some questions about IVA

[helen.c]

*1 how long does an IVA take to come into effect (monthly payments etc),
*2 does it affect the credit rating on an address and the other people living there,
*3 would my car be seized as an asset? (worth about £3000 but essential for work and general transport)
*4 how does it affect any existing direct debit agreements such as mobile phone bill and car insurance?

[ivoriva]

1) depends on your IP/Company preparing the proposals. And how quick you can return neccessary paper work (such as bank statements, proof of income etc). Typically anything between 6-12 weeks.
2) No it is only registered against a name these days not an address. However, it might have some impact on a partner/spouse if you have a financial association with them at the same address - IE you have joint accounts/debts or have had in the recent past.
3) No, it is highly unlikely a car will be taken
4) It is likely you can continue existing arrangments like these, but it would be hard to replace them if you need too - IE car insurance, you may have to pay in a lump sum when its next up for renewal, mobiles - you probably wouldnt be able to apply for a replacement service if you cancelled your existing one. You would have to go PAYG.

[MelanieGiles]

Hi Helen and welcome to the forum

An IVA should take no longer than 6 - 8 weeks to prepare, providing there are no complications with your case - such as needing to effect a re-mortgage to extract equity. Your first payment into the IVA is usually due as soon as the IVA is accepted, and some IP's will ask you for the first payment to be made prior to the IVA to show good faith on your part. This should be refundable in the event that your IVA is not accepted.

All other points have been ably dealt with by Ivor!

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

[Adam Davies]

Hi
I think it,s safe to say that under an IVA you would be able to spread the cost of car insurance,I certainly had no problem doing this and would be interesting to hear other members views and experiences regarding this.
In bankruptcy it seems that you are unable to spread the cost.
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