An IVA is a payment scheme to your creditors usually lasting 5 years. ALL of your disposable income is paid out. Your assets remain untouched but there is usually a clause in year 4 to realise the equity in your home to meet the balance or near to it. Your IP will meet with your creditors and propose how much you can afford to pay, they will then vote yay or nay. The first few years of your payments are usually paying the IPs fees, so asking to settle to early, you may be surprised to still owe the agreed amount. They are tough and you have to declare every little windfall for the 5 years including overtime. If there is no equity in the home after 5 years then they will probably continue for another year. Your credit rating is dammaged much the same as BR and our IVA friends appear alongside us on the Insolvency Register.
How does an IVA work
Posted - 25 November 2008 : 20:04:34
