How Much Do I Have To Pay Into An IVA Each Month?

July 1st, 2018 by

One common question is “How much money do I have to put into an IVA each month?” Or “What are the monthly repayment contributions for an IVA?”

This page will help clear up this question for you and inform you of typical scenarios’ in relation to monthly repayments when in an IVA.

How Much Will I Pay Each Month?

The amount you pay each month will be dependent on what has been proposed by the insolvency practitioner and this will be based on the following:

1) The amount of income you have each month
2) Your outstanding debt level
3) The amount of creditors that will require monthly repayments

The short answer to this question is: “The amount you pay into your IVA each month is negotiable based on your own personal circumstances, you will not be asked to make payments that are unsustainable or unrealistic”.

Can I Pay What I Want Into My IVA Each Month?

The monthly repayments will be based on an assessment of what you can afford but it also has to provide the creditors with a certain amount of debt repayment to a level that they find acceptable taking into account your personal circumstances, it’s not something that comes down strictly to personal choice but it is something you will have some input into and the monthly repayments will be set at an amount that is sensible and sustainable for you.

What If I Wish To Pay Less Than What My Creditor Is Asking For?

One of the primary reasons for an IVA in the first place is to reach an agreement between the debtor (yourself) and the creditor (the people you may owe money to) in order to set a repayment schedule that works for everyone and legally protect you from being chased by the creditors’ directly for repayments and halt and bailiff actions or interest and charges that may have otherwise been added to the debt.

So in answer to this question you would have an IVA supervisor as a mediator acting on your behalf to manage all the debt repayments for the duration of the IVA, it is up to the supervisor to negotiate this on your behalf to acheive the most favorable terms possible for you and the creditor.

In short: once you are in an IVA this will not be your worry and would be a matter for you to speak to your Insolvency supervisor about. You are not alone with these issues once enrolled in an IVA.

What if the creditor asks’ for more money than I am paying currently?

When enrolled on an IVA the terms of the agreement are fixed and this is legally binding, meaning that the creditor has agreed to the repayments, however if there is any issue at all with repayments, it is a matter to be discussed with the insolvency practitioner (supervisor).

As long as you don’t break the terms of the IVA, there is no reason for you to worry, however if there are changes to your personal circumstances during the course of the IVA (such as a financial windfall or other change of situation, it is important to discuss this with your insolvency supervisor).

Considering An IVA?

If you are considering an IVA to help with your existing debts, feel free to contact us & we will arrange for a free debt assessment to see if an IVA is a good fit for you, we offer assessments on a confidential basis with total privacy.

An IVA has a range of benefits that come with it, such as the following:

Frozen interest and charges
No more hassle from creditors
Legally binding government supported debt solution
Consolidated monthly repayments
Writing off up to 75%-85% of debt.

To find out more about IVA’s see this page.

About Us

DebtSolve.UK is a trading style of DebtSolve.uk. Our friendly advisors are specially trained to look at your debt in a non-judgemental way and come up with a solution to help you become debt-free.

© Copyright 2018 DebtSolve.uk - All rights reserved.