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FREQUENTLY ASKED QUESTIONS - INDIVIDUAL VOLUNTARY ARRANGEMENT

1. Will I lose my home?
Usually in an Individual Voluntary Arrangement the debtor is allowed to keep his house and continue to pay the mortgage. In some instances the creditors may require you to sell or re-mortgage the property and contribute all or some of the funds into the Individual Voluntary arrangement.

2. Will the Individual Voluntary Arrangement be advertised?
No. Although a bankruptcy order must be advertised, this is not required in an Individual Voluntary Arrangement.

3. Will my employer be informed?
No. The supervisors of your Voluntary Arrangement will not contact your employer unless required to do so under the terms of the arrangement. If your employers are amongst your creditors, they will of course be notified.

4. What will happen to my pension?
It depends on the type of pension that you have. Usually, where you are an employee contributing to your employer's pension scheme, the creditors will allow you to continue to make contributions to the scheme. If you have a personal pension, then the creditors may insist that all further contributions are frozen for the duration Voluntary Arrangement.

5. Where will the creditors meeting take place?
This is held at a place convenient for the creditors. If Lines Henry are acting we usually hold creditors meeting at our offices in Altrincham, which is central and convenient for those involved. We have found that over the last few years it is extremely rare (in cases of consumer rather than trade credit) for any creditors to attend these meetings.

6. How long does it take for a proposal to be prepared?
We expect to have a proposal prepared and returned to you within ten working days of receiving complete answers to the questionnaire we will send you and information we have requested, i.e. bank statements. Delays can occur if the information requested is not forwarded to us, or is not complete.

7. I would rather certain creditors were not informed of the proposal and kept out of the arrangement.
The nominee must send a copy of the proposal to all known creditors. You cannot pick and choose who you pay. If a creditor is to be excluded details must be given in the proposal and the creditor must agree.

8. When will the meeting of creditors take place?
The meeting will be called for a date approximately six weeks from when you return the duly signed proposal and sworn affidavit to us. This allows for us to forward the paperwork to court, who then return it to us. We are then required to give creditors not less fourteen days notice of the meeting.

9. How are the Nominee's and Supervisors fees paid?
The nominee's and the supervisors fees are paid out of contributions you make Into the Individual Voluntary Arrangement. Generally you do not have to pay any of these fees in advance. We will ask you to provide, once you have sworn the affidavit and signed the proposal, a cheque for court fees of £120. The cheque should be made payable to HMPG (the court).

10. Do I have to pay any additional fees/expenses?
No. Once you have sworn the Affidavit and provided the cheque or remittance for the court issue fee, all of the other costs come out of the contributions you make into the Individual Voluntary Arrangement.

11. What happens if my monthly bills increase, or there is a change in my financial circumstances?
The supervisors will monitor the level of your income and expenditure throughout the duration of the Voluntary Arrangement. Such reviews are usually made every six or twelve months.

12. What if I lose my job or there is a dramatic change in my circumstances?
There is a provision in the Voluntary Arrangement to call a further meeting of creditors if this proves necessary. In previous cases, where somebody has been made redundant or has become seriously ill, we have managed to persuade creditors to either extend the period of the Voluntary Arrangement or, in exceptional circumstances, consider the Voluntary arrangement complete. The important think is that you tell us as soon as possible when there is a change of circumstances in order that we can do something about it quickly.

13. Will creditors allow pet insurance/vet bills as part of my regular monthly expenditure?
Yes. Creditors generally accept this as part of your normal household expenditure.

14. Can creditors pursue me for the balance of the debts after the Individual Voluntary Arrangement has finished?
No. The purpose of the Individual Voluntary Arrangement is to ensure all known creditors are bound by a full and final settlement.

15. Will I be able to keep subscribing to Sky TV?
Yes. Creditors generally accept this as part of your normal expenditure.

16. I have a car on finance. What will happen to it? Will the finance company repossess it?
In most cases, your creditors will allow you to keep a car where it is essential, for example, to get you to and from your place of work. We will include in the proposal a provision that you will continue to pay the finance company their normal monthly instalments. In most cases the finance company will not re-possess the car and will continue to collect the outstanding monthly payments.

17. Will my credit rating be affected?
Yes. All the major credit agencies get a monthly update of all IVA's. They keep a record of the IVA for at least six years from when it commenced.

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