Money

[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

[aguise]

Hi Mimi
When do your expenditure allow for things like dentist, prescriptions, if you have them,clothing everything car tax insurance etc ,anything that is left is your disposable income and creditors will expect that to be paid topwards your debts, what is left sets the amount you pay, that is why it is so important to get the expenditure right at the beginning otherwise it can be a struggle to survive an iva.Luxurys are not generally accepted. Some will have an emergency fund say £50 per month for repairs and replacement of necessities.

Hope that helps
Ang

[Adam Davies]

Hi Mimi
Aguise is quite correct in that you must be realistic with your expeses,the money that you have left over will be classed as disposible income and ALL of that would go into an IVA.However on debts of 28k you would be better looking into a debt management plan as you could pay your debts in full over 5 years if you paid in £500 per month.Your creditors would be unlikely to accept an IVA due to your high disposible income to debt ratio.
Hope this helps

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[MelanieGiles]

Hi Mimi

That depends upon what you deem to be "spending money". Make sure that you are able to account for all of your expenditure by categorising everything you spend. Your £750 for outgoings looks on the low side to me, and do be sure to include provisions for contingencies such as house and car maintenance, medical and sundry expenses.

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