The IVA Forum is here
to answer all your IVA questions

A. On rare occasions a former supervisor will have no interest in the refund and allow you to keep it. But, more usually, they will want it paid to the IP for distribution to your former creditors. Until last year (2021) IVA arrangements formed a ‘trust’ which, unless specifically quashed, existed even after the IVA was formally completed and it is under that trust that PPI refunds are dealt with. They are due to the IVA because they existed during the IVA, even if not known about. In 2021 a new ‘IVA Protocol’ was published which, as we understand it, automatically severs this ‘trust’ on completion of the arrangement, but, no doubt, IPs will take other steps to ensure PPI and the like get captured … time will tell.

A. Not usually! When you are made redundant you are allowed to keep the equivalent of 6 months’ pay (at currently agreed rates) with which to live and continue paying the IVA. Any compensation over this amount has to be paid into the IVA. If you get new employment before the 6 months is up any ‘unused’ salary you were allowed to keep has to go back to the IVA.

A. Assuming you have the usual clauses you are allowed credit up to £500 without permission from your IP (although we feel it is always better to run it by them anyway). That is in total, not per loan, and many of us eat into it with monthly paid car insurance alone! Remember though, you would fail a credit check anyway. It is possible your IP would agree a payment break for a month or two so you could pay cash for a replacement. Any missed months would be added back on at the end of the IVA. Do not be tempted to miss payments without clearing it with your IP first, though, as it could lead to the IVA being failed, putting you back to square one with creditors.

A. If your income has increased, your IVA payment will be increased by 50% of the net pay rise. However, if you would prefer to deal with your debt by way of a DMP now, you will need to ask your IP to fail the arrangement. This would then allow creditors to add back lost interest, so your debt could increase somewhat, and pursue you for collection. There is no guarantee they will co-operate with a DMP.

A. No. The new owners of the loan are bound by the IVA exactly the same way as the previous owners. Some might ask you for payment, not realising the loan is protected in an IVA. They usually back down when informed of the situation.