One for the experts.

[Martha07]

I have just received and returned my draft proposal and I was just wonderin if this seems reasonable to the resident IP's.
Clearstart have dealt with my proposal. My husband and I are seeking a joint IVA on 34K.
Clearstart are proposing £180 for 16 months then when my circumstances change (ie. return to full time work when cjild goes to school and car hp ends) £230 for 14 months then £360 for 24 months. They estimate this at a 25p/£ return. This seems very low after reading some posts on here and I'm worried it'll be laughed at!

[iva experts]

Hello Martha,

Usually 25p/£ is the minimum standard that creditors & I.P's will accept otherwise an IVA wouldn't be viable. Just remember Martha that an IVA is "Individual", so it is based on an individual's circumstances which are always going to be different. For this reason you shouldn't compare your dividend to others as your situation will be different.

Have faith in your I.P, they would not be putting the case forward if they were not confident that it would go through.

[Adam Davies]

Hi
Clearstart fees are quite high at 6k and these may get modified down at the creditors meeting as they represent 40% of money collected.If so your dividend will rise.However do not be concerned by this at the moment,creditors will decide on the fees at the end of the day and as long as the creditors feel that it is the best offer on the table it will be accepted.The dividend proposed depends entirely on personal crcumstances and it certainly will not be laughed at,other members have had IVAs agreed at 18p,my own was 28p
Good Luck

[Oliver]

If this is your best offer then your creditors will make a commercial decision on the proposal and compare it with Bankruptcy so don't worry too much about your dividend being on the lower end of the spectrum.

The best of luck to you.

[ianmillington]

I don't see that the dividend in itself will be that much of a problem. I perceive that creditors are becoming a little less concerned nowadays about the Raw recovery and more interested in how it is made up i.e can you actually afford the payments, so as long as you can genuinely afford the payments I don't see it being a problem.

Ian

[MelanieGiles]

I am reliably informed that hurdle rates are now a thing of the past, although we will see if this actually works out in the long run.

Just be careful about agreeing to increases to time with events that you may not be able to comply with - ie are you definately going to get a job when your child goes back to school - how easy will than be to do?

[Martha07]

With returning to work I am currently on matrnity leave and will be returning part time to worl when my maternity leave ends. The Hp agreement on my carf ends in 2 1/2 years so understandably the spare cash will be paid into the IVA.

[ianmillington]

I'm happy with the idea of payments going up when the HP ends (so long as you think the car will still be OK then). Is it certain you will return to work full time after month 16?

Ian

[Martha07]

It is written in my agreement of returnig to work that I will return full time. I'm lucky in the fact that I don't have any childcare costs as my mother in law will be looking after my daughter for the time that I am zt work.

[ianmillington]

That's good, Martha - I was just a bit worried that you might be making a future commitment that you might not ultimately be able to deliver.

In view of what you say it seems a pretty sensible game-plan. I imagine you have prior to all of this considered bankruptcy and discounted it?

Ian

[Martha07]

Yes. As we do have some disposable income we wanted to pay back what we could. We did, afterall, spend the money in the first place. We do have a slightly higher disposable income but our insolvency case officer advised us that we appeared to be living on the bare minimum. I guess we are so used to living on a budget as all our creditors were paid in full up until we had the baby.

[ianmillington]

Good luck with it - with your ethical approach I'm sure it stands a very real prospect of working.

ian

[jpj]

Dont worry too much Martha07 ,your IP knows what your creditors will probably accept. My IVA was 18p in the £ , and was accepted no probs!
You have a right to a half decent standard of living ,even in an IVA !
Good luck.