IVA vs R3 IVA Terms Flashcards
Protocol: What are the Breaches?
- 3 missed contributions (9 months in total)
- Debts > 25%
- False / Misleading Info
- Non - compliance
- Obtaining credit >£500 (Not utilities or insurance)
- Not reporting income >10% within 14 days of receipt or paying 50% over within 14 days disclosure
Protocol: Extension
Can be extended up to 12 months
Protocol: Redundancy Pay
Over 6 months must be paid to supervisor
Protocol: Breach Remedy Timings
Notice of breach issued giving 1 month
Protocol: Monthly Contributions Allowed Reduction
15% allowed to reduce without variation
Protocol: Retain petition funds?
No
IVA and R3: How many creditors needed to convene a decision procedure (to remove supervisor)?
25%
Protocol: When can claims be admitted?
£2k or less or
not more than 120%
Creditors must submit POD within 2 months and cannot disturb previous dividends
Protocol: What happens with unclaimed dividends?
Paid to creditors after 4 months
Protocol: When is Protocol suitable?
- Regular income (inc. pension)
- Several lines of credit
- Debts >£5k
- No investment properties
- Consumers who do not meet the criteria for DRO
- No lump sum settlements
- No sole traders with trade debts
- Uncomplicated assets
- No disputed debts
Protocol: What must be disclosed to creditors?
- IP involvement
- IVA in last 2 years
- DRO/DMP/BO/BRU/BRO
- Source of Referral and any payments
Protocol: How should income and expenditure be considered?
In line with the Standard Financial Statement and any deviations disclosed
Protocol: Pension contributions allowed
<55 years min. pension allowed
>55 average of previous 6 months.
Max £75 per month
Protocol: Home & IVA length
Home <£5k - 60 months
Home >£5k - 72 months
Home >5k - 60 months plus equity
Protocol: Remortgage Terms
- 85% LTV max
- Cost increase no greater than 50% of monthly contributions
- Cannot go beyond retirement age or existing borrowing
