general rundown and questions

[poodle]

Okay my partner has begun enquiries into an IVA both myself and her based on our total owed unsecured debts of around 43k but i have a couple of questions and things to check to make sure im clea on

I will be paying the IP company a fee for being my IP of approx £7500 (varies depending on company i presume) during the 5 year course of the IVA should it be accepted?

It will not affect my mortgage directly but i could be made to use available moneys from my morgage to pay towards debts at the end of the IVA?

Would getting a new mortgage on a larger property be affected?

Would overtime from my company be affected as i have lots of overtime avilable at any time and how would this affect my monthly payments?

Considering going to work for myself as a sole trader working at first on the side above and beyond work in my free time to get my business growing with a look to replacing my full time employment with my sole trader business work, how would this affect my iva both now, during the period when im both working full time and self employed and then again when im actually only self employed?

Whats the average time from initial consultation to an agreed IVA.?

During the initial IVA period will i get unexpected numbers of calls from creditors hassling me about my credit and repayments?

is there anything else i should be aware of that ive not found in the usual Info and FAQ's?

many thanks

[MelanieGiles]

Hi poodle and welcome to the forum

Taking your questions in turn

1

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[poodle]

just to throw another thing i have thought about at you. My other half works in the police force and is stationed a considerable drive away from home therefore currently burns through about £300 a month in fuel alone if she was to get a transfer to a more local station how also would this affect the IVA?

[MelanieGiles]

Will try that again!

1 Yes fees will be charged by the IP - but these are paid out of the monies you pay over on a monthly basis, and so are effectively funded by the creditors.

2 The rights of secured creditors are not affected within IVA proceedings, but you may be required to raise equity in your property towards the end of the IVA, and this could be done by way of a remortgage.

3 Your IP will need to agree this, and the payments on the larger property must be no larger than those on your original mortgage.

4 Creditors will generally require you to pay over 50% of your overtime monies, which is usually calculated on a quarterly basis. Some of my clients have stopped working overtime, as they do not feel it is worth doing if they are going to lose half of it.

5 Any income you earn from your self-employed business will need to be included within your calculation of disposable income.

6 Usually 4 to 6 weeks depending upon the quality of the information provided by you to your IP.

7 Probably. This is unavoidable, but you should bear in mind that you are working towards something positive, and that the nasty people on the end of the phone will go away if you are polite to them (usually").

Don't hesitate to bombard us with questions. That is what this forum was set up to do, and other people will gain from the interaction. Think very carefully before you enter into an IVA - it is a serious five year commitments, and you must be sure that you can afford the repayments.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[poodle]

all of my parteners debt and a lot of mine fall on those nasty credit cards so an IVA would be a way of reducing these to a fixed term repayment so that we know exactly how much we are paying and when its all going to be blue skies again, unfortnatly with a credit card you dont really as a consumer know how long its going to take to repay the outstanding debt ive no doubt its probably in the region of 20 years plus especially when the montly interest is not much less than the min repayment

about 25% of the outstanding monies is a unsecured personal loan taken at the same time as my mortgage and as such is on the same 25 year term as my mortgage of which only one year has passed attaching this to a possible iva has the same advantages of shorter fixed term

im not diving into it as you can tell, its my partner who was looking into it through a contact at work but i have not spoken to the IP directly nor do i even know the company name but felt i had many questions that i needed to know about it first.

looking at your replies it may be more benfitial to me to forget about having my own business for now and not bother working overtime but to go ahead with the iva and sit to the side for 5 years. Thats something for me to think about i guess its balancing up solving my debt problems again changing my life in the manner that self employment might.

[freelili]

Hello Poodle

Its quite a commitment as you already seem to know, I just wanted to add that be sure to contact three companies before you commit and make sure that you are happy with them, there are good companies such as ~Thomas Charles and bad ones, unfortunatly some people have had bad experiences. You should not pay months and months of upfront fees. Make sure that you allow a budget which is no frills but realistic for a 5 year stint. I am not an expert just another person in debt. I wish you the best of luck. This site will offer you lots of good advice and there is lots of support around too.

All the very best

LILY

[poodle]

i think ill have to gathere together my information and phone a few companies this evening to try and get a general feel for things and have a discussion with my other half its not just the now but the next 5 years of my life i have to look at and if earning overtime and working for myself which are the two things i do just to keep afloat at the moment are suddendly going to become a hinderance some serious thinking will have to be done about where i want my life to go.

[poodle]

overtime and self employed earnings are of course a variable factor so how are these accounted for in an iva, would i be expect to pay more the following month for example based on extra earnings for the current month? then if i were to earn no extra the following month would the iva revert to the original payment?

[poodle]

as another question how would my child maintainance be affected, i pay a direct sum of money to the mother of my childs bank account weekly how is this taken into consideration?

[Oliver]

Hello Poodle

You will usually have to allocate 50% of any Overtime / Bonus / Commision to your IVA payments.

If you pay Child Maintenance you will be allowed to continue this and a monthly budget for this will be provided in your IVA.



Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp