www.iva.co.uk

i owe just over £20,000 i have been unemployed but now am starting a new job. I am married and i got one dependant child, my earnings will be £250 per week. what will be the minimum amount i will have to pay bearing in mind i have about 10 creditors. i am a council tenant yours steve

Hi Steve, welcome to the forums

The key issue is how much disposable imcome you have left at the end of every month

Welcome to the Forum Steve,

In an IVA there is no distinct minimum amount but usually an IVA will be viable if your disposable income is at least £200-250. Your disposable income is your monthly income subracting your general living expenses (not including minimum payments).

Could you list who your creditors are? This is important as most but not all creditors ask for the same dividend.

Remember an IVA is as its name states 'Individual', so each case is different as it depends on the individual's circumstances. This means one person could be offering 25p/£ back to their creditors and another will offer 100p/£.

Best Regards,
IVA Experts
http://www.iva-experts.co.uk/

what would the reason be for Mrs Jones paying 25p/£ and Mr Smith paying 100p/£....would it be based on affordability....?

Angie xx


My IVA Story......http://bagpuss.blogs.iva.co.uk/2007/09/ ... iva-story/

Hi Bagpuss,

To be honest cases where someone pays 100p/£ are not too frequent but usually it is because they have a high income and low expenses meaning much more disposable income OR sometimes if a windfall is received its possible to pay 100p/£ plus I.P fees and Statutory Interest.

Also if someone has a high disposable income and equity to release, the creditors could ask for monthly contributions and an equity release causing it to reach 100p.

Best Regards,
IVA Experts
http://www.iva-experts.co.uk/

An IVA as its name suggests is individual, meaning that someone will have to pay their creditors to the very best of their ability.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

If we are serious in entering an IVA we should never be looking at the "minimum" that we can pay back to satisfy our creditors.

We have borrowed this money - things for whatever reason have changed. Whatever - we MUST take the view that we must pay back the maximum possible percentage to Creditors. There is no other honest way to approach it.

To repeat my view from before - if you lent a friend £100 and he then came back and said that he had also borrowed £100 from Tom, Dick, and Harry and said - Sorry - I am only giving you back £25 each then you would be mad. So would I!!!! You would want the maximum possible back.

Good Luck steve.e - hope you will find the right solution - and best of luck.

Hi Optomist
A valid point but remember these loans are made to make money,unlike a loan from a friend or family.Also I fully agree that you should try to repay as much as possible,but with limitations.Afterall anyone in debt could go on a debt management plan for the rest of their working lives and this will return more than an IVA or bankruptcy but nobody would want to do this.
It's all about the best return available under the circumstances.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

I agree with Andy. If my mum lends me money she would not charge interest and therefore wouldn't make any money. If a bank lends me money they will obviously charge interest and a nice profit.

I agree that anyone entering an IVA should do so with the intention of paying back as much as possible, but they need to be able to have a reasonable standard of living for the 5 years. I don't mean living in luxury, but being able to afford the basics in life.

5 years is a long time on a budget, let alone one that is so tight that you can't live.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

I agree Skippy,obviously the reason most people try the iva route is to offer there creditors as much back that they can realisticaly afford its when they are set unrealistic amounts just to get there iva excepted hence the amount of iva's that fail within the first year.

Tracy

Otimist

I agree that we should be repaying as much as we can but people do have to live and have some quality of life, I disagree with your point though. I wouldnt phone up my family asking them to take a loan and making a profit on what is returned. Lenders dont care, family do, and I wouldnt lend anyone money if I knew they would struggle to pay it back, or expect or demand they pay back x amount when its clear they cant do it. Your example is a little flippant, I didnt borrow the money that caused my debt with any intention of not paying back the full amount, who would? Most people who find themselves in debt will worry and feel ashamed of not being able to pay their debts. Although the spirit is to return as much as possible, it has to be remembered that lenders do sometimes take too much of a chance and do not consider a change in circumstances.

lily

Lily
You always say it so well.xx

Well said Lily, I totally agree with you.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

Thank you for those replies - but from my small corner I will stick to my guns.

I am in an IVA myself and feel passionately that - having been given this opportunity - I want to pay back the maximum I can. I know some of my Creditors were frankly daft to keep offering me further credit when it should have been obvious that I was on extremely thin ice but it takes two to tango and I was just as stupid to take them up on their offer.

I read all the daft ads saying "write off 75% of your debts" etc. etc. but - from the start I realised and WANTED to repay the max. When I signed the CONTRACT that goes with each credit card I was making a two way agreement. My creditors made no secret of the fact that it was a commercial arrangement and of course I understood that they were not a charity - and would charge interest. It was of course then stupid for them to increase credit limits and then to increase interest rates to a crazy 27% per annum!!! The outcome was inevitable.

However we all got into the mess we are in - for a huge range of reasons - and I think it is important to enter an IVA in the right spirit and that will inevitably mean 5 years of hard times.

Regarding the comparison of a debt from friends / family and commercial creditors I still think that the moral requirement to repay both is the same.

In conclusion I am going to try b***** hard to make the maximum payments throughout my IVA. If it fails it fails - but (at the moment at least!!!!) I am not even going to contemplate failure. If I last the 60 months I will finish it knowing I have kept my side of the bargain - if it does fail I will know that I tried my best and will admit defeat with my head held high!!!

All I am trying to say in my rather clunking way is - if you are thinking of starting an IVA then approach it with the right attitude - that you are going to repay the maximum you can.

Thank you and Good Night!!!

HiOptomist
Quote "All I am trying to say in my rather clunking way is - if you are thinking of starting an IVA then approach it with the right attitude - that you are going to repay the maximum you can."
I can't argue with that point at all.
An IVA is not an easy option and must not be seen or marketed as an easy way to get out of paying your debts.
I think we are all in agreement on this forum
Regards


Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp