IVA Proposal

[chris_01]

Hi to all, I have just recieved my proposal today, I owe £36000 (unsecured) to 8 creditors, I am single & living in rented accomodation, my monthly income is £1350 my total expediture is £970 pcm, The debt soloution company dealing with my case proposed I pay £494 pcm, which works out at 56p in the pound, I would like to know if this is about the right figure, and also in my proposal they had written my monthly income at £1464 not £1350 I am not sure why ? I am getting very nervous about the whole idea of an IVA. Any feedback will be appreciated, Thank you.

[Jo Rolland]

If they have based your income £114 higher than you actually earn, it would mean that the contribution proposed could be unsustainable. This could result in you not being able to maintain the agreed payments and an IVA failing.

Is your income a set £1350 per month or could they have taken an average from the past few months. I would take this up with them before any proposals are made to your creditors.

Also did you only contact one company, as I would recommend contacting at least two.

[emma_t]

Hi Chris

Although you must feel relief at getting your proposal and want to get things moving as quickly as possible, make sure every detail is correct and the fact that your wage is stated as higher than it is a bit concerning. I would get straight onto your IP and get this corrected.

With regards to payments, your iva is individual to you and your affordability - so someone else with the same level of debt may pay a completely different figure, based on their disposable income.

56p sounds a very good offer and the majority of all iva's proposed are accepted by creditors (over 80%), so have faith in your chosen IP and good luck.
Emma x

[chris_01]

Hi jo and thanks for the quick reply, My ip was saying something about an average for my monthly income, but not sure how he got to that figure, and I have only contacted the one company. Thanks

[chris_01]

Thank you Emma, your words are reassuring.

[Jo Rolland]

Chris, is your income static?

[chris_01]

No it is not static, it goes up and down each month, the lowest is £1350, the highest is £1390.

[Adam Davies]

Hi
Well where have they got £1464 from ?
You must contact them and get the proposal amended and sent out again.
Regards

[ianmillington]

Hi Chris

I would agree. From what I gather there appears a risk here that the VA will be unworkable from day 1. I suggest you ask the proposed nominee for confirmation of how your incopme has been arrived at.

You are not by chance paid 4 weekly are you?

ian

[size5]

I suspect strongly that Chris is paid 4 weekly rather than calendar monthly. 1350 times 13 and divided by 12 comes out at 1462.50 by may calculations, which is near enough.

[Adam Davies]

Hi
Good point
Regards

[chris_01]

Thank you for your replies, I had spoken to my IP, And Ian is right , they thought I was paid 4 weekly which is not the case, I am paid calender monthly on the last day of the month, he looked at my oct and dec 07 payslips and seen I was paid a few days early, but that was because of xmas.

[MelanieGiles]

Well that is a silly mistake to make - your wage-slips should have been examined properly at the time your proposal was being drafted. It is good that you have picked it up at this stage, and the proposal can be easily amended and reissued to you to sign.

[ianmillington]

Hi Chris

All other things being equal then your contribution ought to be £380 and the dividend 43p in the £.

An object lesson in how it pays to actually look at your proposal[:)] You will no doubt wish to go through the rest of it with a toothcomb, which is definitely the right thing to do.

If there is anything you don't underrstand, come back.

Ian

[iva.com]

Hi Chris 01, Hope things are running more smoothly for you now. I would like to remind you about the review boards on our web site. When you have settled into your IVA and have experience of your IVA provider you can record it on our boards for the wider community. Much luck for the future.

Many thanks
Susan Macdonald