because no two IVAs are exactly alike, each experience is also unique in many ways. Various analogies are quoted such as fingerprints, snowflakes and DNA. From a distance they all look the same, yet they all differ. However there are some certainties if a you are to successfully complete an IVA and come out at the other end with a fresh start, debt-free and solvent again. Continue reading

Why creditors might reject your IVA

Incorrect financial information

Creditors take it for granted that you are truthful in your IVA Proposal about your current financial circumstances and how they arose. They expect you to be open, frank and honest and to disclose all relevant facts about your income, expenses, assets and liabilities. If a creditor is aware that you are hiding some important fact about your insolvency they then they will be dubious about the IVA proposal as a whole and be likely to reject it. Continue reading

Couple With Debts

When a couple decides to live together, they usually do it for reasons of love and the last thing on their minds is the financial status of their partner. Because love is often blind each partner may bury their heads in the sand in regard to the other’s financial stability at least for the time being. This can be a big mistake. There is much evidence to suggest that debts are a major problem for couples who decide to co-habit or get married and can be a significant cause of subsequent separation and divorce. Continue reading

Using credit before an IVA

If you suspect that you may be insolvent, you might be considering entering into an IVA or even petitioning for your own bankruptcy. Certainly if you have been defaulting on repayments of unsecured loans and if you have only been able to make minimum payments on your credit cards or store cards, there is a good chance that you are indeed insolvent. One definition of insolvency is the ‘inability to repay your debts as and when they fall due’. Continue reading