Minimum payment for an IVA ?

[Syed63]

hi for iva whats a minimum payment i can do for 35000 thanks

[Foggy]

Hi Syed. The payment isn't worked out on the amount of debt, but on how much you can afford to pay ( your disposable income) after expenses have been catered for.

It's best to chat to a couple of firms to get some realistic figures worked out.

[Michael Peoples]

Most firms would not do an IVA for less than £100 per month so you would need to be able to afford at least that amount.

[ClareSilver]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Michael Peoples

Most firms would not do an IVA for less than £100 per month so you would need to be able to afford at least that amount.

However there are SOME firms out there who do. Not really feasible though in my opinion........

[Shining]

Have a chat with a few professionals and they can go through and income and expenditure with you alongside chatting about all debt solutions that will fit your need.

Welcome to the forum by the way.

[2year2go]

This is an interesting question. At what pence in the pound is the typical point that creditors will push for bankruptcy instead of IVA?

[ClareSilver]

When an IVA is presented a comparison is done with bankruptcy showing p/£ for IVA and bankruptcy. IVA's will always show favourably.

There's no 'typical point' where creditors will push for bankruptcy, however they may still reject the IVA. If the IVA is rejected and the debtor does not wish to go down the bankruptcy route, then a lot of the time the debtor will enter into a DMP which will gives creditors 100p/£ providing the DMP completes.

It's unsual for a creditor to make someone bankrupt these days particulrly if there are no assets as it costs the creditor and they may not end up with anything.

[nickjohn]

it does vary wildly, when we had our very first consultation meeting we were advised that monthly IVA repayments had to be around 10% of your total debt (e.g. £30,000 debt = £300 / mth repayments)..

We now know that this is not true

[jules64]

Hi,

My debt was £34,500 and my payments are £229 - I believe mine is 61p in the pound

[nickjohn]

Wish my return was that low

[janez]

my debt is 32000 and i pay 225 a month

[MelanieGiles]

David Mond at ClearDebt will do an IVA with a minimum payment of £50 per month, and it is not up to IPs to judge on viability if there are firms out there willing to act on low DI cases. Feedback from one of the main creditor representatives indicates that lower end DIs tend to work better than higher ones - and if an IVA does not fit a specific firm's acceptance criteria - my own is no less than £120 per month - they should refer them on to a firm who can.

[nickjohn]

At £120 per month and fees of 15% of payments received there can be very little incentive to do the work in the first place..

I can see why work gets past down the line to juniors when you have a fee income of £216 per annum (15% of 12 payments x £120/mth)...

[MelanieGiles]

Not on my watch nickjohn. But the point you make is sensible. Creditors are incredibly unrealistic about the fees they allow IPs to charge, which is why we have see so many firms exiting the marketplace over the last 5 years - and I predict this will continue as firms continue to chase numbers to keep their cupboards full.

[Foggy]

This is where the "big boys" step in with a low unit return vs. a high unit turnover, coupled with minimal resourcing.