It is pertinent that you have done your due diligence before going for the IVA option. Taking expert advice from a debt management consultant wouldn’t be remiss either. If you have done so, here’s what you need to do next. These are the crucial steps to prepare for your IVA proposal.
Information You Require
This list is helpful for a number of reasons. Before you talk to your insolvency practitioner, it is useful to gather the information they will need for your proposal. Having this on hand will save time when putting together your proposal.
Typical types of information/paperwork that you might need for your proposal:
- Pay slips or bank statements for the last 3 months. This will verify your income and expenditure.
- Your latest mortgage statement as well as statements for any other secured loans, if applicable.
- All recent creditor correspondence. This is for noting the account numbers, addresses and latest outstanding balances.
- Evidence of rent payment amounts if you’re currently a tenant. Either a copy of your rental/tenancy agreement or your bank statement is required.
- Details of any vehicle finance if applicable. A copy of the relevant HP/finance agreement(s) or the latest statement you’ve received from the lender is needed
- Details of any other financial policies such as life insurance, health insurance and pension contributions. Copies of relevant documentation showing payment amount(s) are necessary.
What You Will Need To Do:
The insolvency practitioner is the qualified professional so they will do most of the work in proposing your IVA. You will need to be honest with your IP however and communicate with them when they need your information. This is of utmost importance. If your IVA is agreed upon, you will no longer have to talk to your unsecured creditors, you will pay the agreed payments to your IP who will then look after your IVA and distribute the funds as appropriate.
The IVA proposal aims to outline your financial situation and suggest how much you can afford to repay on your debts each month. It’s very important that you are completely honest and open at this point, falsifying or exaggerating information could significantly hinder your application and your path to being debt free. Once your IP has all the information he will draw up the proposal and if you agree, submit it to your creditors for their approval.
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