Your IVA proposal has to include detailed facts about your financial circumstances. You will be required to provide paperwork to validate these.
Included in this article:
- The main Paperwork required to start an IVA
- Will you need a written Home Valuation?
- Does your Partner need to provide any paperwork?
- What is required for an annual IVA Review?
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The main Paperwork required to start an IVA
As a guide your IVA company and Insolvency Practitioner (IP) will need to the following documents from you before they can make an agreement with your creditors:
– Proof of your identity (copy of your passport or photo driving license)
– Written balance for each of your creditors
– Last 3 months wages slips and/or benefits statements
– Last 3 months bank statements
– Copy of your rent agreement or latest mortgage statement
– Copy of your car finance agreement if you have one
Depending on the IVA company you use you will normally be able to e-mail electronic or scanned copies of your documentation to them. This will speed up the time it takes to get your Arrangement in place.
If you are self employed you are unlikely to have wage slips. Instead you will need to provide your last tax return and a trading projection for the next 12 months.
Do you need a written Home Valuation?
If you are a home owner you will need to provide information about the equity in your property. This is calculated by taking the value of your home and deducting the outstanding mortgage and any other debts secured on it.
Nowadays most IVA companies will be happy to use an estimate of the value. As such you or they should be able to get this online from an internet property company such as Rightmove or Zoopla.
If you have a large tax debt HMRC will require a formal valuation of your property. You should be able to get this from a local estate agent for free if you ask in the right way.
If you need to get an estate agent valuation make sure you inform them that you want a quick sale. For IVA purposes you need the lowest possible valuation.
Does your Partner need to provide any Paperwork?
If you are living with a partner or spouse you will normally have to declare their income in your IVA proposal. This will also have to be verified with copies of their wage slips or benefits statements.
Legally speaking your partner is not liable to pay your debts. However if you want your creditors to agree the Arrangement they will normally require the total household income to be used when calculating what you can pay.
Creditors generally take the view that although the debts are in your name your partner will also have benefited from the expenditure. As such they want you both to contribute to the IVA payments.
You could resist a request to provide your partner’s income information. However this will probably result in you being unable to propose an IVA.
What Paperwork is required for an Annual IVA Review
A monthly payment IVA normally lasts for 5-6 years. At the end of each year your IVA Company will undertake a review of your circumstances. This is a check if you can afford to pay more into the Arrangement.
You will have to re-submit your income and expenditure budget. To confirm these figures you will also have to provide your last 3 months wage slips and bank statements.
It is unusual to be asked for any other documents at an Annual Review. However the Insolvency Practitioner has the right to ask you for any paperwork they feel is relevant in assessing your ongoing circumstances.
Some IVA Companies will require access to your last 12 months bank statements and wages slips when they carry out your annual review.
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