How much does an IVA cost and how do you pay the costs?

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victoria676
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by victoria676 » Mon Sep 25, 2017 5:22 am
Hi

I'm seriously considering doing an IVA. Can you give me a little info regarding the process? How do you start, do you go though a budget, do you have to supply your bank statements, do you have to live frugally (no cheaply holiday, no clothes at all etc)? Obviously I don't won't be spending loads. How much does an IVA cost and how do you pay the costs?

Sorry about all the questions.

Thank you.
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Foggy
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by Foggy » Mon Sep 25, 2017 7:02 am
Hi -- the links down the left hand side of the page will give you the information you need.

To get started you need to speak to a couple of providers. They will go through all of your financial circumstances and you will arrive at a budget. In a nutshell, they take your income and, out of that make allowances for essential spending (rent, car, utilities, shopping, clothes etc). What is left is your IVA payment. There is no leeway for holidays (most of us take to camping!) or luxuries and life can be frugal --- but, to be honest, I had more to spend than when I was giving it all to the credit card companies !!

Fees are agreed with the creditors and will come out of your regular monthly payments.
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Michael Peoples
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by Michael Peoples » Mon Sep 25, 2017 9:40 am
Affordability is key in an IVA but ultimately it is up to you how you spend your own money. Some people make savings in areas which then allows for a holiday and in addition you retain more than half of any overtime, bonuses or commission which you can spend as you see fit. Have a word with an insolvency firm and go through an income and expenditure to see what you would be expected to pay and whether this would be affordable.
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Lisa Thomas
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by Lisa Thomas » Mon Sep 25, 2017 1:46 pm
The costs are approved by creditors and paid from the assets in the IVA (normally your contributions from your income) so effectively paid for out of the creditors pockets.

Costs will vary from firm to firm.

Shop around - best to try and meet one face to face in your local area. some of the big factory firms get stick on this forum. Have a read of the feedback.
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SteveUK
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by SteveUK » Mon Sep 25, 2017 3:43 pm
Foggy wrote:
There is no leeway for holidays (most of us take to camping!) or luxuries and life can be frugal --- but, to be honest, I had more to spend than when I was giving it all to the credit card companies !!



I thought I was going mad when we first started our IVAs. We were getting paid every month and after paying all the bills we didn't have enough left to last the rest of the month. The only way we could eat was by not paying someone or by getting payday loans which made the problem worse. As soon as the IVAs started we actually had money for food after paying bills and there was an end in sight, albeit a long way away. No need to dread the arrival of the postman or the phone ringing.

Now my wife's has finished (5yrs) and mine has a year to run (6yrs). Our payment has dropped by £400 pm and next month we are having a week away. Don't get me wrong, we have had holidays but always staying with my parents in Spain, with cheapo flights courtesy of Ryanair.

We are planning a special holiday after my IVA finishes next September
8)
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