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Posted: **Tue Mar 13, 2007 9:00 am**

I am looking at the possibility of entering into an IVA snd have had some varying advice.
Accuma said 'Go bankrupt' and others have suggested that a monthly payment of around £360-400 is starting place for my situation...however The Debt Advisor (compass finance) have proposed a reduced monthly payment for the first 12 months of my IVA as I have an HP on a car with a year to go and once its paid I can then use the car funds for the IVA pot.
Does this sound like reasonable advice to anyone??
Can they do this with an IVA agreement??

Posted: **Tue Mar 13, 2007 9:36 am**

Hi
Yes I have seen sevral posts where people are still paying their car and when finished it goes onto the iva, as this is more disposable income.

Ang

Posted: **Tue Mar 13, 2007 10:20 am**

I have someone coming today who have advised £160 for first year then £350 for the following 3 years. At the 4th year we look and see what equity there is in property...if none continue to repay £360 for a further year..dies this sound right??? what sort of equity value would they take??

Posted: **Tue Mar 13, 2007 9:40 pm**

s_m
The advice regarding the HP is correct.
Can you post further details regarding your total debts and disposible income ?
Regards

Posted: **Tue Mar 13, 2007 9:47 pm**

steven.m
Your equity release in year 4 is normal,it is likely that you will have equity and at present you will have to release as much as you can[normally 80-85% of your house value less your existing mortgage].If you cannot remortgage due to lack of equity then your IVA should conclude at the end of year 5 as stated.If you have equity but cannot remortgage due to affordability then it is normal to extend your IVA for approx a year to compensate for this.
regards

Posted: **Tue Mar 13, 2007 10:18 pm**

Hi steven

Do be aware that an IVA is only one option available to you, and you should take specific advice as to the benefits and disadvantages of all options before you decide on the way forward.

A good insolvency practitioner will explain all options to you, leaving you to make the decision as to what is best for you and your creditors. If you do decide that an IVA is favourable, the introduction of saved HP monies and an equity release will enable your creditors to receive a higher return.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk