IVA annual review - Information on How to prepare it

The annual review of the debtor is undertaken by the supervisor at the end of each year of the IVA agreement. This is done to ensure that the monthly payments that are made to the creditors are fair and the changes in the financial status of the debtor are reflected in the IVA.

A blank budget sheet is sent to the debtor two months before the anniversary of the IVA. The document consists of two columns where the debtor has to fill in the accurate figures of his last monthly expense budget as well as his current income and expenditure.

The information filled in the sheet should be backed by adequate proof. The debtor also needs to attach the bank statements and other necessary evidence to support the information.

For example if the debtor’s expenditure has increased due to a rise in the utility costs then he needs to attach the related proof along with the sheet. For this purpose it is necessary that he keeps securely all the related slips received throughout the year. After filling in the sheet, this new budget has to be sent to the supervisor.

Based on the new budget, the supervisor will then make calculations for the new IVA monthly payments and post the new details to the debtor. The new IVA payments can rise, fall or remain constant.

The stepped payments, if present in the IVA, are also taken into account for the annual review.

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