One Off IVA's
Another way to do IVA?s is called a one off IVA. This type of IVA is suitable for you if you are going to be receiving a lump sum in the near future.
This can be for a number of reasons either from a sale of a property, inheritance, a windfall, shares being paid out etc. It is more usual to do this type of IVA when you are waiting for a property to sell.
Instead of you paying into an IVA for 5 years, the proposal would show a lump sum amount being paid upon the sale of your property and no monthly contributions.
The reason some individuals will want to do a one off IVA rather than waiting for their property to sell, is to get some breathing space from the creditors. A one off IVA still has the same benefits as monthly contributions IVA in that, all the interest and charges are stopped and the creditors can no longer hound you.
Once you have sold your property and the lump sum has been paid to the creditors the IVA is complete and any remaining debt is written off and cleared.
Creditor
Someone you owe money to.
Unsecured lending
Total loan & credit card debts excluding your mortgage and any hire purchase.
Country
The country you currently live in.
Insolvency Practitioners
Also known as an IP, a person who specialises in formal insolvency cases.
Valuations
The process of determing the current value of an asset.
Equity
The difference between the market value of a property and the claims held against it.
Lender
Someone you owe money to.
Eviction Order
A court order by which a person may be evicted.
Arrears
An unpaid and overdue debt.
Disposable Income
The amount of income left to an individual after taxes have been paid, available for spending and saving.
Statement of Affairs
A financial report showing assets and liabilities at expected liquidation values and shareholders' equity.
Insolvent
Unable to meet debt obligations.
Secured Loan
Money borrowed using goods or property as a guarantee.