Before you enter an into an IVA, you must understand the agreed terms and let the insolvency practitioner know if there are any changes with your situation.
IVA or Individual Voluntary Arrangement is a form of insolvency. It is a legal arrangement between your creditors that enables you to pay a portion of your debt within a fixed period. After making all the necessary payments, all the remaining debt is written off. Also, when you’re on an IVA you must abide with the terms to avoid failing on your IVA.
IVA is available if you’re living in England, Wales and Northern Ireland. For residents of Scotland, a similar insolvency measure applies through a protected trust deed. Though this debt solution is similar it differs in term of benefits, risks and costs attached to it.
Managing An Individual Voluntary Arrangement
Here are the frequently asked questions that will help you deal with your IVA:
What happens if there are changes with my circumstances?
It is important that you let your IVA provider or Supervisor know in case there are changes in your circumstances. These can be changes that involve progress in your financial situation or changes that can negatively impact our ability to satisfy IVA payments. Whatever changes it maybe you have to keep your Supervisor informed about it.
What happens if I miss payments on my IVA?
Missing payments may imply breach on your IVA terms. If you can’t afford payments, you have to let your IVA Supervisor know about it as soon as possible.
Can I claim PPI on an IVA?
How can I budget when on an IVA?
While you’re on an IVA, you’ve already considered managing your finances. This is followed by living within your means and sticking on your IVA budget.
Though it might be easy to create your budget, putting it in action can be hard especially when you have to cut unnecessary expenses.
How can I manage my finances better?
Aside from managing your essential living costs each month by creating a realistic budget. Your budget also enables you to manage your annual costs. This can be organized by categorizing expenses into three breakdowns:
- Regular expenses or payments -IVA payment, mortgage or rent, council tax and etc
- Daily expenses – food and other daily essentials
- Expected costs or emergencies – repairs and other unexpected expenses, occasions foresaw
You can open a separate basic bank account to cover the annual costs, so it won’t rip you off the time it’s due.
Review regular payments under Direct Debits
It is ideal to set up for Direct Debits to ensure that you don’t miss certain payments. Also, it can prevent you from spending the money allocated for these costs.
Moreover, you must review your regular payments and see if there’s an option wherein you can pay for the costs much cheaper. An example is finding a supplier that can give the same service at cheaper costs. In fact, there are options for you to save on gas and electric as well as water bills.