An Individual Voluntary Arrangement, or IVA, requires just a single payment per month for the duration of the term, unless you are in a position to carry out a much less common lump sum IVA. Once your single monthly payment is made to the Insolvency Practitioner, the sum is divided among your creditors appropriately, meaning that you needn’t worry about the calculations and transactions involved.
These payments are crucial and you cannot afford to default them because this can quickly lead to a failed IVA; leaving your creditors to pursue other actions, including legal actions, to recoup their money.
During an IVA payments can increase or decrease in correlation with your income. The majority of individual voluntary arrangements will include a yearly review, and any changes to your circumstances are factored into your calculations and payment schedule. The approval of your creditors would be required for any changes to apply.
If your income decreases to such an extent that you are no longer able to meet your monthly payments your IP should be informed immediately. They may be able to agree lower monthly payments with your creditors though this will increase the period for which you pay the debt. For extreme circumstance, such as loss of employment, it may be possible to suspend payments for a certain amount of months. These payments will, of course, be required at the end of the IVA process.
It can be possible to complete your IVA payments early if you enjoy a windfall of money and are able to pay the remaining debt in full. A lump sum settlement will require approval from your creditors, and in most cases is agreed upon as it simply means receiving their money sooner.