I am seriously considering an IVA. Between me and my wife we have debt of around £30k. We have a combined income of approximately £2600 after tax with expenses of approximately £2000 so a disposable income of approx. £600 each month.
If I entered into an IVA how much of that £600 disposable income would be used. Would it take it all or would it leave some so that emergencies, breaks for the kids & other things like that could be catered for?
Like I say I'm giving it serious thought as I want to get to a stage where I am debt free.
Any advice you can offer would be really helpful.
Hi there. Im going through the process now, just waiting for my meeting of creditors. I have spent many an hour wondering whether to do this but kept coming to the same conclusion, cant keep going as I am. Things aren't too bad at min but when the 0% is gone it will be horrendous. Have a chat with some different companies, this forum is a godsend though so keep coming on. Make sure you have some professional advice though as it is a big decision x
All of your disposable income will be taken once a realistic budget has been set.
If by breaks you mean holidays, there is no allowance for this. You are free to earn some overtime and make savings in other areas though that can cover this. We have not had a proper holiday for five years but we did have the odd short break mainly in £19 travelodge rooms. However, we will soon be completely debt free so the holidays were a small sacrifice.
Read the reviews and blogs and call a few companies. It has not been an easy ride but it has been worth it.
Thanks for the responses guys. This makes me think a DMP may be a better way to go as with the disposable income we have we could pay those debts off fully in the 5 years the IVA would last. Obviously that's subject to getting the interest and charges frozen but it could allow us to pay a significant chunk towards debt each month and allow just a little bit left over
For a DMP speak to one or both of the main "charity" companies like StepChange or Payplan as they do not deduct fees on DMPs (being funded by the banks). However, personally, I wouldn't use them for an IVA.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Have you had your income and expenditure checked by an insolvency firm? The £600 you have left may not actually be realistic as many people leave out school meals and trips, meals at work, haircuts, sports & hobbies, sundries etc. These are all allowable expenses and can make the IVA payments affordable for the five years.
If you still have a surplus of £600 then a DMP or even a consolidation loan may be appropriate depending on affordability and availability.
It costs nothing to do an I&E and if you want the current expenditure guidelines drop me a line and I will email them to you.
