robbing Peter to pay Paul

[MelanieGiles]

You could try an IVA, but expect Northern Rock to reject due to the low dividend. Alternatives are - a Debt Mangement Programme or declaring yourself bankrupt. Why not call Northern Rock, explain your situation and see what they can suggest?

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

[Adam Davies]

Hi
Not sure if I agree with Melanies 30p dividend.
£483 x 60 would be £28900,less IP fees of 8k would leave about 21k to creditors[less than 20p].I guess that Melanie is including your equity of 15k in the figures and this would indeed increase your dividend to 30p.
Do you expect your business to grow as the years go on ??

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

[stam]

Thanks Andy,

I hope that the busines will grow, but just keeping the customers I have has to be my priority. However if I base my income on the last 6 months rather than the year Apr to Apr I have just over £700 showing as disposable for IVA payment.
Some of this variation is due to having a lower amount of customers at startup of the business (first 6 months), some is due to time of year. However based on last year the months March through to September should be slightly higher so an average disposable income for IVA of approx £700 would seem possible. I'll need to look in more detail and try to project accurately to be more certain but perhaps this is a glimmer of hope,
regards
STAM

[MelanieGiles]

Yes Andy - that's exactly how I was calcuatind the dividend! As we know Northern Rock, and the majority of other creditors, expect to see equity raised as a matter of course during an IVA.

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

[Adam Davies]

Hi Melanie
Would creditors accept an IVA where the monthly payments resulted in a dividend of less than 20p ? Surely the equity cannot be guaranteed in any IVA proposal due to house prices possibly going down.
Just a thought

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 Andy

At present the benchmark of a minimum 25p in the £ is generally accepted in the marketplace as being minimum dividend. However when you talk to a lot of the creditors individually, they say that they do not operate under any criteria apart from viewing whether the case returns a higher dividend than in bankruptcy.

However, I don't think that you can get away from ignoring the property issue, and of course creditors are fully aware that no-one can control fluctuations in the property market. Dividends relying upon equity release can never be guaranteed.

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