How much disposable income is considered too much ? Mine is taken up with payday loans.

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Robert.42

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Post by Robert.42 » Thu Jan 22, 2015 6:59 pm
How much disposable income is considered too much to take out an IVA? Is there a rough figure? On paper I look ok but the fact is I'm taking out payday loans every month which are taking up my disposable income.
 
 

Foggy

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Post by Foggy » Thu Jan 22, 2015 7:02 pm
No rough figure, if your disposable income doesn't cover the repayments you need to look at some solution and an IVA might be the way.

You really need to chat to an Insolvency professional. Try the IVA calculator on this site.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

Michael Peoples

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Post by Michael Peoples » Fri Jan 23, 2015 9:04 am
If you can repay your debts in full with interest and charges stopped in less than seven years a debt management plan may be a better option than an IVA. There is no yardstick but an insolvency firm will discuss all your options and you can then decide on what is best.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

simon1883

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Post by simon1883 » Fri Jan 23, 2015 9:50 am
Thats very interesting Michael. I was never informed of this. What difference would it have made to me? bearing in mind that I am in an IVA?>
Last Payment on Jan 5th 2016!
 
 

Michael Peoples

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Post by Michael Peoples » Fri Jan 23, 2015 11:17 am
It really depends on the individual case but many creditors prefer DMPs if they will be repaid in a timescale not much longer than an IVA. However if there is legal action pending or debts to HMRC then a DMP would not afford the protection of an IVA so would not be suitable.

If a client does have the ability to repay within seven years then if their situation improves they could actually be debt free in under five. However this assumes interest and charges are stopped and there are no DMP fees to be paid so a number of things need factored in.

Ultimately it is down to the individual and what advice they receive at the start. The client can then make up their own mind having weighed up the pros and cons. It is not an exact science by any means.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
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