I have recently posted about what happens when your job is basic salary plus commission based, and I am gathering that most IPs will base the payment on your basic wage. My concern is that the kind of payment I could afford from my basic wage might not be enough. I read on the 'IVA pros and cons' link on this site that one would need at least £170 a month, which is probably ok, the thing is though, my debt totals in excess of 60k...would creditors just laugh at such a return?
Also, I have been very irresponsible, everything went wrong for me financially in 2008 after a split with my fiancee, and since then I've just ignored the problems and have been relatively unharrassed as I've kept moving addresses! Will this go against me in an iva proposal?
Strangely little debts like phone bills have always managed to find me...yet big debts like my mortgage shortfall and large unsecured loan (both held jointly with the ex) I haven't heard a peep out of! Why might this be?
I don't think £170 is the minimum anymore. Some companies set a minimum that they will work with but other take £100 per month. Ours is £310 between us and our debt was 80k +.
It's all about affordablility so they won't laugh at any offer. And you know that you'll be able to pay more over the term with 50% of the commission (above 10% of your normal basic).
I don't think any of your circs will go against you. You have shown that you are taking control of your debt problem and are willing to pay back as much as possible so it's probably a positive.
My maths aren't that bright at this time of day (not much better at any other time!), but your paying back around 16 / 17% (less fees). I have seen as low as 9% accepted.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Mine was only £107 per month at the start my total debt is about £40K, I've increased it now I'm better off!
Pretty much all of us have tried to ignore our debts for a period of time, whether it be long or short, most of us are guilty of burying our head in the sand at some point so it won't count against you
"It is never too late to be what you might have been"
Fiona
we beat ourselves up so much at this point. IF you can recognise why you ended up in this situation you can sort it out,learn from it & hopefully not go there again.
it's hard to grasp but creditors aren't intrested much in how you got to this - they just want their £ back. all debt will catch up with you eventually. make sure you include everyone.
my hubby had his head so far into the sand he scared me to death. he/we are doing well with the new budget.
give yourself a break now,it takes courage to face the problem,things can only get better now[;)],you're not alone.
Nothing stays the same...everything changes..hang on in there!
It's not about better or worse dividends peoples, the creditors only look at our proposals against our own ability to repay. So we are all offering them the best return...no-one's dividend is worse.
Paul, I don't know if she's paying anything. I haven't spoke to her since we split and I haven't seen my credit file since either! Jointly we had an unsecured loan for 25k and also our house was repossessed, outstanding mortgage was 90k think it sold for 70k...so jointly we owe 45k on the back of the house repo. This was to northern rock.
Hi Paul
I think if you receive regular commission an IP will use a six month average in determining your total income.
Don't worry about minmimum dividends, it is all about the best deal on the table and as you have no assets then bankruptcy would return very little compared to the IVA
