The 50% rule

[Spunky]

Hello everyone I'm going to find myself in an iva or debt management soon just wondering I thought it would be one payment and that was it but reading into it further it seems they will take 50% of any extra income agreed, I wouldn't have any problem with this but as well be doing everything cash only and based on an income to clothe and feed what happens if my boiler broke down or I need to make repairs to my van to get me to work? Is there any leeway or would they like to see us bankrupt eventually anyway? I'm self employed so my wage can fluctuate thanks for any replies

[Foggy]

Hi Spunky, I suugest you have a look at www.iva.com and speak to a few of the IP firms recommended there ( advice is free). You will need to specifically ask if the IP is experienced in dealing with self- emmployed.

Once in the IVA you can request payment breaks ( to be made up later) to cover costly emergencies.

[Spunky]

Thanks foggy I will I never thought I'd be in this situation we don't live an excessive lifestyle I'm in negative equity with my house and tbh I don't know if I'm better of going bankrupt and starting over again I can't work any harder than I am to pay the bills plus when interest rates go up I'll be screwed and on top of that I can't save any money for emergencies great I'm looking forward to the gas and electric rises and food going up again oh and diesel hey ho good old England

[Shining]

Hi and welcome to the forum from myself too. A great link provided by Foggy as a starting point, do talk to 2 or 3 companies to ensure you receive case specific advice which will be impartial. A face to face meeting will be required for self-employed when entering an IVA with your IP or a senior member of the team. You will have allowances for all expenditure and your disposable income will be paid into the IVA.

A contingency fund can be accrued from allowances for unexpected expenses, and in the unlikely event you don't have the monies for these, you can request a payment break which will be either made up over the next few months or in some cases tagged on to the end. x

[Spunky]

Thanks Lesley

[MelanieGiles]

Self-employed clients need a little more care and attention than those with a regular wage, and for my own self-employed clients we will tailor the IVA proposal to deal with peaks and troughts of trading and to build in a little more contingency.

Most IPs are actually self-employed as well - and trust me we also suffer from wildly fluctuating income, but the key is to choosing a firm with expertise in this area.