You will have to provide various paperwork when you apply for an IVA. This is required to confirm your financial situation.
Included in this article:
- The paperwork needed for an IVA application
- Are any documents needed from your Partner?
- What if you are a Home Owner?
- Paperwork required for the Annual Review
The paperwork needed for an IVA application
Before your IVA can be submitted to your creditors, you will need to provide proof of your financial circumstances. Ideally you need a recent statement or letter for each of your creditors confirming the balance owed.
You will need to prove your income with your last three months wage slips and if you get Tax Credits your latest statements.
If you are self employed, you will normally need to provide a copy of your last 2 years tax returns. If you have not yet submitted your last years return, this will have to be completed before you can proceed with your application.
You will also be asked for your last three months bank statements and a copy of your rent agreement or latest mortgage statement if you are a home owner.
If you are unsure who you owe money to a good way to find out is to get a copy of your Credit File. This will list the debts you have had in the last 6 years and the amount outstanding.
Struggling to get your head round all of this? We can help you implement an IVA. Call us (0800 011 4712) or complete the form at the bottom of this page. The advice is free and confidential.
Are any documents needed from your partner?
Unless you start a Joint IVA your partner will not be involved. They are not required to sign anything and if you own a property in joint names their share of any equity is not at risk.
However if they are working or receive any other form of income you will have to declare this. You will also have to provide copies of their wages slips or benefits statements to prove what they have coming in.
Your creditors need assurance that your living expenses budget represents your fair share of the household bills. If your partner has income they will be expected to contribute to these. You cannot argue that you have to pay everything and thus artificially reduce your disposable income.
If you have built up the majority of your debts while you have been living with your partner your creditors will expect the total household disposable income to be paid into the Arrangement.
What paperwork is required if you are a home owner?
If you own a property you will need to prove the equity in it. To do this the latest statement for your mortgage and any other secured loans will be required. These show the amount owed against the property.
In addition you will normally need a recent valuation (taken in the last 3 months). Very often one provided by an on-line company will be fine. However if you owe money to HMRC a written estate agent’s valuation will be required.
You can get a local estate agent to give you a valuation in writing for free. Tell them you want to put your property on the market. Once they have valued it you can tell them your circumstances have changed.
Paperwork required for an IVA annual review
If you are paying your IVA on a monthly basis it is likely to last 5-6 years. Once a year on the anniversary of the start date a review of your circumstances will be undertaken by your IVA company.
You will be asked to complete a new income and expenses budget as part of the review. You will also have to provide copies of your wages slips and bank statements. Most IVA companies will ask for a full 12 months worth of these documents.
The reason for annual reviews is to establish whether your circumstances have improved. If so you may be asked to increase your monthly payment.
Want to start an IVA? Call us (0800 011 4712) or complete the form at the bottom of this page. The advice is free and confidential.