questions about an iva

[m.w]

1) what if any extra money comes your way after the agreemant is settled at a repayment price.
2) what happens if you lose your job or are made redundant during the 5 year period.
30 what happens if you fall ill and can't work during the 5 year period.
4) what happens if you apply for an IVA and the creditors say NO....then what happens.

[aguise]

Hi Mw welcome
Will try to answer
1. Depends on your proposal and what has been agreed, generally 50% of any overtime and bonuses etc have to be paid in. Windfalls,inheritance etc is also taken. An iva is to pay as much as possible back to creditors. These extra payments do not reduce the time or payments they ar just extra paid back.

2. You may be able to have a break while you look for another job and then resume payments after, but most proposals only allow for an extra 12 months, otherwise the iva will fail if you do not make payments and you will be back to square one.

3. The same as above.

4. Then you are in the same position as when you started , you could consider a debt management plan or bankrupcy. If you try for an iva be sure to check out two or three companys. The ones on this site are or good. A lot depends on your disposable income and the quality of the proposal as to what may be acceptable also some creditors expect a certain level to be paid back.

First and foremost you have to be insolvent ( have more going out than coming in) to be suitable for an iva .

Hope this helps.

Please correct me anyone if you think I am wrong anywhere.

Ang

[MelanieGiles]

Hi mw and welcome to the forum

1 You are still subject to the windfall provisions until the IVA has concluded.

2 If you are going to request a formal payment break, to enable you to find work, then this can only be done with the express agreement of your creditors at a newly convened meeting to review your revised proposals.

3 If you lose your income through illness, then the IVA may have to be brought to an early conclusion. This is unlikely to result in bankruptcy proceedings against you unless you have assets which could be realised to repay creditors. Most likely, the IP will ask your creditors to accept what they have already received in full and final settlement.

4 As Ang has stated above, you then are left with the choice of bankruptcy proceedings or a Debt Mangagment Programme.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk