Rent and IVA

[Martha07]

I am currently in rented accomodation paying £500 permonth rent. If my IBA is accepted and I move to somewhere with cheaper rent will I be expected to put the saving towards the IVA?

[Martha07]

Also if my IVA is rejected what are the chances of my creditors agreeing to a DMP?

[pbeck]

It depends on the terms of your IVA. Some IVAs only require income to be reviewed annually, in which case it you move somewhere cheaper you can keep the difference, other IVAs require expenditure to be reviewed too, in which case if you move somewhere cheaper then you will probably have to pay more to your IVA, however even if this is the case, you might only have to pay over a proportion, say 50% of the saving, in to the IVA.

Philip Beck - www.freeivaadvice.co.uk

Licensed Insolvency Practitioner and IVA specialist

[pbeck]

The chances of agreeing to a DMP are still high even if your IVA is rejected, however yo uhave to consider whether this will be worthwhile, I would not recommend entering into a DMP if this will take more than 8 years to clear off your debts expecially as it seems you are not a homeowner.

Philip Beck - www.freeivaadvice.co.uk

Licensed Insolvency Practitioner and IVA specialist

[Martha07]

My husband and I currently have joint debts of approx 34k and are proposing £280 a month in an IVA. Does this seem an acceptable amount to you? And i'm not sure how long it would take to pay that off in a DMP.

[MelanieGiles]

The general spirit of IVAs, and the way that professionals supervise them on behalf of creditors, means that any improvements in your financial situation - for instance from a reduction in property rental - be passed on to the creditors.

It would take you over 10 years to repay your creditors under a DMP - and that assumes that you pay no fees and that interest is formally frozen. The IVA seems a far better option for you, and I would say it appears to be acceptable providing you do not owe more than 25% to HSBC who have a higher acceptance hurdle rate of 40p in the £.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

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