If we default will this effect our chances of iva

[thebear29uk]

Also you've based repayments on 48 months but the IVA would run for 60. That said you need to remember that creditors will want to see the best return available. This means that the some of the equity in your property will be expected to be released into the IVA at some point. So payments of say £350 per month would pay £21000 in and an equity release in the 4th year of £20000 (basing on approx 90% LTV) would pay £41000 in to IVA. With IP fees added you would have total debt of approx £85000 would give 48p in pound. Obviously the mortgage payments would increase but your IVA payments would be coming to an end.

Dave

[ken.b]

Ok, this is sounding better. And your right of course, should be 60 months. I would be more than happy with £350 pcm and a release of 20k in year four. But are they likely to accept that?

Last question, who are the best Companies to deal with / apply for the IVA with ? Time to make the call !

[iva experts]

Hello Ken.b,

You sound insolvent to me as you can no longer make your contractual payments to your creditors nor do you have enough equity or assets that can completely pay your debt off.

The calculation would be as follows:
25p/£1 on a £76,000 debt = £19,000 +
I.P fees say = £8,000
Totals = £27,000
£27,000/60 months
= £450 disposable income is needed.

However because you do have equity in your property, a lower disposable income can be topped up by the equity you could release from your property.

It depends on your creditors as to when your equity gets released but usually creditors ask for the equity release at the end of an IVA.

As it is unlikely that you will be lent 100%, a general industry rule of thumb to release equity is 85% of your property value. Hopefully Tony Parsons (welsh boy) will be on later to advise.


Hope this information is of use

Regards. IVA Experts

[Sadsack]

Hi ken.b

Any of the companies who respond on these forums are brilliant! My only wish is that I was aware of this forum prior to setting my IVA up with my present company. It is in my opinion that you have done the right thing by posting here prior to entering into an IVA. "Shop around" (not with credit cards!!) and speak to at least 3 different companies before making your final decision.

Good luck and take care
S

[thebear29uk]

This is only my understanding of your situation but I'm sure if I'm way out Andy or one of the other experts will be along to correct me.

Also as a personal recommendation I dont think you can go far wrong by choosing Melanie Giles. She provides excellent advice on this forum and has successfully helped lots of forum members. I know Melanie is on holday until a week on Monday but if you visit her site www.melaniegiles.com you can fill out an application form and one of her staff will contact you.

Did any of the comments about your mortgage help? If so it would be worth contacting Tony Parsons as well.

Its often recommended that you should contact more than one IP for advice but contacting Mel will give you an indication of whether an IVA is viable.

Regards

Dave

[ken.b]

I need a new calculator.

Another last general IVA question. What if I start an IVA then i get a 5k bonus, will it just be taken or have I done the deal at the agreed figure?

[thebear29uk]

Hi IVA Experts

Tony may be away from the forum until the beginning of next week but he might be easier to contact on his mobile which is 07970 438874.

Dave

[aguise]

Hi again Ken
I knew they would all be along with advice. Have to agree that Melanie is great and so is tony (welshboy) on the mortgage advice side. Nice to see its gone from looking bleak as you said to a bit more positive.There is always a solution. Keep posting to let us know how you get on.

Ang

[Sadsack]

Hi Ken

you mention a bonus of £5K. Once you are in an IVA, any bonus would be considered a "windfall" and therefore would have to be made available to your creditors. I have a modification in my IVA which states that "any windfall in excess of £500, received by the debtor must be immediately paid over to the Supervisor for the benefit of Creditors".

Hope this helps
Sue