Introduction
Are you currently navigating an Individual Voluntary Arrangement (IVA) and facing changes in your financial situation? This guide will help you understand the importance of keeping your insolvency practitioner informed about any changes, from income fluctuations to new debts. Staying updated can protect your IVA agreement and ensure you manage your finances effectively. If you need assistance, Contend’s highly trained AI legal experts are here to guide you through your legal challenges. With Contend, you can access the easiest legal help in the UK.
If you’re in an Individual Voluntary Arrangement (IVA), it’s important to keep your insolvency practitioner updated about any changes in your personal circumstances. Not doing so could put your IVA agreement at risk. Here’s a simple guide on what to report and how to handle changes in your financial situation.
When to Inform Your Insolvency Practitioner
You should notify your insolvency practitioner if any of the following happens:
- Changes in Income: If your income increases or decreases, it’s crucial to let them know. This includes starting a new job or receiving a bonus.
- Job Changes: If you switch jobs or lose your job, inform your practitioner right away.
- New Debts: If you discover additional debts that weren’t included in your IVA, you need to tell them immediately.
- Moving: If you change your residence, it’s also necessary to report this.
If you’re uncertain whether to report a change, it’s always better to reach out to your insolvency practitioner for guidance.
Struggling to Make Payments?
If you find yourself unable to make your IVA payments, don’t hesitate to contact your insolvency practitioner. They can help you explore options to adjust your IVA based on your new financial situation.
What to Do If You Get Made Redundant
If you lose your job due to redundancy, you must inform your insolvency practitioner within two weeks of your redundancy being confirmed. You’re allowed to keep six months’ worth of your take-home pay from your redundancy payment, but any remaining funds typically need to go toward your IVA.
Failing to notify your practitioner about your redundancy could be seen as breaking your IVA agreement.
Income Increases and Bonuses
If your income increases, such as receiving an inheritance or starting a new job, you need to inform your insolvency practitioner right away. Not doing so could lead to complications with your IVA.
If your IVA includes a windfall clause, any unexpected money you receive—like lottery winnings or a substantial bonus—might also need to be paid into your IVA.
If you receive a bonus or commission that exceeds 10% of your regular take-home pay, you must report it within 14 days.
Taking Money from Your Pension
If you decide to withdraw money from your pension, this counts as income, and you should notify your insolvency practitioner. Depending on your IVA terms, you may need to contribute some of that money toward your IVA. If you have a defined contribution pension and turn 55 during your IVA, you might be eligible to cash in some of your pension savings. Always seek advice from a financial adviser before making decisions about your pension.
Forgotten Debts
If you realize you forgot to include a debt in your IVA, inform your insolvency practitioner as soon as possible. These are known as ‘unknown creditors.’ Your IVA is legally binding, which means that any unknown creditors discovered later must adhere to it, and they may receive a portion of your monthly payments.
If an unknown creditor is unhappy with how they are being treated under your IVA, they can challenge it in court within 28 days of learning about your IVA.
Conclusion
Staying in touch with your insolvency practitioner is crucial for the success of your IVA. Whether your situation improves or worsens, keeping them informed will help you navigate your financial challenges more effectively. If you’re unsure about any aspect of your IVA, don’t hesitate to reach out for help.
For personalized assistance, consider trying Contend’s legal expert chat. Contend’s highly trained AI legal experts will work with you to provide guidance and help you understand and resolve your legal problems. Contend is the Easiest Legal Help in the UK.
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