If i were to set up an iva

[mimi]

My current repayments to loans credit cards etc are approx £800. After a take home pay of £1500.My current monthly outgoings are approx £750 for rent food travel etc (currently living off credit card and borrowing money off family for spending money. If i were to set up an iva would they take everything other than living expenses or would i be allowed to have an allowance for spending money. And also would £400 per month be a resonable offer for outstanding debts of around 28k

[MelanieGiles]

Hi jc1

I think that this post has been input a few days ago, however I will answer once more!

It really depends what you mean by spending money. Creditors will not allow a socialising, holiday or Christmas fund, but you do need to provide for all your legitimate expenditure including medical expenses, car and house maintenance and a general provision for contingencies which I usually include at £50 per month.

The spirit of an IVA is to pay as much as you can afford, but do make sure that you are realistic with your expenditure as you have to pay for 5 years and that is a fairly long time.

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

[finebridge]

Hi jc1,

It may be an idea to call one of the experts and discuss your income & expenditure with them as they can advise you on what creditors accept and what expenses they may decline. You would then know your surplus income amount and be in a better position to decide if an IVA is right for you.

Kind Regards

Nicola


Finebridge Ltd
22 Laud Street, Croydon, CR0 1SU
0800 180 4212
www.finebridge.co.uk

[mimi]

i have taken advice today and have been told that out of my take home pay of £1508 i have £471 disposable income. This is the amount i am prepared to offer my creditors with debts of £28000

[MelanieGiles]

Hi Mimi

Are you sure that this figure is affordable? If you pay that sum for five years, you will be paying in as much as you owe now! Creditors are known to not favour such proposals, but obviously you must pay over as much as you can afford. Does your IP think that this offer will be acceptable?

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

[mimi]

It will be a little tight but it is nearly half of the monthly payments i am paying now. I have gone through my figures and because i still live at with parents can afford to do this. i was told that the creditors would like you to pay as much as possible. i also told them that i owe my parents £8000, and am unsure whether this will be taken into account. Only made the phone call today so have had nothing on paper as of yet

[MelanieGiles]

Mimi

Do make sure that your parent's debt is included. The other creditors may ask them to stand aside for dividend purposes, but they do have a valuable vote on the day of the creditors meeting which could be important.

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

[mimi]

thank you for your help, its very much appreciated at worrying times like this