Hi All
Just a quick update, I have had advice for another company who said that they could do an IVA at £207 per month. I called to cancel the first company who told me that apparently they will start me off on that rate, but when I have had my IP? meeting and the IVA is propsed the payments would go up to £250 or more. Is this correct? I would appreciate any advice.
Many thanks
Payments could be adjusted at the creditors meeting, but that's not a given conclusion. They can also increase as your disposable income increases over the term.
A decent IP ( and there are many that post on here) will set a sensible level to ensure you can afford the payments.
Frankly your initial IP's comments are a bit low to definitely say they WOULD go up --- he hasn't a clue -- indeed, if one of your creditors are in the habit of trying to increase payments then that would also have happened when this IP put the proposal forward too !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
They told me that an IVA would not be accepted unless I paid at least £250 a month. I am finidng it all very confusing and I am wondering if I am doing the right thing.
hiya
as evryone has said, please contact the different companies on iva.com! you wont be sorry and this forum gives really good help, support and advice!
I know you can only pay what you can afford but does there seem to be a certain % that is a minimum. Aware that it is unrealistic to offer more than you can afford to, but I don't want us to raise our hopes. I also appreciate that the experts are precisely that, & I will leave them to do what they do best. Just wondering & worrying. Thanks.
I think that you need to go to a firm who will correctly analyse your income and expenditure to arrive at a figure that you feel would be affordable. Most IP firms will have a benchmark figure beyond which it is not commercial for them to present cases. In my firm this is £180, but if I had a client who had less money than that and really wanted to present an IVA, I would refer them to another firm who did accept cases at lower contributions - ClearDebt being one of the those who do.
You also have to bear in mind that creditors do work to expenditure guidelines, so it is possible that the first IP is advising you that creditors are unlikely to accept some areas of your expenditure and therefore they feel you can be expected to pay around £250, however it is still your choice whether to accept or reject those terms.
What figure do you, yourself, feel that you could afford to pay each month with ease?
I have been in an IVA for nearly a year. I have £19000 debts and pay £150 per month. I also opened a NatWest Step Account with no trouble at all, they even knew I was going to start the IVA process. I will be paying back 52p in the £1. Good luck, but definitely get in touch with a few of the companies on here, as I didnt come across this site until I had started the IVA process but wish I had. x
How long is your IVA running over mumofthree as I cannot see how that dividend can be achieved over a five year period, unless you have introduced other funds as well as your monthly contributions. Are they due to increase at any stage of the IVA?
It sounds as if they have calculated a sum relating to the equity in your property in those calculations - this may not be an issue, so long as the dividend was not guaranteed either within the proposal or via creditor modification.
It is unlikely that anyone in an IVA will be able to raise equity at the end of the five years via a re-mortgage, but you could introduce third party funds or extend the arrangement for a further year to address this.
Well Im hoping to end my IVA early in the third year, as my mum has offered to lend me some as she is having a insurance payout. Just hope the rest goes as smoothly as the first year
@ Melanie, I feel I could comfortably afford £200 that would allow me some leeway if interest rates go up and my mortgage goes up as I have a variable rate mortgage, I have no equity in my house.
Then I think that should have no problem in getting an IVA accepted, so long as you choose a firm that does not set unrealistic levels of expenditure for you - or tells you that you cannot do one if your income is less than £250.
