IVA calculations have become much more straight forward since the introduction of the ‘IVA Protocol’.
In essence, an IVA calculation is used to establish what your IVA payments are likely to be.
It used to be the case that each creditor had an almost unique stand point on IVA’s, making the IVA payment calculations almost impossible to work out without first having a full list of the creditors.
Not so long ago all creditors had different requirements as far as minimum payments into an IVA were concerned. So, your IVA calculation would depend on who you owed your money to.
For instance, in the past, HSBC required a minimum dividend of 40p in the pound before they would consider accepting an IVA, whereas MBNA required a special set of payment conditions to be met before they would accept an IVA.
But the good news for IVA applicants is that these differences have been removed by the ‘IVA Protocol’
The ‘IVA Protocol’ is a set of guidelines introduced to simplify the IVA process, making the IVA easier to administer and, therefore, less time consuming for each Insolvency Practitioner.
Creditors agreed to produce of a common set of minimum requirements and, in return, Insolvency Practitioner’s agreed to significantly lower their fees.
If you are just trying to establish whether or not an IVA is affordable for you, why not try The Debt Calculator. It will generate a personal debt report for you and help you understand the options available to you.
Alternatively, call one of our specialist advisers on 0800 088 7503 and they will be able to help you calculate how much your IVA payment is likely to be.
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