Quick Estimated Dividend Question

[Hookdex]

Hi All,

I am in the process of putting a F&F together and I am struggling to see how my IP has calculated my estimated dividend of 40p when I make it 57p if I complete (I have never increased payments).

I am still significantly over the 40p if I add my ip fees. So the only thing left is interest - can anyone tell me if estimate interest is included in my dividend?

Thanks

[Tomoose]

Have you taken account for all fees, i.e. nominees fee and monthly supervision?

[Hookdex]

Yes, the nominees fees being the first four payments and supervisor fees at 15% of all realisations (even though I was charged 10% by my first IP charged 10% before it was transferred to GT). I have even included unreclaimable VAT!

[Hookdex]

My total debts were £33,674 against which if completed I would pay 72 x £265 = £19,080 (57p). If I add supervisors fees at £2,862, nominee fee of £902.00 and vat at £650 (17.5% as average) I get a total of £38,088 on which the dividend would still be 50p?

[Hookdex]

Sorry, Im being stupid arent I. I need to take the whole fees from the payments and then calculate my div. Ignore me!

[ginger3232]

Hoodex - Vat is at 20% now

Have a look at your proposal - it should break all the fees down.

Honestly - unless you are planning to offer 100% as f+f settlement - would not get to hung up on the IP fees.

At the start of your IVA the creditors would have had to agree these fees, meaning they are taking a smaller cut.

[animaleyes76]

[Tomoose]

My total debts were £33,674 against which if completed I would pay 72 x £265 = £19,080 (57p). If I add supervisors fees at £2,862, nominee fee of £902.00 and vat at £650 (17.5% as average) I get a total of £38,088 on which the dividend would still be 50p?

You're doing it wrong! [:p]

Your payments total £19,080. Deduct all the fees:

£19,080 - £2,862 - £902 - £650 = £14,666

£14,666 / £33,674 x 100 = 44%

Hope that helps!

Edited to add - I see you've sussed that out, I had the message box open for ages in the background before posting (I'm at work), sorry!

[Hookdex]

Ginger - I did say as an average at 17.5% - my iva has been running since 2007.
I was just working though to see what the dividend was on my F&F compared to if I let it run.

Would a reduction to 34p per £ be laughed out? (I have been told I am being considered for redundancy)

Thanks for the help guys.

[Tomoose]

Where would the money be coming from?

I'd make an offer of the remaining payments, less the monthly fees for those months, and knock a bit off for luck.

[Hookdex]

From a select number of friends who will lend me £1k each and wait until I get a job sorted before I pay them back!

When you say "a bit", with the money I can borrow I am attempting to knock about £3k off and pay the other £3k.

[ginger3232]

Hookdex - you mentioned redundancy ! - is there likely to be a lump sum award ?

Reason why i ask - some of this might need to be incorparated into the IVA, and they might refuse to close this IVA if money is likely.

[Hookdex]

Oh really?! My redundancy will be c£1,500 - I assumed I would be left with this to tide me over until I got a new job? Its not exactly a buzzing economy for employment and I do need to eat!

[kazzafunk]

You can be allowed to keep up to 6 months of your redundancy (based on your normal monthly income). It's usually up to you to discuss with your IP.

[Hookdex]

Thanks I understand. I am more than happy to argue that with my IP if necessary. It is just a shame I have to wait SIX WEEKS for a variation appointment with GT to even discuss it!