questions to help me decide what is best

[Kopite_in_australia]

Good Morning,



I'm now close to deciding that my best option maybe looking at going down the route of getting an IVA. With some creditors not agreeing to proposals I have put forward, my options are limited.



Would you please answer the following questions, which will help me decide what is best:



1. If i ask you to look at an IVA agreement and my creditors disagree with this proposal, will it automatically push my creditors to force me into bankruptcy?



2. Once an agreement is set up with my creditors, can my creditors change the terms and conditions ? Example: Change agreed balance to pay off or amount of monthly payments.



3. Can the balance of the IVA be cleared during the agreement if I came into some money? Example: Lottery win (Can dream)



4. How does an IVA effect my chances of future credit once it has been settled?



5. I believe it effects my chances of future credit up to six years, Does this six years start from the IVA being taken out or after the five year term to clear it?



6. I believe if I go ahead with setting up an IVA, you will contact my creditors. I won't need to do anything?



7. Will an IVA be kept confidential, between you and my creditors only? Concerned that my landlady and work will find out.



Look forward to reading your responses to these questions.



Regards

[MelanieGiles]

Hi there - do you live in Australia?

Assuming you are based in the UK, I can answer your queries in the same order they are raised:-

1 If more than 25% of your creditors disagree with the proposal the IVA will be rejected, but this does not necessarily mean they will force you into bankruptcy proceedings. The majority of your creditors would much rather pursue you for payment outside of formal proceedings.

2 Your creditors can only change the terms of your IVA if asked to vote upon revised terms. But your IP can increase your payments if they feel you have more surplus income.

3 If you receive a windfall during the IVA then this money has to be declared to your Supervisor and handed over to repay creditors to the extent of the full amount you owe, statutory interest which runs at 8% per annum and any outstanding costs.

4 Your credit rating will be impaired for six years from the date your IVA is accepted by creditors.

5 See above!

6 Correct - but you will need to keep dealing with creditor enquiries until the IVA is in place.

7 Your IVA will be registered on the Insolvency Register which is a publicly available register for anyone to check which is easily accessible on the internet. It is rarely used by landlords or employers, but you cannot rule out the fact that they may find out.

Hope this all helps!