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Already struggling we have had a reduction in income and need to face up to our large debt - very scary when you put everything down on paper. I didn't realise any endowment policies have to be surrended and included in an IVA.Sorry to be dim but could you explain how the for example 40p in the pound return is worked out is it the amount you would pay overall in the IVA as opposed to the original debt outstanding?

I think that for every pound that you owe them under an iva they would get 40p. If you owe them for eg £100 then they would only get forty back with an iva but to them that is better than getting for eg a 10p in bankrupcy. Hope that helps.

You are both correct. The way to work out a proposed dividend is to count up the amount of money you can pay into an IVA over a 60 month period, make a deduction for costs (you will need to confirm these with your IP) and then divide the balance equally between your total creditors. The percentage represents the amount of their debts the creditors can expect to recoup.

Hope this helps.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Hi
Thanks for your answers I am new to all this but have found this forum very helpful - nice to know we are not alone just want to sort something out so can have some peace of mind our debts are all I can think about