savings in an IVA

[bentley.v]

a friend has an iva. are they allowed to have any savings, or would the ip deem these as funds which should go to creditors

also what is the general rule of thumb for working out a settlement figure,(early end to iva)

[Adam Davies]

Hi
If you are already in an IVA then,as long as you declare all income and any change in expenditure,you can save what ever you can.Any savings prior to an IVA are to be declared to your IP and may form part of the IVA.
The best way to work out a full and final setlement is to add up the remaining payments and deduct 1k for each year that is left to run on the IVA.
If there is a fourth year equity release clause then the above formula will not work and you will need to take advice from your IP as equity will have to be released or covered.
I have written an article on early settlements,located on the left hand side
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

I generally use achieving the dividend that you originally pledged, but if there is property involved then this will need to be also valued as Andy has correctly pointed out.

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