This may be a stupid question, but I have seen lots of posts stating 'iva protocol'. What does this actually mean? The terms of my IVA seem to differ greatly from some of the posts on here. e.g I don't have the 10% rule on additional income, I split it 50/50. Is this common?
"Protocol Compliant" IVA in straightforward consumer credit cases
The Insolvency profession in conjunction with various creditors representatives has devised a form of IVA called a "protocol compliant IVA". In essence, provided that the deal which is proposed meets the criteria laid down by the creditors then it is likely to be accepted by the creditors.
Protocol compliant IVAs generally provide for the level of monthly income contributions to be fixed in accordance with Consumer Credit Counselling Service guidelines. If the individual owns their own home, this will need to be valued in the forth year of the arrangement and any equity in excess of £5,000 must be put into the pot by way of a re-mortgage, up to 85% of the property's value.
There are also certain requirements as to dividend payments and practitioner charges which must be met.
For a number of reasons (including the restrictions on practitioner charges), most protocol compliant IVAs are arranged via a small number of very large IVA companies. They are able to process such cases in volume, cost effectively, often without ever having met the client.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
I think Plastic Draft has answered it pretty much for you. You can actually down load a copy of the 2010 protocol but its pretty basic, its what you have signed up to that really matters.
I think most people dont realise that they dont have to agree with everything thats suggested to them!, but most IP's are giving you good advise on what creditors are expecting and what would be fair to you.
I guess its down to the individual IP's who are drafting it to decide whas good for their client.
Baldy
As far as I was aware, any IVA done after Feb 2008 was done via the protocol unless there were any complications.
The protocol changed again in 2010 but I think most are protocol compliant these days.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Thanks Mel, I thought they all had to use it unless there were circumstances that dictated otherwise.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
