I hope you can help me

[Chabybeeks]

Hello - I hope you can help me - I have recently contacted Payplan regarding an IVA - I owe £47000 to 7 creditors. I haven't yet missed any payments as my friend has been giving me £300 per month to pay two of my monthly minimum payments. He can't give me any more so I cannot make those 2 payments any longer. I have £300 more going out than coming in. Payplan have recommended the IVA - do you think I might be successful?

[scaredkez]

hi ancila and welcome to the forum i am not an expert but one will answer you shortly, you will be best giving an idea of what your income and expenditure is each month before you pay any unsecured loans credit cards etc and they will be able to see what your figures are and advise if an iva may be the best way for you to go
keep posting and let us know how you get on
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[MelanieGiles]

Hi ancilla and welcome to the forum.

How much can you afford to offer your creditors on a monthly basis through an IVA. This is not clear from your note, and you should take your income and then deduct your usual household and living expenditure (not including repayments to unsecured creditors) to see what you have remaining.

Once I have this information I 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

[princessb]

Hi ancilla,

With the initial figures you gave it certainly looks like an IVA could be an option for you but again I'm not an expert just another person in debt!

Don't want to let it lay me down this time, drown my will to fly....

[Chabybeeks]

for replying so quickly!!!! I take home £1431 per month - my outgoings (not including debts) are £700 so I could look at offering £700 per month. I don't yet understand the 'pence in the pound' thing!! Two of my creditors are MBNA and Virgin (also MBNA) - just read on the forums that they are not very understanding of IVA's - really starting to panic. Recently had a letter from Virgin to say that my monthly payment is going up and extra £70 per month!! Will it go against me that I haven't yet missed a payment???? If it wasn't for my friend I certainly would have years ago - I just want to be free of the worry and sleep again - please help :.)

[MelanieGiles]

Hi again.

I feel that your £700 is probably a bit high - do make sure that you provide for contingencies and things that just crop up once or twice a year like car road tax. I have a template on my website which you might like to use as a guide.

The "pence in the pound thing" is based upon the money the IP has left to distribute to your creditors, as a percentage of their total claims. So if you were to say pay £500 per month for 60 months giving £30,000, and assuming that costs would be approximately £9,000, this would leave £21,000 left to distribute to your creditors of £47,000 - thus providing a percentage return of 44% - thus 44p in the £.

MBNA are a little difficult at the moment. Make sure that you advise them personally that you are stuggling to make your payments and are looking at doing an IVA. See if they can suggest any better alternative to you, and make sure that they are aware of your other creditors.

Hope this all helps to make the process a little clearer, although I am sure Payplan should be giving you similar advice.

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