do I have a basis for IVA or DMP

[m.ch]

I HAVE DEBTS OF £40000
£6000 CO-OP CREDIT CARD
£11000 VIGIN CREDIT CARD
£2500 HALIFAX CREDIT CARD
£18000 NORTHERN ROCK UNSECURED LOAN
MONTHLY TAKE HOME PAY £1600 (BASIC)
DO I HAVE A BASIS FOR IVA OR A DMP ?

[MelanieGiles]

Hi mch

It may be possible for you to propose an IVA - but you have a difficult creditor in there as Virgin are owned by MBNA. They do not accept every proposal, so take specific advice from an insolvenc practitioner as this debt is more than 25% of your overall debt. Also Northern Rock have a dividend expectation of 45p in the £ generally, so you would need to be able to pay contributions of around £450 per month. On your take home pay, these look a little high, so maybe a DMP would be better. Work out what disposable income you have, and then post this so we can advise further.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[aguise]

Hi m.ch
Add all your outgoing bills and take them from your income if you have more going out than coming in then you would be insolvent and could consider an iva it also depends on your disposable income you can work this out by adding the same again but not any unsecured credit payments, just your living expenses,utilities ,food,prescriptions etc take this from your income and that is your disposable income, in an iva the payment would be your disposable income that is why when working out your expenditure it is important to include everything. A dmp is just an arrangement to make lower payments, it does not protect you from your creditors and may take years to pay off. Also do you own property if so then some of the equity would be expected to be released usually in the final year. Post the above info on outgoings etc whether you rent or not and someone will be along to advise further.

Ang

[Skippy]

Hi m.ch and welcome to the forum. So that one of the experts can advise you properly please can you provide a list of your outgoings, not including your unsecured lending repayments. This will give you your disposable income which would be available to your creditors in an IVA.

Onwards and upwards!!!

View my blog at http://skippy13.blogs.iva.co.uk/

[Skippy]

Sorry, there were no other replies when I started typing!

Onwards and upwards!!!

View my blog at http://skippy13.blogs.iva.co.uk/

[aguise]

Sorry Melanie
I'm too slow typing,your reply wasnt there when I started.
Ang

[aguise]

Skip
Its always you and me maybe we should go for lessons together on the keyboard [:D]

Ang

[iva experts]

Good Morning All and m.ch welcome to the forum!

Just to restate what was said above, it is very important that when you are working out your disposable income to be realistic with your general living expenses including things like children’s school meal costs or smoking etc.

If you decide that an IVA is the better option to take, remember that it is for 5 years so it’s best to be reasonable when it comes to what you spend.


Hope this information is of use

Regards. IVA Experts

[m.ch]

thank you all for your comments
my take home pay is £1600 basic wage
expenditure as below

mortgage £328.25
car insurance £25.33
home / contents insurance £24.76
pension £55.77
endowment £89.80
petrol £100.00
shopping £200.00
car tax £16.33
living expenses (entertainment) £300.00
union fees £9.95

£1,150.19 excess of £450.00 p/m
all the above are being looked at to try and reduce spending

i have contacted Thomas Charles & Co Ltd and any other comments and advice woud be greatly received

[iva experts]

Hi m.ch,

Just out of interest do you have any equity in your property that you could release towards paying off your debts?

Sometimes equity can be easily forgotten about because we think of income as what you receive each month.

Hope this information is of use

Regards. IVA Experts

[MelanieGiles]

Hi mch

I see that you have not provided anything for clothing, car maintenance, medical expenses, telephone, council tax, water rates, light and heat, but have included an entertainment budget of £300 and a very low housekeeping budget of £200. You will need to do some reanalysis of these figures - I have a form on my website which you may find useful.

Also, you are home owners, what is the value of your property, and the amount of the outstanding mortgage, and what is the current surrender value of your endowment policy?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk