{"id":1240,"date":"2013-12-17T11:27:06","date_gmt":"2013-12-17T11:27:06","guid":{"rendered":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/?p=1240"},"modified":"2019-01-30T11:31:06","modified_gmt":"2019-01-30T11:31:06","slug":"iva-and-benefits","status":"publish","type":"post","link":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/iva-and-benefits\/","title":{"rendered":"IVA and Benefits"},"content":{"rendered":"\n

To offer an IVA to creditors, a debtor must be insolvent and be able to make contributions to the IVA to settle debts and to pay the administrative costs of the arrangement.<\/p>\n\n\n\n\n\n\n\n

Such contributions may consist of a lump sum \u2013 as for example the proceeds of sale of a property or equity released via re-mortgage or moneys provided by a family member \u2013 or simply be regular payments from disposable income. A combination of lump sum and regular income-based contributions is also possible. <\/p>\n\n\n\n

\"Disposable<\/figure><\/div>\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. Your income for example will be comprised of \nyour take home pay from your employment, benefits, pensions, tax \ncredits, dividends, child allowances, lodger rental and so on. \nReasonable living expenses will for example include the cost of mortgage\n or rent, council tax, utilities such as water, gas and electricity, \nfood, housekeeping, telephone and mobile, TV & internet, life \ninsurance, house insurance, vehicle running costs (HP, fuel, parking, \ncar insurance, road tax, repairs and servicing), clothing and footwear, \noptical dental and medical needs, as well as all the normal costs \nincurred in supporting your family.<\/p>\n\n\n\n

Insolvency is not confined to people who are in employment. People \nwhose income is comprised solely of benefits may find themselves to be \ninsolvent and unable to pay their debts as they fall due. Can such an \ninsolvent person enter into an IVA? The resounding answer is YES!<\/p>\n\n\n\n

Provided there is a reasonable level of Disposable income available, \ncreditors cannot reasonably exclude such a debtor from utilizing the \nsolution of an IVA. In fact creditors have considerably softened their \nstance in recent years and have adopted a more inclusive attitude \ntowards debtors whose income is benefits based. A reasonable yardstick \nto use is that DI is at least \u00a3200 per month. If the benefits are means \ntested then it may be difficult for the debtor to have this amount \navailable. If the benefits are not means tested then there is more \nlikelihood that the Disposable income will reach at least this level.<\/p>\n\n\n\n

Creditors may still exercise their right to reject your IVA proposal \nparticularly if the level of your debts is high and the dividend is low.\n However, creditors are aware that if you were to be made bankrupt, they\n would generally receive a much lower dividend and in many bankruptcy \ncases they receive no dividend at all. From their perspective, half a \nloaf is better than no bread. To find out about all of your options, \nincluding that of an IVA, contact a reputable Insolvency Practitioner \nfor advice.<\/p>\n","protected":false},"excerpt":{"rendered":"

To offer an IVA to creditors, a debtor must be insolvent and be able to make contributions to the IVA to settle debts and to pay the administrative costs of the arrangement.<\/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":"","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[7],"tags":[],"class_list":["post-1240","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\/1240","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=1240"}],"version-history":[{"count":2,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/1240\/revisions"}],"predecessor-version":[{"id":1252,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/1240\/revisions\/1252"}],"wp:attachment":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/media?parent=1240"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/categories?post=1240"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/tags?post=1240"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}