You cannot work out the possibility of proposing an IVA by working out the figure needed to be paid and then trying to find it! You have to start with your current disposable income and then see what options this leaves you with. Entering into an unaffordable IVA is a recipe for disaster.
I would suggest that you speak to a professional such as Melanie who can go over your figures with you.
I imagine that our repayment mortgage was allowed to continue due to our ages and the fact that the mortgage will not have that long to go once the IVA is completed.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Thanks kallis, I wouldn't want to bother Melanie's team just yet with such a low disposable income of £200 which she said isn't IVA viable.
We find it tough paying £200 into a DMP so I'm sure we couldn't pay more at the moment which rules out an IVA as Melanie said.
If we are able to eliminate some temporary costs in the future we may be able to add an extra £150 to the disposable income. We are using the maximum allowable for family of 3 for housekeeping of £414 but feel there's no way we can manage on less although I've heard some do. We also have a pretty hefty energy bill of £250 per month but again don't know how we could manage on any less.
So the option going forward for us seems to be to continue the DMP until a) bankruptcy becomes attractive for whatever reason or b) We have much higher disposable income to put towards an IVA (I have a target figure of £600 for this but as Melanie said there is no set figure).
Looking at this from the creditors point of view, I can't think why they wouldn't prefer a DMP to an IVA regardless of disposable income as they will get the full amount back with the DMP but probably not with the IVA. Is there a law that says they have to accept an IVA under certain circumstances even if a DMP is also feasible and would give them better return in the long run? Speaking solely for non-homeowners here as for homeowners there are other factors involved such as remortgaging which seem to make IVA better for both sides.
Dmp-er is it possible to rent somewhere cheaper,to increase disposable income?
Its not hard to feed a family of 3 on £75 a week which is what we have been doing for almost a year now,and I can safely say I havent lost an ounce of weight(worse luck!!)
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
Hi dmp-er, sorry to hear of your situation, a 50 year DMP is crazy and I would look to find an alternative. My debt was attributed to gambling and this did not prevent my IVA being accepted.
I also looked at bankrupcy as an option. You would likely ge a BRU (for about 3-5 years) but does this matter? The restrictions of the BRU are not really relevent to most people. However long the BRU you would only be expected to pay money back for a maximum of 3 years under an IPA and based on your low DI these may even be waived.
So irrespective of the BRU you will be debt free in a maximum of 3 years.
Godd luck and hope this gets worked out for you.
That is a hefty energy bill! We have a four bed detached house and our gas and electric are £170 a month.
Is there not some way of you finding a cheaper energy company which might save you some money.
As to the £200 per month, you could try giving Cleardebt a ring, as they do accept lower payments for IVA's than a lot of companies. It can't hurt.
Again, I would certainly look at BR - it would remove your stress and you wouldn't have a DMP hanging over your head forever like the Sword of Damocles
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Jan - it wasn't the £200 which put me off, it was the fact that the debts are £120,000. I don't think that even David Mond would take on a case with that low a dividend!
how can you run up debts of that proportion with only £200 to service them. Has there been a huge change in circumstances or is my maths head playing up.
IVA.co.uk The best place for debt advice. Thanks to Melanie Giles, David Mond, David and J (Elv5) Kallis, Dand, Skippy, Andy Davie
Sorry Mel, I hadn't realised they were that much. You are right - I don't think even David would take that one!
Note to self - must learn to read threads properly!
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
