www.iva.co.uk

i have credit card debts of 35300 . i have been able to make payments by borrowing off other credit cards but for the last 3 months have been able to do extra hours and by borrowing off my parents . this is about to stop. i am 63 , have a regular job but it is for 10 months a year and i have a company pension .pension and work after deduction are approx 1250 a month .expenses are about 900 a month . would i be able to qualify for an iva .

Hi Clasher and welcome to the forum,

others will be able to give you a better answer , first thoughts are about retirement .. IVA's run for about 5 years ..

Slainge
Mish

hi clasher welcome to the forum i have been in a iva for 12 months and i have just started my second year as mish says it lasts 5 years then you are debt free if you have things like sky or virgin media and a telephone line and internet or a mobile you can have them but when you go into the iva you wont get things like sky or virgin media as lenders have to do a credit check on you and it will be turned down all the time until you have completed your iva the iva will show up on your credit file for 6 years

JOHN

Hi Clasher
There is no age restriction on an IVA but as otheres have said your creditors may question your ability to pay for the full five years.
However an IVA can be proposed to take into account your circumstances so it may be that you can make full payments for several years followed by reduced ones if you do retire.
Speak with an IP as there will be a way forward for you.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

A DMP prior to an IVA has no advantage.

If your employer has a policy that employees can continue to work past retirement age, then an IVA is possible, but I think that you have to be realistic. Do you have a property or other assets which would be affected by bankruptcy proceedings? If not, then I would think that bankruptcy proceedings are probably more appropriate for you.

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

thanks for the reply. i do not own any property or have any assets of notable value. bankruptcy is not an option . my employer would be more than happy for me to work for as long as possible . if i did retire my company pension will be about 9500 an according to estimates of my state pension will be about 5500 .with extra tax allowance at 65 my net income ought not to be much less than i get now .

Clasher

You have to explain why bankruptcy is not an option, and to do that you need to do a bit of research.The blogs on this site are excellent at explaining how bankruptcy affects one personally and the Insolvency Service is a mine of information.

http://www.insolvency.gov.uk/

Establishing why you don't want to be made bankrupt is the first stage in you establishing what your motivations are and what arguments can be put to your creditors that an IVA is the better route for both parties.

When you've done your research come back and explain why bankruptcy isn;t an option and we can take you to the next stage.

the only reason why i do not wish to go bankrupt is that my parents are both 90 and i do not want them to know of my problems as this would spoil what years they have left to live

Is it likely that they would find out? Whilst bankruptcy proceedings are publicly advertised, the actual advert is quite small, and unless your parents are avid readers of the legal notices section in the local paper, they are unlikely to be made aware of your situation.

However, if you really have decided that bankruptcy is not for you, you do have the right to put an IVA together, as there is no age limit, but do be sure that you can sustain payments for a five year period, especially if you have plans to retire during that time. I have quite a few older clients, and they are very happy to continue working and paying their IVA contributions.

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

thanks again for reply. i am still considering a iva . whilst i realise all iva payments are different is it possible to give me an approx. amount in the pound that i would be expected to pay on my debt of 35300 . thanks

The general principal is that you pay as much as you can afford.

A number of banks have minimum thresholds below which they will not accept an IVA, and accepted wisdom is that a minimum dividend of 25% would be required, rising to 40%+, depending on who are your creditors.

Remember that this return is after the costs of the IVA for which you need to budget somewhere between £5k and £8k depending on which IP you go to.

thanks for the imformation. assume that i repaid 50% of 35300 , ie 17650 , would i then have also to pay fees of 5000 to 8000. just when i read imfomation on the payplan website it states " no monthly fees and no set up costs .

I'm not sure what Payplan do with their IVA's but I'm pretty sure that they do charge for IVA's but not debt management plans.I think that is what the reference to no fees refers to.

hello , i have been through all my income and expenditure several times and it leaves 375 spare a month . over 5 years repayments of 22500 which is about 63% of my debts , less say 7000 costs makes repayments of about 44p in the pound. i am able to work past retirement age and will do so . on top of my company pension and wage i will also get my state pension which i have not taken into account with these figures . from what i have ben reading it does seem as though ivas are harder to be accepted , but with this amount available and still working i think that i will try . any thoughts

It looks like you have the makings of a good IVA there Clasher, and if you are going to instruct Payplan I can assure you that they do charge IVA fees.

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