IVA

[Broke77]

Hi
National debtline has recommended me for an IVA and I have also spoken to another company who suggested the same.I have around £35000 debt and I can only pay around £150 a month, which in five years will be £9000. I am worried if this IVA would be agreed as it only pays off about 15% of the debt, after deducting the IP fees. Can anyone please give some insights on this.

[Shining]

Hi and welcome to the forum. Sometimes within an IVA others things such as uplift payments, windfall etc. can be payable into the IVA which increases the dividend to your creditors. Do you own a property?

Do talk to 2 or 3 professionals to ensure you understand an IVA before proceeding. 60 months can be a long time but having said that an IVA is an excellent debt remedy. You will be protected by your creditors and have a set number of payments to make. Once you have made all your payments etc., you will be debt free.

Have a look at www.iva.com or ask the professional IP's who post on here if you require some case specific advice. x

[Broke77]

Hi Lesly

Thanks for the reply. I do not own any property. So no assets to include.
But not sure what sort of % creditors would agree as a minimum....

[Shining]

Each IVA is individual and so long as your best offer is on the table then creditors generally agree. A good IP can write a good proposal showing that all disposable income is to be paid to creditors whilst leaving you with enough for various allowances.

[Niobe]

Welcome from me as well

There is no minimum dividend - speak to an expert as suggested by Lesley. The advice is free.

[kazzafunk]

Hiya - our IVA was approved on 17p in the £. It's all about affordability and if creditors see that's all you can afford then they normally go for it.

Also, in that 5 years you may pay extra with bonuses or overtime so it's possible the dividend would increase over the term.

[Broke77]

Thanks Kazza

[Broke77]

Hi
Thanks for the info so far. I am confused now. When I contacted National Debt helpline and went through budget, they are suggesting that because I only got 150/170 pounds per month, I should go for DMP. Because they are saying that they dont normally recommend IVA if we cant pay more than £200.
At the same time when I contacted another company they have calculated and worked that we got around £150/170 and they are happy to do a IVA. When I raised my concern regarding low amount, they are very confident that they would approve the IVA.
Any suggestions?
Also could anyone gone through IVa recently and would like to know few companies so Ican contact them.

[size5]

Some firms will look at a low contribution IVA, but could you clarify whether it is a sole IVA or joint, as you seem to use "we" a lot? £150 to £170 per month is fine if it is a single case and your best offer, but not so great if it is a joint problem you are facing.

Not impossible, but not ideal either.

Regards.

[Shining]

Cleardebt are a company that is represented on the forum by Mike so he could be a point of call for you. I'm personally with Melanie Giles who also posts on the forum.

[Broke77]

Hi Size5

Its going to be single IVA not a joint one. As all the debt are in my name and my wife doesnt work.

[size5]

If that is your best offer then should you wish to have a crack at it feel free to do so. It is your decision alone. Creditors may want to know why your good lady doesn't work, maybe a young family, illness, redundancy or whatever, but notwithstanding that it is not for any debt advisor, or firm, to say that a proposal would not be successful, but of course they can give you an idea of the odds of success.

They should also take you through the pros and cons of all options you have, not just the IVA route. That way, you can be safe in the knowledge that you are making your own informed decision.

Regards.

[Broke77]

Hi

Regarding assets, my wife got some share certificates which she got from her father. Current value about £1000. Do I need to disclose this during my IVA.

[Foggy]

If they are in your wife's name and the IVA is solely yours, then no, they are of ( or should be) no interest to your IP.

[Sam Hawkins]

Hi Broke 77 welcome to the forum. I have just got off the phone to someone who contacted me on here for some free advice who was considering an IVA. He contacted me via the forum and we had a very long chat.

The whole IVA v DMP is very confusing on times and when you speak to an IP they need to consider what your best option is. In some cases this may not be an IVA or DMP but may well be bankrutpcy.

There is some very useful advice posted above but IVA or bankruptcy are both a legal process and should be entered only after you have considered all your options in full. My conversation this morning weighed up the pros and cons to both procedures for that individual.

The client I advised this morning was best suited to bankrutpcy but only after we had considered his potential inheritance from a fit and healthy parent. This is why it is so important to get it right.

An IVA will be a major part of your life for a long time and as it has been pointed out it is a very good solution to dealing with debt but is not always the right solution for everyone.

As for dividend rate in an IVA, provided it is the best offer you can make and the alternative would be nothing, creditors may well take a pragmatic view and accept a low sum. The lowest I've had approved was 10p/£. The rate will vary on your individual circumstances.

Keep posting and asking questions or contact an expert direct as advised.

I hope this helps.

Sam