Insolvency Practitioner Information
Reduce your IVA failures and income loss
Our mission with Protect IVA is to reduce IVA failure, - AT NO COST TO YOU OR YOUR CLIENT !
By applying as little as 3.5% of the Dividend target to Payment Protection Insurance (PPI), specifically designed for IVA Payment Protection if your Client is Self Employed or a Controlling Director, or 4.5% if they are Employed, the IVA failure rate is reduced as your Client is protected against any loss of future income through Accident, Sickness or Redundancy.
The facts speak for themselves - within a TIX Compliant IVA, the National IVA failure rate of 30% reduces your income, and the earlier the failure the higher the percentage loss to you on that case increases.
IVA fails at end of IPs Income Loss
Month 12 54%
Month 24 41%
Month 36 27%
Month 48 14%
Protect IVA is the only independent IVA Payment Protection Plan on the market that GUARANTEES cover and premium levels for the entire duration oF the IVA, paying Accident and Sickness benefits right through to the end of the IVA. Yes, a claim in the first month could result in Protect IVA making ALL 60 IVA PAYMENTS.
Because Protect IVA is independent, cover can be taken out regardless of who the creditor or IP might be. Not only that, your Clients can insure up to 125% of their IVA, providing up to 15 months of payments in the event of Redundancy, whilst ensuring that there is no limit on the number of claims they can make.
In support of the Financial Services Authority initiative ‘Treating Customers Fairly’.
When submitting an IVA Proposal to a lender, we recommend inclusion of this valuable PPI to guard against IVA failure, making it much easier to reach an agreement with the added reassurance that the IVA will be fulfilled.
If Creditors ask to have this PPI removed, a suggestion of a 64 month IVA would mean that they would not be picking up the cost of this. However it is worth bearing in mind that if a Creditor is aiming for a dividend of 49%, and the present national IVA failure rate continues at 30%, on average they will be receiving a dividend of only 34%. Compared to this 15% loss in dividend the premium for Protect IVA pales into insignificance. If the Creditors still refuse to allow the inclusion of this premium, and your Client is unable to pay this outside of their IVA, please record your negotiations.
If the IVA later fails because your Client becomes unemployed under circumstances that would have validated a claim payment under Protect IVA, there is a very good chance that a complaint to the Financial Ombudsman under the Banking Code would be successful, and of course such a COMPLAINT CAN BE MADE ENTIRELY FREE OF CHARGE TO YOUR CLIENT.
