How to calculate your minimum IVA payment

Calculating an IVA payment has become much more straight forward since the introduction of the 'IVA Protocol' back in 2008.

Your creditors will expect to recover a minimum amount of your original debt through your IVA, so a calculation is used to establish what your IVA payments need to be set to reach this minimum level.

So long as you can afford at least that payment, your IVA has a good chance of being acceptable to your creditors.

Historical Problems

It used to be the case that each creditor had an almost unique stand point on IVAs, 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, effectively removing the chance of applying for an IVA from anyone where HSBC held more than 25% of their total debt.

MBNA, on the other hand, required a special set of payment conditions to be met before they would accept an IVA, strangling the IVA option from a different angle.

Introduction of the IVA protocol

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.

Our unique IVA slider

Since the introduction of the IVA protocol, all creditors who have sign up to the IVA protocol now, thankfully, conform to the same guidelines when it comes to calculating the IVA payments.

This has enabled the team behind My IVA Adviser to develop our unique debt slider, found on the side of each page of our site.

The slider calculates the relationship between the size of any given debt and the minimum IVA payment for that debt level.

Simply side the bar across until it displays your debt level and then read off the minimum IVA payment below.

Once you know you're able to afford the minimum IVA payment, why not see if your free debt report recommends an IVA for you. Just answer 12 questions and it'll generate an analysis of the alternative solutions for your personal circumstances.

Professional IVA Advice

My IVA Adviser are IVA specialists and we've helped thousands of people enter in IVAs.

If you would like to have a chat with one of the team here at My IVA Adviser, simply give us a call on 0800 088 7503 where we're waiting to help you right now.

If you take advantage of a free IVA consultation there will be no obligation to take our advice and our conversation will be held in the strictest confidence.

Alternatively, please complete this form and one of the team will call you at your preferred time

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In accordance with the Financial Conduct Authority's guidance, please follow this link if you would like to read a free guide about In Debt - Dealing with your creditors
To find out more about managing your money and getting free debt advice, visit Money Advice Service , an independent service set up to help people manage their money.

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