www.iva.co.uk

Due to covid-19 my new business I set up in February 2020 as not gone to plan

I currently have £67,000 debts which is made up of 4 overdrafts and 10 credit cards
The question is simple I currently get £410 in UC and have moved back home with parents. I give them £130 a month to cover food and use of the car. The only other 3 costs are £30.00 mobile, £35.00 gym £25.00 petrol & going out once a month £20.00 which leaves me £170

Can I do an IVA on £170 a month for 6 years as this is works outs to £10,200 which is 15 percent of £67,000 as this website says write up to 90 percent of your debts can be written off. Hopefully things will pick up and I am looking for work so that payment can always go up.
If this is not possible I will just pay the £620.00 and go bankrupt. Please advise

Many thanks

Have you factored in such things as prescription charges, dentist, haircuts? Bear in mind this website is only a general one for information and not many people get to write off 90% of their debts and the amount you are proposing is very low. Don't forget as well that you also have to take account of fees to an IP company which come out of your monthly payments which lowers the dividend.

You could think of a DMP in the first instance in the hope that your cirumstances change. Stepchange are pretty good for this, also speak to one or two IVA companies and sound them out, otherwise bankruptcy could be your only option.

If your car is very low value and you can get your disposable income below £50 a month a DRO is a possibility. The fee is £90 and it is much less onerous than bankruptcy.

As for an IVA, on the face of it a payment of £170 can work, but, as Kallis says, this is a low dividend. However, low dividends do get accepted and would probably be more than the creditors would get back in BR.

You really need to have a chat with a couple of IVA providers to do a proper I&E and compare options and, indeed, compare providers.

I googled this and its say to to a DBO your debts must be under 20k, and mine are 67k?

You're not eligible for a DRO.

Foggy - I don't think the car is his, he pays for use of it.

Mon Apr 12, 2021 9:43 amP-H4 wrote:

I googled this and its say to to a DBO your debts must be under 20k, and mine are 67k?

Apologies -- yes, I should have picked up on that.

the questions is all these websites say up to 90 percent debt written off.

£200 x 60 is 15 percent of that debt. Creditors would they accept that if not I will just pay the £620 go bankrupt and they won't get a penny.

No one can say what creditors will or will not accept, and as I said, you have to factor in the fees to the IP which can add up to a tidy sum and reduces the amount the creditors get.

You need to speak to someone, preferably a small company, not one of the big factories, and see what they advise.

There are so many out there which is the best as I hear there are lots of cowboys websites offering IVA's etc.

We are not allowed to recommend anyone but I would suggest finding one who has their own IP rather than one who farms out cases to other companies. If you look around the forum you will be able to find people who recommend their companies, and others who tell you to avoid certain ones. Non experts are free to recommend, experts aren't.