www.iva.co.uk

If we went for an IVA, we would be paying around £885/month for 5 years with a repayment of approx 63p/£1.

There is an option for me to work overtime shifts for a reasonable amount of money but this is not guaranteed. However, I should be able to get an average of one or two per month over a year.

How is this extra income figured into the IVA? Are we allowed to save it up then offer a lump sum to reduce either the time of the IVA or the amount owed?

I would really be hoping to pay back 100% of the debt this route, but using the IVA to freeze interest and make us debt free in 5 years if I don't get enough overtime work to pay it all off.

It would all depend on the wording in your proposal. Most now have a 50% clause meaning you pay over half and the other half is yours.

If the IP you choose to represent you uses the newly introduced IVA protocol as the basis for their standard proposals (and do check this because creditors tell me that the majority of proposals they are seeing are still not protocol compliant) then you will be allowed to earn up to 10% of your basic wage each month before the 50/50 split applies.

This then becomes your money to do whatever you like with - and if that means that creditors benefit from a lump sum settlement everyone will be happy. What a positive attitude from someone looking to start an IVA. I wish you the very best of luck with your application.