An IVA debt solution often lasts 5 years or more, that can be a long time to expect nothing to change in your financial circumstances. However, there are usually quite a number of flexible options to consider during your IVA that you can look at with your Insolvency Practitioner (IP). Usually, a supervisor or supervision team looks after your ongoing IVA, you will probably need to contact them to discuss flexible options in detail.
Occasionally, consumers in an IVA experience problems in their IVA that can't seem to be sorted, this guidance highlights the flexible options available and how you can go about resolving problems with your IP.
Check your IVA Terms
Understand your Obligations
Review your Options & Rights
The Role of your Insolvency Practitioner
Your ongoing Affordability
Were you advise properly before entering an IVA?
Check completion/termination of your IVA
During the COVID-19 Pandemic
Guidance has been introduced that allows for flexibility to be applied to IVAs which are already being supervised & were drafted in accordance with the current protocol or previous versions by the IVA Standing Committee & new IVAs that are drafted from 20 April 2020. The guidance applies until 20 October 2020.
Any COVID related debt and/or income shock should be fully explained in the IVA proposal
Income from government backed financial support schemes can be included as income in an IVA proposal
Existing IVAs - Temporary Extended Terms for the Straightforward Consumer IVA Protocol
Up to 25% reduction to repayments for 3 months if suffering a COVID related income shock and/or sudden expense (details will need to be give to your IP about the inability to pay)
The 3 month extension is additional to the standard repayment holiday terms but must not exceed 12 months in total (any repayment holidays agreed will be payable in the future)
Critical workers are excluded from the protocol’s overtime rule during the COVID pandemic
IPs have discretion to suspend the issue of Breach notices
IPs have the discretion to not take a redundancy payment in excess of 6 months net pay into account
IPs must not realise a consumer’s home equity during the pandemic unless the consumer agrees to proceed