What If My Financial Situation Changes And I Am Unable For...

What if my financial situation changes and I am unable to make the payments? We understand that during your IVA, the income from your business could fluctuate. This in turn could affect your payments into the IVA as they are likely to be dependent on your business cash flow. If you find yourself unable to make your payments at any point during the term of the IVA, it’s really important that you contact us so we can help you. We have years of experience of assisting people in difficult situations and there may be a variety of solutions available in order to help you complete the term of your IVA successfully. If your financial circumstances change – for example due to a downturn in business, depending on the terms of your IVA, you may†¦show more content†¦At Payplan, in excess of 95% of all revised proposals are accepted by the creditors. If payments are not maintained, it is possible that your IVA will fail which means your creditors are free to chase you for their outstanding debts. How are IVA payments calculated? First you need to create a business budget for the next 12 months – we can help you with this. List your monthly takings from your business and then deduct all your business expenditure. Next, deduct the monthly Tax and National Insurance provision you make and the figure you are left with is your monthly income from the business. Next you need to create a personal budget. Write down your monthly business income (which is the final figure on your business budget) and any other income you receive such as benefits. Following this, write down all your personal expenditure. This will include allowances for things like mortgage or rent, Council Tax, Utility Bills, telephone, travel costs, housekeeping, clothes and toiletries. Once you have done this, deduct your expenditure from your income. This will be the amount you can afford to pay your IVA. It is very important that you ensure all your expenditure is listed in your Income and Expenditure, so you can live with your budget, and so your IVA is sustainable. How long will my IVA last? IVAs normally last for five years.