an IVA seems to be the best option for me

[kallis3]

Hi Toby,

The IP's fees are agreed in advance, and the creditors can say if they think they are too high, and lower them.

If you were to go into an IVA, then your payments will be assessed on your disposable income, and a dividend agreed. These payments can go up if you have a payrise or earn overtime or receive a bonus. This has the advantage of paying more back to your creditors, but you will never pay more back than you originally owed, plus the IP's fees.

You can make a full and final offer during the IVA and a meeting will be convened with your creditors to see if they will accept it. The offers usually need to be as near to the original dividend as possible and you must have a good reason for proposing it - money gifted to you by a third party is a popular one.

Approach as many IP's as you like - www.iva.com is a good place to check out a lot of companies, and reviews. They will give you free and impartial advice as to all the options open to you and the best way forward for your circumstances. Make sure that you are happy with the company that you choose.

If you own your own house, be aware that you will probably have to try and realise some of the equity in the 4th year to pay across to the IVA. If you are unable to, or there is no equity, then your IVA will usually continue for a further 12 months.

[David Mond]

Is it possible to put my details together and approach a few IP's for a draft IVA proposal and assess the quality of the advice offered and the IP fees (which are hopefully agreed in advance and not variable) and then simply go with the one I choose. Or are there factors which would not allow me to do this??

It is of course possible to put all your facts together, details of all debts, name and reference numbers of creditors,details of all your assets, details of all your income and expenditure etc etc - then approach a few IP's and listen to their advice. I don't think they will start drafting a proposal (if the IVA is considered to be the most appropriate solution for you) until you have formaly engaged them.

They will also indicate the fees that will be payable (in part by knowing the names and amounts of your creditors. That way the fee will be known.

Let us know how you get on.

[ivas4us]

I think the most imporatant thing is that if you feel that an iva is right for you that you make sure you will get a good service from your IP. There are some people that have had IVA's and had trouble after it has been set up getting thier IP's to do variations when things get tough. By all means shop around but make sure you will get what you need for 5 years as I don't think you can change IP's during the IVA. Cheapest is not always best.

[MelanieGiles]

It is very admirable that you wish to shop around to find the best deal regarding IP fees in the interests of your creditors. I would suggest that once you have had a chat with a few firms, that this may well form a lower priority - and that good advice and client care will become paramount.

These days you will not find too much difference in the IP fee structure, which is largely dictated now by creditors.

[Adam Davies]

Hi
Probably better to speak with several companies/individuals to make sure that an IVA is indeed the right solution for you before concerning yourself too much with fees.
Your payments in an IVA will be based on your disposible income and if this increases during the five years then you will ens up paying more into your IVA.
Regards

[toby100]

Yes thanks I will do

FI my circumstances are as follows:

I have a limited company for over eight years and unfortunately due to the recession I have been very badly affected and lost most of the work. I presently receive a salary of £5K and Dividend of £8K(est pa). I am continuing with the company in case things pick up and knowing that there is little chance for me to get a job at the moment. The company owes a little tax and there is no surplus money in it. I am 100% shareholder.

I have £64,000 of debts spread across 1 loan and about 7 credit cards (all unsecured)

I jointly own a house worth £185,00 (roughly -I think)
of which there is £140,000 owed on the mortgage (20 years left)

I own 50% and my friend owns 50% . My friend unfortunately wants nothing to do with my debt has it is not his concern. We share all household expenses 50/50. quite often he is not around as he works in another part of the country. We are not on good terms and have no formal connection whatsoever except joint mortgage debt.

My outgoings are clearly more than my incoming and I have long been considering doing something about it sooner rather than later.

we both agreed two mortgage breaks in which we both did not pay our mortgage for two full years. So this can not be done again.

I think an IVA sounds like a good option but am also a little concerned about whether I am classed as self employed or not and if this has an affect on matters. Also as I share the mortgage I was hoping to avoid my friend finding out or getting involved in my personal circumstances.

I hope this explains my situation well and hoper perhaps to speak to someone soon.

Regards

[Adam Davies]

Hi
Part of your IVA will be a clause to release some of your equity share in the final year so your friend will need to be made aware.
Do you have any borrowings with the limited company that you have personally guaranteed ?
Have a chat with some companies/people asap so that you can be clear in your own mind about all options available to you.
Regards

[David Mond]

Well you need to speak to an IP.

Your employment by your Limited company is not classed as self employed but I question whether you are still able to draw a salary or wage if there is little or no work? You certainly cannot draw any dividends unless you have prior reserves in the company from past successful years - your accountant should be able to advise.

As long as you both keep up tghe mortgage payments then no problems but as you will have sonme equity in your share this might have to be reaslised in month 54 and your co-owner would have to give consent to this and sooner rather than later.

As I have said speak to an IP.

[toby100]

no there is no personal guarantee on any debt through limited company

dividend payments to me are currently ok and not causing any negative/illegal affect in the company.

many thanks for your helpful advice so far

I will soon start gathering all paperwork etc together

[David Mond]

Glad to be of help. Toby100 - was your original post as wdst[?]

Don't forget to have a chat with an IP or two.