why do they take less then what i owe?

[gavin]

i looking 4 an iva how dos it work? why do they take les then what i o? me and my wife o 65k and we pay out 850 on rent and have 2000 comeing in

[hara]

If a debtor is insolvent, that is that he or she can not maintain payments and the things are going to get worse then the creditors see get less in a pound is better than almost none at all if the debtor goes bankrupt.

For IVA to be proposed one should be able to at least 25 p in the pound and if one owns a property there usually is clause of 4th year property valuation and remortgage.

any windafll may have to be handed over.

In the end creditors may get more than what is propsed in the original proposal.

Hara.

[gavin]

thanks are all iva companes the same and what if the crediters say no to the iva[?]

[aguise]

Hi Gavin you basically pay what you can afford for the five years, your disposable income, that is what you have left after reasonable expenditure, what you need to live on, so if you owe 40,000 and over the five years you pay into the iva 20,000 then the rest is written off, and you will have paid back 50p in the pound, and your debts are gone. There is a lot more to it so ,make sure you understand fully what an iva is , it may not be the best solution for you. If you want to post more of your situation, like debt amount, amount of creditors, what is left after the normal living that is not including the debts, then others will all advise.

Ang

[hara]

NO they are not same, but you have shop around and seek an reputable IP. A properly prepared proposal is unlikely to be refused,if refused a debt management programme or bankruptacy may be alternatives.
That why it is important choose a reputable IP in the first place.

hara.
That is why you must choose your IP properly

[MelanieGiles]

Hi Gavin

Have a look at my blog for tips on choosing an insolvency practitioner.

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

[gavin]

thanks i think i going to use kinggate dos any 1 no if ther good [?]

[hara]

Never heard of them,

Why not ask MLanie Giles who is an IP or try grant thornton or you can ask your CAB to recommend one.

Whatever you do you must get it almost 100 percent right in choosing your IP as you must get the things moving smoothly,at a steady pace,should able to contact some one promptly for advice and help .

What is important to remember is that your IVA lasts for 5 years,once it goes through.

REMEMBER GET CHOOSING YOUR IP RIGHT.

hara