If I had an IVA monthly payment of £350 over 5 years and my debts were £45,000, how much would the creditors get and how much would the IP be paid? I'm not sure how much pence in the pound the creditors would get and I don't know whether this would be enough to satisfy them after the IP fees.
It would depend upon the fees charged by whoever you choose to represent you, but I calculate a return of approximately 33p in the £ could be offered which ought to be acceptable as it is around the national average offered in IVAs across the board.
Total contributions of £21,000 and normally the IP would receive no more than 35% which would leave approx £13,650 for creditors. This equates to 30p in the pound and is quite normal. The exact amount would depend on which creditors you have as different creditors and their agents have different fee structures.
It really depends on the IP you choose to represent you and their fee structure.
Regardless of this your creditors may choose to modify the fees your IP wants to charge. Based on The Insolvency Exchange's fee recommendations your creditors will receive approximately 35 pence in the £.
(The Insolvency Exchange represent a lot of creditors and their clients include M&S, HSBC, HBOS, RBS & Capital One)
Other voting agents have different fee criteria which will affect your dividend a bit.
Based on what you state your debts and surplus income is, you will be making a reasonable offer to your creditors, which should be approved by them. However if HSBC is one of your creditors and they have over 25% of your debt, then they ask for a minimum dividend of 40 pence in the £. If this is the case you may be able to improve your offer by making a few more payments.
The most important thing to remember is that your creditors will want you to make your best possible offer regardless of dividend.
The IP you choose or have chosen to represent you will be able to advise you on this once he or she has gone through your income and expenditure with you.
Kind regards, Elizabeth Pywowarczuk, Insolvency Practitioner.
If you would like me to advise you about an IVA and if appropriate propose one for you, please visit my website at www.liberta.uk.com
HSBC are changing their stance - see earlier post today (http://www.iva.co.uk/forum/topic.asp?wh ... 808#154519). Also there are many other IVA providers who charge less fees and I calculate that at least 35p in the £ is a possibility - shop around and get quotes from a number of other IP's. Visit www.IVA.Com.
Last edited by David Mond on Tue Dec 16, 2008 2:12 pm, edited 1 time in total.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
