{"id":12981,"date":"2012-03-12T16:32:00","date_gmt":"2012-03-12T16:32:00","guid":{"rendered":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/?p=12981"},"modified":"2020-04-27T16:35:53","modified_gmt":"2020-04-27T15:35:53","slug":"iva-with-no-assets","status":"publish","type":"post","link":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/iva-with-no-assets\/","title":{"rendered":"IVA with no assets"},"content":{"rendered":"\n

Even though you possess zero\u00a0property or assets, it\u00a0doesn\u2019t preclude\u00a0you from\u00a0suggesting\u00a0an Individual Voluntary Arrangement to your\u00a0creditors.\u00a0Anyone can present proposals\u00a0for an IVA to their\u00a0lenders provided they\u00a0are insolvent.\u00a0There’s no need\u00a0to\u00a0own a house\u00a0or\u00a0indeed\u00a0any other\u00a0property, for instance a motor vehicle\u00a0or a boat. <\/p>\n\n\n\n\n\n\n\n

Your IVA\u00a0offer can be centred around offering\u00a0a\u00a0lump sum payment\u00a0or\u00a0regular\u00a0monthly payments from your\u00a0earnings. The lump sum\u00a0might be provided by\u00a0your family or by a friend\u00a0who is willing to advance\u00a0such funds to you\u00a0to settle the money you owe\u00a0via\u00a0an IVA<\/a>.\u00a0If you don’t\u00a0have a\u00a0lump sum payment\u00a0to offer and you have no\u00a0substantive property then you need\u00a0to have some\u00a0amount of\u00a0regular disposable income to offer to your creditors.<\/p>\n\n\n\n

\"Do<\/figure>\n\n\n\n

Disposable or excess income is\u00a0the cash you have left over once you’ve paid\u00a0all\u00a0reasonable\u00a0living\u00a0expenses both for\u00a0yourself and for any dependants\u00a0you have.<\/em><\/p>\n\n\n\n

The amount of excess income\u00a0you\u00a0have is based entirely\u00a0on\u00a0your position. Income\u00a0comprises\u00a0your take home\u00a0pay\u00a0from your\u00a0occupation, any benefits\u00a0you might obtain for instance\u00a0disability benefit or social welfare benefits, pensions, tax credits, dividends, child benefit, rental income from a lodger\u00a0and so forth.\u00a0Realistic cost of living will include the cost of\u00a0rent, council tax, utilities\u00a0including\u00a0water, gas and electricity,\u00a0food, housekeeping, telephone and mobile, TV & internet, life insurance, house insurance,\u00a0car operating expenses\u00a0such as HP,\u00a0fuel,\u00a0parking,\u00a0motor insurance, road tax,\u00a0repairs\u00a0and\u00a0servicing,\u00a0clothing\u00a0and\u00a0footwear, optical dental and medical needs and all\u00a0the usual expenses borne\u00a0in\u00a0supporting\u00a0your family.<\/p>\n\n\n\n

Obviously\u00a0if it\u00a0takes\u00a0all of your\u00a0earnings to cover\u00a0your\u00a0fair\u00a0living\u00a0expenses then you will be\u00a0left with\u00a0simply no excess money and thus you’ll have absolutely nothing to provide\u00a0to your\u00a0lenders\u00a0in an\u00a0IVA.\u00a0Alternatively,\u00a0should you have a reasonable\u00a0amount of\u00a0excess income\u00a0and your\u00a0financial obligations are not excessive,\u00a0creditors can anticipate being paid a decent\u00a0dividend in your IVA.\u00a0The fact that you aren’t a homeowner shouldn’t\u00a0have any\u00a0effect\u00a0on the\u00a0frame of mind\u00a0of your\u00a0creditors whenever they contemplate whether to approve\u00a0your IVA proposals or to\u00a0decline\u00a0them.\u00a0If you were to\u00a0be made bankrupt,\u00a0creditors\u00a0would\u00a0in most cases receive afar lower\u00a0dividend than you can\u00a0offer\u00a0in an IVA.\u00a0Indeed, in many bankruptcy cases\u00a0lenders are given\u00a0no dividend\u00a0whatsoever.\u00a0Should you have\u00a0no\u00a0assets it can be\u00a0that bankruptcy is a\u00a0better option for\u00a0you than an IVA would be\u00a0and you should look at the disadvantages and benefits\u00a0of both\u00a0remedies before deciding on\u00a0your\u00a0course of action.<\/p>\n\n\n\n

