www.iva.co.uk

Hello All
I am nearly ready to start an IVA through Thoams Charles who have been great talking me through the figures and working out what would be best to put. However I just have one question for the forum. How do I work out how the problem of how many pence in the £ I am paying. Is their a formula or sum to do this?
Thanks
Adam

Hi adam

It really depends upon the level of your contributions, less the IP fees (which can differ from firm to firm), leaving a balance which is then divided equally amongst your creditors.

For example - IVA payments of £600 per month would equal £36,000 - if IP fees and costs were a total £8,000, then this would leave £28,000 to divide amongst creditors. If you owed £50,000, then this would produce a return of 56P in the £.

Hope this makes sense.

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

Hi
I would advise anyone reading this forum to allow £10k for IP fees as a general guidline.
Times your monthly payment[disposible income]by 60 and take off £10k.
The amount left is the amount divided between your creditors.
Eg £400 month x 60 =£24k,less IP fees £10k =£14k to your creditors.
Divide the 14k into your total debt[say 56k]as a percentage = 25%
So you will return 25p to your creditors for every £1 that you owe them
Regards