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How will becoming unemployed effect our IVA application? |
Submitted on: 12th Apr 2010 by Non-Member | Total Answers: 1
We are currently in the process of applying for an IVA. Our proposal has been prepared and is due to be submitted to the creditors for approval. However, after this week, i will no longer have my job. I am worried how this will effect our application. Do i tell our IP or wait until the application is approved with creditors and then tell them? My partner is self employed and his work is secure. I am currently trying to look for another job.
Re: How will becoming unemployed effect our IVA application?
An IVA proposal is a legally binding contract between yourself and your creditors and you are required to sign the proposal to state that all the information about you in there is true and accurate. This includes your statement of affairs which will state exactly how much you earn and how much you spend. You are supposed to pay into the IVA what is your disposable income and therefore if you are still paying out the same bills how might you afford the IVA repayments without your income? Furthermore if you where to let the IVA proceed without notifying your IP and creditors you would then be guilty of non-disclosure. It is essential that you do notify your IP as soon as possible so that they can then check that an IVA is still the recommended advice and can make sure the proposal is an accurate reflection of your current circumstances.
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This question was answered by Debt Advice Foundation, an independent UK debt advice charity. If you're considering entering into an IVA, Debt Advice Foundation provides a free, confidential helpline and can advise you on whether you qualify. Click here to find out more.
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