Understanding your annual IVA review
IVA reviews form part of the IVA supervisor's duties and are normally undertaken by the Insolvency Practitioner (IP) on an annual basis.
The purpose of the IVA review is to reassess the affordability of IVA payments and to check that the surrounding circumstances of the case are updated.
What Is The IVA Review
Towards the end of each year of your IVA you will receive notification from your IP that a review is due.
For a typical annual review you'll be required to provide proof of your income over the past 12 months, although your IP might only need to see your last 3 months wage slips.
You'll also be expected to provide copies of your latest 3 months bank statements and a breakdown of your monthly household expenditure.
With this information your IP, or one of their representatives, will be able to assess your IVA payments and establish whether they should be left the same or increased.
Preparing For Your Review
For your very first review, you should locate a copy of your IVA proposal. Inside the proposal is a copy of your original household expenditure, which was prepared for your creditors at the Creditors' Meeting.
These are the levels of expenditure that your creditors have already accepted you need to support yourself and any dependents you may have.
These figures represent your starting point and should be used as a marker for your review. Where there have been increases to your living costs you should update the figures to reflect the new costs.
The IP's objective is to use the review to try and establish if the difference between your income and expenditure has grown, thus giving rise to a potential increase your IVA payments.
Your objective, if possible, is to demonstrate to your IP that the gap has actually remained the same. If you can do that then you'll ensure your IVA payment stays the same.
If the gap between your income and expenditure has closed, then you may be able to convince the IP to reduce your IVA payment, although this is by no means an easy task.
But IVAs are supposed to be based on affordability and, when necessary, the IP has the discretion to lower the payment.
Annual review top tip
You'll find it extremely useful if you keep a copy of the figures you submit each year. Then, each year, you'll be able to reference the household expenditure with ease and keep ahead of the game.