{"id":10739,"date":"2011-02-10T16:00:11","date_gmt":"2011-02-10T16:00:11","guid":{"rendered":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/?p=10739"},"modified":"2019-08-01T16:54:55","modified_gmt":"2019-08-01T15:54:55","slug":"do-an-iva-with-no-assets","status":"publish","type":"post","link":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/do-an-iva-with-no-assets\/","title":{"rendered":"Do an IVA with no assets"},"content":{"rendered":"\n

Anybody can offer proposals for an Individual Voluntary Arrangement (IVA) to their creditors provided they are insolvent. It is not necessary to own a home or indeed any other asset such as a car or boat. Your IVA proposal may be based on offering a lump sum or regular monthly payments from your income. If you do not have a lump sum to offer and you have no substantial assets then you need to have some level of regular disposable income to offer to them.<\/p>\n\n\n\n\n\n\n\n

Disposable income is the money you have left over when you have paid \nall reasonable living costs both for yourself and for any dependants you\n may have. The amount of disposable income you have will depend entirely\n on your circumstances. Income comprises your take home pay from your \nemployment, any benefits you may receive (such as disability benefit or \nsocial welfare benefits), pensions, tax credits, dividends, child \nbenefit, rental income (from a lodger, for example) and so on. \nReasonable living expenses will for example include the cost of rent, \ncouncil tax, utilities such as water, gas and electricity, food, \nhousekeeping, telephone and mobile, TV & internet, life insurance, \nhouse insurance, vehicle running costs (HP, fuel, parking, car \ninsurance, road tax, repairs and servicing), clothing and footwear, \noptical dental and medical needs and all the normal costs incurred in \nsupporting your family.<\/p>\n\n\n\n

\"Working<\/figure>\n\n\n\n

Obviously if your reasonable living expenses use up all of your \nincome, then you will be left with no disposable income and thus you \nwill have nothing to offer your creditors in an IVA. On the other hand, \nif you have a reasonable amount of disposable income and your debts are \nnot excessive, creditors can expect to be paid a reasonable dividend in \nyour IVA. The fact that you are not a homeowner should not have any \neffect on the attitude of your creditors when they consider whether to \naccept your IVA proposals or to reject them. If you were to be made \nbankrupt, creditors would generally receive a much lower dividend and in\n many bankruptcy cases they receive no dividend at all. If you have no \nassets it may be that bankruptcy is a more attractive option for you \nthan an IVA would be and you should consider the pros and cons of both \nsolutions before deciding on your course of action.<\/p>\n\n\n\n

Creditors have indicated what they consider to be reasonable living \nexpenses for debtors proposing an IVA, whether they are single, married \nor co-habiting, with or without children. They provide guidelines for \nhousehold expenditure and they expect debtors to conform to these \nguidelines. If a debtor has unusual or extraordinary expenses, creditors\n expect to see compelling arguments for allowing such expenses in an \nIVA. There is no satisfactory definition for what creditors would deem a\n reasonable dividend. It really does depend on the amount of the debts \nand the amount of disposable income that the debtor has. Remember an IVA\n is generally geared to people with debts in excess of \u00a315,000. It would\n be difficult to gain the approval of creditors for an IVA if the \nmonthly disposable income was less than \u00a3200, but there are exceptions.<\/p>\n\n\n\n

While there is no minimum dividend required by law for an IVA to be \nproposed, creditors nowadays have great difficulty in accepting IVAs \nwhere the estimated dividend is lower than 25p in the \u00a3, although in \nexceptional cases they may accept a much lower dividend than that.  Some\n creditors set their minimum acceptable dividend much higher, perhaps as\n much as 40p in the \u00a3. A few creditors have a policy of rejecting all \nIVAs with which they are presented out of hand and without explanation. \nWhile this seems unfair to the insolvent debtor, thankfully such \ncreditors are in a minority and unless they hold over 25% of the debts, \nthey can be outvoted by the other creditors who may be happy to accept \nthe IVA proposal. Each case is assessed on its own merits. At least 75% \nof voting creditors must accept your IVA proposal for it to be approved \nand creditors take many factors into account in making their decision \nwhether to accept or reject. If you do not own a home, it should not \ndiscourage you from offering an IVA to your creditors and it should not \nbe a barrier to their acceptance of your IVA.<\/p>\n","protected":false},"excerpt":{"rendered":"

Anybody can offer a proposal for an IVA regardless of whether or not they have assets.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[7],"tags":[],"class_list":["post-10739","post","type-post","status-publish","format-standard","hentry","category-iva-articles"],"_links":{"self":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/10739","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/comments?post=10739"}],"version-history":[{"count":1,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/10739\/revisions"}],"predecessor-version":[{"id":10749,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/10739\/revisions\/10749"}],"wp:attachment":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/media?parent=10739"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/categories?post=10739"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/tags?post=10739"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}