HI I WANT TO DO A IVA INSTEAD OF BANKRUPTCY BUT HAVE A QUESTION THAT I NEED ADVICE ON. ME AND MY WIFE OWE £46000 BEEN TOLD WE HAVE TO PAY £270 A MONTH FOR THAT TO WORK BUT AFTER NORMAL HOUSE BILLS WE LEFT WITH £230 THE OTHER £40.00 WE WERE HOPING TO MAKE UP WITH OVER TIME MY QUESTION IS THO IS THE IVA GONER TAKE 50% OF MY OVERTIME BE FORE I CAN EVEN PUT ANY OVERTIME WITH IT TO HELP PAY THE £270 I NEED ADVICE IF POSSIBLE
Can I recommend that you speak to one or more companies before making up your mind which route to take?
There are a lot of professional experts who post on here and you can find their details under the expert link on the left hand side of the page. Their advice is free and they will go over all the options available to you and advise as to the best one for your circumtances.
As to overtime, what normally happens is that you are able to keep the first 10% of that, plus 50% of the remainder. The other 50% goes to the IVA.
If overtime is not constant then I would not take it into account for the payments as if you don't get any you will struggle to make your full payments.
You need to be able to live reasonably comfortably for the next 5 years.
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
My IVA is first 10% of take home pay you keep, then split the balance 50:50 between you and the IVA company - you should be ok - although if this is regular it may be deemed as earnings
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
First of all - I am concerned that an IP is telling you that you have to pay at a certain level to make an IVA work. It is this sort of attitude which creates a high failure rate, and gives IPs a bad name. The IVA should be based upon your disposable income - which is £230 and not £270.
A payment at £230 would produce a return to creditors in the region of 20p in the £, which is perfectly feasible and one which is quite likely to be accepted.
If you do then earn overtime, you will be allowed to retain the first 10% of any additional earnings in excess of your basic salary, and the split the difference on a 50/50 basis between yourself and your creditors.
Hope this helps - and I suggest that you take advice from another firm or two, as personally I feel that you have been poorly advised.
Think carefully about your overtime payments. My hubby agreed to including some of his overtime in his normal monthly wage as it was regular. This was fine until he was off sick for 3 months which left us £130 per month down as well s the extra 10% of overtime he usually earned.A lot to loose on a very tight budget anyway but we were told that we had a better chance of it being accepted with a higher return.
Exactly! Using overtime money to form the basis for regular IVA payments is a recipe for disaster in my book, and ought not to be done - especially during the current economic climate, where overtime is one of the first things to be cut.
Melanie is 100% right and I think you need to speak to an IP that will put forward a proper IVA based on "affordability" not what has been suggested to you so far. Visit www.iva.com and see reviews on a number of practitioners that will give you the most appropriate advice.. My firm recently had an IVA approved giving a 17p in the pound dividend - all based on affordability! Let us know how you get on.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
I agree with the others - don't agree to anything that you can't afford. That was my mistake and I ended up going bankrupt after 4 months as there was no way I could afford the repayments.
If it's the right solution for you an IVA is great, but 5 years is a long time so it has to be affordable.
Hi can I thank you every one for all this advice
every firm I contact seem to up the iva some say £230 what I would go for but when calls come seems like they say goner be least £310 this be my second bankruptcy was discharged in jan 05 it concerns me but cant go on like this anymore anyway like to thank every one for there advice
Ian[:)]
Hi can I thank you every one for all this advice
every firm I contact seem to up the iva some say £230 what I would go for but when calls come seems like they say goner be least £310 this be my second bankruptcy was discharged in jan 05 it concerns me but cant go on like this anymore anyway like to thank every one for there advice
Ian
Why don't you have a look at the experts page - there are details of the IPs who post on the forum and they are all reputable. Melanie and David have both said that they are concerned that you are being told to make your payments fit your IVA rather than the other way round.
Good luck, and please let us know how you get on x
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
