What assets might an IVA affect?

You are able to keep your house and car with an IVA

We receive a lot of calls and emails from the public asking; "What assets might an IVA affect?".

Please note unlike bankruptcy in the UK, you are able to keep your house and car with an IVA. Once a bankruptcy order is approved in court you lose control of you assets. Your assets may be used to pay off your debts. In addition any assets you might gain during your bankruptcy period can also be taken from you.

Under an IVA if you own your home it may be necessary to contribute or offer ‘equity’ held in the home to the IVA. In practice this generally means a remortgage to release the equity. This might be at the start, during, or at the end of an IVA. Where a significant equity contribution is made to the IVA it is possible that the arrangement might last only 12 months rather than 60 months.

Any other assets you hold may be discussed with the Insolvency Practitioner such as:

Life assurance policies and Pension option where lump sum can be received.

If you have reached a certain age and this is possible to get your hands on the pension money, there is no problem the IVA supervisor requesting funds are offered these to creditors. Please note but you can usually only do this if you are 50 or older, and your own scheme may have its own rules.

Please note that under an IVA your state pension is definitely not affected. However the creditors usually ask you to stop making payments into a personal pension plan whilst the IVA is running. The creditors see the pension payment as a type of “savings account” and ask the extra money to be paid into the IVA.

Please do not be tempted to make excessive contributes into a personal pension plan, just before applying for an IVA. This is illegal and can be considered to be an attempt to hide money from your creditors.

Share options schemes

Share option schemes are incentives such as performance-related bonuses and are used to encourage higher levels of staff performance. The rewards usually relate to the achievement of certain goals, either personal, team or organisational, or a combination of all.

Some IVA proposals have 50% overtime/bonuses clause which are created so the creditors can benefit and that also you also benefit. If they made it 100% there would be no incentive to work overtime at all.

If you would like to know what assets might an IVA affect complete the following form or telephone freephone 0800 074 6918.

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IVA's

The IVA Guide
Money Advice Direct has put together an IVA Guide based on the enquiries and questions that we receive at our helpline offices.

In the guide we cover such subjects as IVA Approval, early settlment of your IVA, missed IVA payments, IVA failure, additional debt claims and much more.
[click here for IVA Guide]

What is an IVA?
The IVA is an extremely powerful tool enabling you to clear your debt and return to a clean financial bill of health. Visit Money Advice Direct's Guide to Individual Voluntary Arrangements (IVAs).
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What assets might an IVA affect?

You are able to keep your house and car with an IVA

Any other assets you hold may be discussed with the Insolvency Practitioner such as:

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