Well, have you heard about whats an iva Individual Voluntary Arrangement? This is one of the best debt-solution that one can think of. It’s basically a legal agreement between the debt-payers and the creditors, and an experienced Insolvency Practitioner will critically handle the entire process.
Thus, you can get the opportunity to make monthly repayments within five-six years, after agreeing with this debt management plan. Once you will complete paying the entire debt amount, the creditor will automatically write off the debt. But, hiding money from IVA and saving it for future purposes is considered to be illicit.
So, if you have already issued an IVA form and are thinking of hiding your possessions from a high-qualified practitioner, it won’t be that easy. However, if unexpectedly your financial situation improves whilst on IVA, eventually you will be able to include an additional amount of money in the monthly repayment.
But, don’t hide the additional income from your creditors or the practitioner, it’s not ethical. Instead, show them the evidence such as bank statements or payslips, and keep them aware of the financial change, it will help you in the coming days.
Is There Any Way to Hide Money from the IVA?
Thinking of hiding money from IVA? To be honest, that’s not a good idea. And, if you are thinking “Why”, then it’s important to clear out a few things in the first place. Once you signed up for an Individual Voluntary Agreement, this simply implies that you have to pay the previously determined monthly payment at the end of the month. And, for that, you have to spend a minimal amount of money on your daily expenses.
Up to five years or more than that, you have to put a hold on investment, for repaying the debt. However, you can request to extend the repayment duration, as you are unable to provide the money within the given time.
But, why do you want additional time? Is it because right now you don’t have a sufficient amount of money in hand? Well, that’s quite natural when you have a low monthly income. But, if you are hiding it and spending on unwanted expenses, this is where the problem might begin.
Because, during this IVA period, a licensed Insolvency Practitioner will thoroughly analyse the financial details to keep a record of your overall expenditures. Additionally, they will aid in providing you with effective debt advice and plans, which will be beneficial to you.
Once the Insolvency Practitioner gets proof that you were hiding money throughout the IVA duration, he might take further legal actions. Ultimately, you have to end up facing bankruptcy-related instances. Not only this, you are going to lose the total amount of money you have saved or hid from the practitioner. Now, it’s all up to you, think critically before you make any major mistake.
Why One Should Never Hide Money from IVA?
Well, if you are already on an Stepchange IVA agreement, then you must know that the practitioner critically checks the on-going money transactions, at the end of the month. Moreover, by constantly checking the financial situation of the debtor, they make sure he is maintaining all the rules and regulations that need to be followed in the IVA period. And, for going against the IVA policies, he might have to face negative consequences in the coming days.
How Hiding Money from IVA can Impact on Your Living?
You might have unknowingly hidden a few amounts of money from IVA, but do you know what happens next? Probably, you don’t! But, you should know that Government authorities regulate the IVA agreement. If any income changes take place, you have to immediately state that to the practitioner.
And, the practitioners who are dealing with the IVA have to notify the Governing bodies about your financial statement. However, if you fail to do so, you might even end up going to jail. Further, you will lose access to your belongings for such an illegitimate action. Simply, avoid bankruptcy-related scenarios by not hiding money from IVA.
Avoid Going to Court, Stop Hiding Money from IVA
Yes! You might even be taken to court for hiding a bulk amount of money transaction from IVA. As this agreement is directly handled by the veteran court authorities, such an unwanted action won’t be appreciated. You might even have to end up spending more money to get out of this situation. Simply, avoid these sorts of circumstances, and lead a stress-free life by not hiding money from IVA.
How Does an Individual Voluntary Arrangement Fail?
At times, the creditors might take further action and opt for a cancellation of the IVA, this usually happens, when you won’t be able to make further payments. So, if you are getting difficulty in paying the debts, even after getting an IVA, inform the practitioner about this.
They might help you to get out from certain crises, by reducing the payment amount. But, if the creditor won’t accept this cost reduction, he might even take legal action against you for not paying the debt.
Additionally, you also have to keep paying the fees of the practitioner, whom you have hired for IVA. When the agreement fails, even the practitioner might request the court to declare you bankrupt. And, if you earn less money and don’t own a home, this will be even more difficult for you to sustain. So, simply avoid the chances of failure of an IVA, by paying the debt within time, that will be enough.
Is there any Windfall Clause in IVA?
Technically, the Windfall is considered to be an unexpected money gain which either you can get through winning a lottery. Even, this might take place for inheriting a large amount of money from your workplace, during the agreement period.
In certain instances, the first thing that you should opt for is to get in touch with your practitioner and let them know about the Windfall cash. Based on that, he/she will settle an amount of repayment for your convenience.
The practitioner will further let you know about the Windfall Clause associated with the IVA. Practically, when it comes to the inflow of additional money, all of these have to be spent for IVA. It will be firmly handed over to the practitioner; so don’t even think of hiding money from them.
What Needs to be Done when the Amount of the Received Money is More than the Remaining Debt?
Did you just get an appraisal at your workplace? Is the amount larger than the debt that you still need to repay? Then, simply think about how that amount can be managed in paying the debt instead of hiding it from the authorities.
Apart from that, you’ll be able to cover the practitioner fees and also the statutory interest with that newly received amount of money. So, an unexpected inheritance of money is obviously helpful in putting an end to the IVA way before the designated time.
Popular Post: History of Step Change Debt Charity
What Needs to be Done when the Amount of the Received Money is Less than the Remaining Debt?
Did you get a Windfall under £500 or less than that? Then, there is no probability of including that in IVA. But, that doesn’t necessarily mean, you will end up hiding the money from the practitioner or creditor. Simply, inform them about the Windfall to avoid further inconvenience in paying the remaining debt.
What to Do, if Pension Starts during the IVA Period?
Well, your financial condition might become stable when the pension will start. In certain cases, you have to inform that as well. Because some of it’s amount might get included under IVA. So, first acknowledge, then learn and write off the debt without any hurdle.