Where the debtor suffers a reduction in disposable income during the life of the IVA, the supervisor may exercise his or her discretion to reduce monthly contributions by up to 15%, provided this is clearly stated in the terms of the original IVA proposal and provided the reduction in disposable income is verified. If this discretion is exercised, creditors are informed of the decision in the first annual report following the reduction in contributions.
(more…)Where the debtor enjoys a substantial increase in income arising from overtime, bonus payment or commission payment which was not included in the original calculation of disposable income, there is an obligation to disclose this fact to the supervisor of the IVA and to adjust the monthly contributions appropriately.
(more…)Losing one’s job when in an IVA can be worrying for the debtor and his or her family. If there is a real prospect of gaining new employment within a reasonable period of time, the debtor can seek to obtain the agreement of creditors to allow a payments break, sometimes also called a payments holiday or a payments freeze.
(more…)The Insolvency Service which administers and investigates the affairs of bankrupt persons has issued two new guidelines summarising changes in policy which will make bankruptcy a much less attractive option for insolvent persons in the future.
(more…)If the new Irish government – widely expected to be a coalition of the Fine Gael and Labour parties – implement the recommendations of the Law Reform Commission (LRC) in relation to personal debt (Personal Debt Management and Debt Enforcement report published in December 2010) they will also have to very quickly address the draconian and utterly out of date Bankruptcy Act 1988.
(more…)It seems like a contradiction in terms to use the word ‘savings’ in the context of an IVA. However, not only is it possible to save in an IVA it is often essential! The truth is that most IVAs are based on monthly contributions for a term of five years, more or less.
(more…)A creditor may seek a judgment against a debtor in an Irish court for non-payment of a debt when such payment is overdue. Where such a judgment is awarded, interest is automatically applied at the statutory rate of 8%.
(more…)It will fall to the new Irish government – widely expected to be a coalition of the Fine Gael and Labour parties – to enact new personal insolvency legislation in Ireland. The Green party has been credited with recognition of the void in Irish law in this area and with pushing the Law Reform Commission to finalise its proposals for change.
(more…)If you are insolvent and are considering entering into an Individual Voluntary Arrangement (IVA) you may be concerned that your partner, who may be unaware of your financial difficulties, will learn of your difficulties.
(more…)If you think that you may be insolvent but are unsure what to do about it here is a simple five step process that describes what you will need to do if you are to enter into an Individual Voluntary Arrangement (IVA).
(more…)It would be an exaggeration to claim that Bankruptcy is more popular than ever. One only has to consider the pain that bankrupt persons must endure in terms of stigma, loss of credit facilities and loss of property, including family homes. Nevertheless, judging by the latest list of bankruptcy orders, it seems that in Northern Ireland almost every occupation, trade & profession has been adversely affected by the recession with the possible exception of the candlestick maker. Students, unemployed persons and those who are retired have not escaped either.
(more…)A significant policy change in the way that the Official Receiver (OR) deals with a bankrupt’s interest in the family home is being rolled out. Hitherto, where there was little or no equity in the property, the OR was quite amenable to disposing of the bankrupt’s interest by accepting a nominal sum (often just £1) plus transaction costs (a few hundred pounds) from the bankrupt’s spouse or family or a friendly third party and so enabling the property to be re-vested in the bankrupt.
(more…)The most obvious reasons why creditors reject some proposals for IVAs include (in the case of HMRC) non-compliance by the debtor (such as recurrent failures to make S/E returns); preferential treatment by the debtor of some creditors to the detriment of other creditors; recent debts incurred by the debtor with a relatively new creditor; the likelihood of substantially higher returns for creditors if the debtor was to enter a DMP rather than an IVA, particularly if debts could be repaid in full in a DMP in ten years or less. There are some less obvious reasons.
(more…)The first thing that creditors look for in an IVA proposal is the truth. They expect the debtor to be open, frank and honest. After all it is their money which is at stake and if a debtor is seeking their agreement to write off a large percentage of their liabilities via an IVA, the least they expect to see in the proposal is the truth, the whole truth and nothing but the truth.
(more…)Firms which offer insolvency services such as Individual Voluntary Arrangements (IVAs) or other financial solutions do so because it is a business and because they have an expectation of making a profit from the business. If they do not make a profit, ultimately they go out of business. In the last two years in particular, a number of IVA providers have ceased to trade for this very reason.
(more…)In the lead up to an insolvency process, it is important that the debtor ensures that he behaves honestly, honorably and fairly in his or her dealings with all other parties who may be affected by the process.
(more…)A Debt Relief Order (DRO) is similar to bankruptcy in so far as it affords relief to a debtor who is insolvent but who has little or no disposable income and few if any assets. The relief of a DRO is currently available in the UK.
(more…)A person’s credit file is a list of all types of credit that he or she has been given and the history of repayments made. The list includes bank overdrafts, loans, credit cards, mortgages and HP borrowings. If the person has been issued with a County Court Judgment, or has been made bankrupt, or has been in an IVA, or has had property repossessed, or has been subject to debt collection activities or has been involved in fraud, the credit file will record it.
(more…)If you overspent at Christmas, don’t worry – you are not alone. Millions of people in the UK and Ireland have done exactly the same with most of them depending on credit cards and store cards to see them through the festive season. January is the month of reckoning and the bills are beginning to come in. Here are a few ideas to deal with payment, if you are struggling with your finances.
(more…)If you have personal unsecured debt that you are considering using an IVA for, you should bear in mind that any assets that you have may be incorporated into the IVA.
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