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Posted: Mon Feb 25, 2008 2:24 pm
by markss
If my iva was rejected on a debt of £80,000 with disposable income of around £200 how much would i have to pay if i went br? no assetts etc at all
Posted: Mon Feb 25, 2008 2:27 pm
by chris.g
BR fees are £485, on disposable income of £200, £100 IPA approx, of course it depends on Official Receivers decision.
Posted: Mon Feb 25, 2008 9:21 pm
by carlmcmullen
Chris is correct.
£200 is very low for an £80,000 debt - i estimate about 10p in the £.
Is there a payment change within the IVA or any equity that you are releasing ?
I think it is more of an unwritten rule but the OR would work out your I&E and then take half of your disposable income normally.
Posted: Mon Feb 25, 2008 9:38 pm
by markss
the iva is at initial stages ie draft stage they will propose £270 to creditors. they seem confident as i have no property etc and br would give creditors even less.
Posted: Mon Feb 25, 2008 9:43 pm
by carlmcmullen
You are looking at a dividend of inbetween 15 - 18p in £ after costs.
Although this is not a high dividend it does depend on your creditors and your IP would not be proposing the IVA if they did not consider it to have a real prospect of being approved.
Good luck and keep us posted
Posted: Mon Feb 25, 2008 9:47 pm
by emma_t
Hi markss
You state you have a disposible income of £200 per month and then said in a later post that you are proposing £270 per month in the iva.
Is this affordable for you?
Emma
Posted: Mon Feb 25, 2008 9:48 pm
by markss
its through DFD they think its best return for creditors but.. NR hold 25% so may be rejected
Posted: Mon Feb 25, 2008 9:52 pm
by markss
the figure is £270 sorry was just a random amount before for feedback sorry emma
Posted: Mon Feb 25, 2008 10:25 pm
by emma_t
My advice to anyone seeking an iva is to make sure that the figures are 100% correct and the payments are affordable and not 'inflated' to gain acceptance.
Markss good luck with your proposal and I hope things go well for you
Emmax
Posted: Mon Feb 25, 2008 10:27 pm
by carlmcmullen
Good advice emma
Last thing you should do is enter an IVA if you do not feel it is right for you.
Good luck
Posted: Tue Feb 26, 2008 9:32 am
by MelanieGiles
Northern Rock do not operate a hurdle rate - and if 15-18p in the £ is the best you can offer there should be no reason why your IVA should be rejected - although creditors will weigh up the benefits of receiving such a low return over an extended repayment period against an immediate sale or write off of the debt. A DMP would not really be appropriate for you, given the length of time it would take to repay the debts, so really the choice for your creditors would be 15-18p under the IVA or no return in bankruptcy.