BR COSTS

[markss]

If my iva was rejected on a debt of £80,000 with disposable income of around £200 how much would i have to pay if i went br? no assetts etc at all

[chris.g]

BR fees are £485, on disposable income of £200, £100 IPA approx, of course it depends on Official Receivers decision.

[carlmcmullen]

Chris is correct.

£200 is very low for an £80,000 debt - i estimate about 10p in the £.

Is there a payment change within the IVA or any equity that you are releasing ?

I think it is more of an unwritten rule but the OR would work out your I&E and then take half of your disposable income normally.

[markss]

the iva is at initial stages ie draft stage they will propose £270 to creditors. they seem confident as i have no property etc and br would give creditors even less.

[carlmcmullen]

You are looking at a dividend of inbetween 15 - 18p in £ after costs.

Although this is not a high dividend it does depend on your creditors and your IP would not be proposing the IVA if they did not consider it to have a real prospect of being approved.

Good luck and keep us posted

[emma_t]

Hi markss

You state you have a disposible income of £200 per month and then said in a later post that you are proposing £270 per month in the iva.

Is this affordable for you?
Emma

[markss]

its through DFD they think its best return for creditors but.. NR hold 25% so may be rejected

[markss]

the figure is £270 sorry was just a random amount before for feedback sorry emma

[emma_t]

My advice to anyone seeking an iva is to make sure that the figures are 100% correct and the payments are affordable and not 'inflated' to gain acceptance.

Markss good luck with your proposal and I hope things go well for you
Emmax

[carlmcmullen]

Good advice emma

Last thing you should do is enter an IVA if you do not feel it is right for you.

Good luck

[MelanieGiles]

Northern Rock do not operate a hurdle rate - and if 15-18p in the £ is the best you can offer there should be no reason why your IVA should be rejected - although creditors will weigh up the benefits of receiving such a low return over an extended repayment period against an immediate sale or write off of the debt. A DMP would not really be appropriate for you, given the length of time it would take to repay the debts, so really the choice for your creditors would be 15-18p under the IVA or no return in bankruptcy.