Does your IVA contracts change between years 1-5 ?

Galeeno

The contract you have with an IVA company (the debtor) and the IP, and the IP and the creditor,

are these 2 separate contracts ?

and within these 1-5 years, can these contracts change every 1-1 year, on the annually meeting ?

(like some sneaky iva companies change it) and how can this be avoided ?

rabbit_burrow

Galeeno wrote: »

The contract you have with an IVA company (the debtor) and the IP, and the IP and the creditor,

are these 2 separate contracts ?

and within these 1-5 years, can these contracts change every 1-1 year, on the annually meeting ?

(like some sneaky iva companies change it) and how can this be avoided ?

A) The debtor is YOU, not the IVA company. The IP is a person who works at the IVA company, not a separate entity as such.

No, they are not separate contracts.

This is what happens (if I have missed something, I'm sure someone will correct me):

1. You seek help

2. You decide (after deliberating very carefully on which route to take) to take an IVA

3. You contact the IVA company or charity, you will be assigned a supervisor (your IP)

4. Your IP (who works for your IVA company/charity) will discuss everything with you and send you an income and expense form to fill in & send back to them

5. Your IP will draft a proposal, and send it to you to agree to - this is the time to contact them if they have anything wrong. The proposal sets out how much you can afford & will pay, and what the terms of the agreement are (I.e, you agree to pay x amount for x months, and to remortgage to release equity a year before the IVA is due to finish, and anything else relevant to your own situation)

6. A date is set for your creditors to vote on the agreed proposal

7. You find out if it has been accepted or not

8. Assuming it is accepted as it is, your name, DOB, address etc will be put onto the Insolvency Register where any member of the public can search & find you, and you will receive a review pack every year, where you must put your income & expense figures

9. If the difference between the income & expense is more than a nominal amount, you will pay more into the IVA, your IP will contact you about this

10. If you receive any bonuses/compensation (over and above your losses)/windfalls etc then you must inform your IP & pay it into the IVA.

11. During the term of your IVA, your creditors are entitled to 100% of your debt, for example, if you owe £30K, but they have agreed on a proposal to accept just £20K, and then you get inheritance/win the lottery etc, you will have to pay it back up to the value of the debt.

12. PPI claims will be entered into the IVA

13. When the IVA has finished, you make your last payment, your IP will start to close your IVA (it is slow at the moment due to the PPI thing & VAT thing which only occurred at the end of 2011 so they are dealing with a backlog - new IVA's shouldn't be affected by this backlog)

14. You will receive a certificate (the same one that is sent to the court) - the court will process the closure, and your name will show on the Insolvency Register with the status updated to 'closed', your name will be remain on the Register up to 3 months after your IVA closes, then it will be removed.

15. Upon receiving your certificate, and the court updating the closure of your IVA, your creditors will have no legal recourse for the remainder of your debt (it is written off).




If at any point during the IVA you 'default' or do not comply with the agreement in any way, you will be Bankrupted.

Vikipollard

Don't really understand the question here. My contract did get varied as the company I started with sold out to another firm, but it didn't affect what I paid.

If you mean can they increase how much you pay, then yes they can if your income increases, unless you can show that your expenditure has increased by a similar amount.