Lenders\u00a0have\u00a0revealed\u00a0what they\u00a0consider\u00a0to be\u00a0fair\u00a0living expenses for\u00a0individuals\u00a0proposing an IVA, whether they are single, married or co-habiting, with or without\u00a0children.\u00a0They offer guidelines\u00a0for household expenditure and they\u00a0expect debtors\u00a0to\u00a0conform\u00a0to these\u00a0rules of thumb. If a\u00a0consumer has unusual\u00a0or\u00a0extraordinary costs,\u00a0lenders\u00a0expect to see\u00a0compelling explanations\u00a0why such\u00a0expenses\u00a0should be\u00a0allowed\u00a0in an IVA.\u00a0There is no adequate definition\u00a0for what\u00a0lenders\u00a0would\u00a0consider a reasonable\u00a0dividend.\u00a0It really\u00a0does\u00a0rely on\u00a0the\u00a0amount of\u00a0the\u00a0debts\u00a0and the\u00a0level of disposable income\u00a0that the\u00a0debtor\u00a0has.\u00a0Bear in mind\u00a0an IVA\u00a0is generally geared to people with debts more than\u00a0\u00a315,000.\u00a0It could be hard to obtain\u00a0the\u00a0authorisation\u00a0of\u00a0creditors\u00a0for an IVA if the monthly\u00a0excess\u00a0income\u00a0is less than\u00a0\u00a3200, but there are exceptions.<\/p>\n\n\n\n

Whilst\u00a0there’s no minimum dividend\u00a0mandatory\u00a0by law for an IVA to be\u00a0proposed,\u00a0lenders nowadays\u00a0have great difficulty in\u00a0agreeing to\u00a0IVAs where the\u00a0projected\u00a0dividend is lower than 25p in the \u00a3,\u00a0even though\u00a0in exceptional\u00a0cases\u00a0they\u00a0might agree to\u00a0a\u00a0much lower\u00a0dividend than that.\u00a0Some lenders specify\u00a0a minimum acceptable dividend at a much\u00a0higher amount\u00a0than that,\u00a0possibly as much as\u00a040p in the \u00a3.\u00a0A few lenders\u00a0have a policy of rejecting all IVAs with which they are presented out of hand and\u00a0without reason.\u00a0Even though this may seem unjust\u00a0to the insolvent debtor,\u00a0luckily\u00a0such\u00a0creditors\u00a0are in a minority and unless they hold over 25% of the debts, they\u00a0can be\u00a0outvoted by the other\u00a0lenders\u00a0who\u00a0might be pleased to approve\u00a0the IVA\u00a0proposal. Each\u00a0case\u00a0is\u00a0considered\u00a0on its own merits. At least 75% of voting\u00a0creditors\u00a0must\u00a0agree to\u00a0your IVA\u00a0offer\u00a0for it to be\u00a0authorised\u00a0and\u00a0lenders\u00a0take many\u00a0factors into consideration\u00a0in making their\u00a0determination whether or not to accept\u00a0or\u00a0reject\u00a0each IVA proposal.\u00a0If you don’t\u00a0own\u00a0a home,\u00a0it shouldn’t prevent\u00a0you from\u00a0presenting\u00a0an IVA to your\u00a0creditors\u00a0and it\u00a0should not be an obstacle\u00a0to their\u00a0approval\u00a0of your\u00a0Individual Voluntary Arrangement.<\/p>\n","protected":false},"excerpt":{"rendered":"

Even though you possess zero property or assets, it doesn\u2019t preclude you from suggesting an Individual Voluntary Arrangement to your creditors. <\/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-12981","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\/12981","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=12981"}],"version-history":[{"count":3,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/12981\/revisions"}],"predecessor-version":[{"id":12988,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/12981\/revisions\/12988"}],"wp:attachment":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/media?parent=12981"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/categories?post=12981"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/tags?post=12981"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}