The first question that enters anyone’s mind when considering an Individual Voluntary Arrangement is: “How much will I have to pay towards my IVA ?”
Quite simply, each IVA is unique as the payment for each is based on affordability for the applicant. Even two clients with the same debt level could easily be asked to pay two different IVA contributions.
So, how do you find out the true figure you will be expected to repay? After all, some IVA companies will simply tell you exactly what you want to hear, i.e. the bare minimum.
They would simply look at the level of your debt and calculate the minimum repayment that will allegedly ‘guarantee’ the IVA being acceptable to your creditors.
However, IVA payments that are calculated like this are rarely realistic or accurate.
Creditors will not agree to a low IVA repayment without real justification, especially when they will have the chance to vote against an IVA at the Creditors Meeting if they think the applicant can afford more.
The Insolvency Practitioner has a duty to ensure the IVA offers a realistic and provable repayment to creditors.
But it is the responsibility of the IVA applicant to ensure their IVA payment is affordable, and not set too high.
Here at My IVA Adviser, we take great steps to ensure IVA payments are affordable to the applicant before we approach the Insolvency Practitioner for approval.
This protects the applicant from the stress and pressure of surrendering too much to the creditors at a time when they are most vulnerable. An IVA’s payments normally last for 5 years so, in our opinion, having your payment set too high must be avoided at all costs.
Take this link to find out how we calculate your IVA payment.
If you are not sure whether an IVA is a suitable option for you why not try The Debt Calculator, or alternatively call My IVA Adviser for free on 0800 088 7503 anytime to speak to an IVA specialist.
For a full explanation of an IVA click here.
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