not yet in an iva but considering this as an option. have four credit cards, one next account, 2 small personal loans with first direct and an overdraft with them . Would first direct count as one creditor or 3? Am aware of the rulign of 75% of creditors need to be in favour.
Also all payments up to date- no arrears( struggle)- min payments on c cards thought. For month or so that IVA being arranged would I make reduced payemnts otherwise what's in it for them?
Also have a son living at home doing degree- how would this factor in my budget- I support him as he can't support himself every month on student loans. Can see where children fit in. Would I just list this as an expense as part of my budget?
Hi Tigs and welcome to the Forum.
First Direct count as one creditor but you do have others and sufficient lines of credit to satisfy the requirements for an IVA. First Direct do support IVAs so their percentage should not in itself be a problem.
While your IVA is being prepared you can make token payments or you could clear priority arrears if this is applicable. Alternatively some clients use the money to have a small contingency fund for post IVA or to have a service carried out on their vehicles. It is not hugely important and normally the money is needed while you switch bank accounts. This you should do regardless of what you decide as it would be easier to get an account now with a good credit scoring rather than after your IVA is approved.
Your son's living costs are factored in but when he leaves university and finds work he would be expected to contribute to the household expenses[if he stays] and this could lead to increased payments at this time.
Contact an IP firm for some free advice and answers to any other questions you may have.
As Michaels says contacting some IP firms to discuss your situation in more detail is the best thing you can do once you feel you have enough information here to move forward. (Some people like to use the forum to boost their confidence first as it can be a scary thing to do!)
You will have all the options explained to you and you will be able to discuss fully your circumstances so that the right budget is calculated in order to work out your disposable income. This is the most important part to ensure all things have been taken into account. You will then be able to see what is the best choice for you.
Of course, in the meantime, ask as many questions here as you like!
Regards,
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
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Hi
Just to clarify that for a successful IVA application you need agreement from creditors who hold at least 75% of the total value of debt that is owed to all creditors voting on the day.
As Andy says above if one creditor you owe 25k to and another 5k it won't be 50/50 vote it will be Majority vote to the first cause you owe them more. It's how TIX has managed to get majority vote on most IVA's because they represent a LOT of creditors getting them majority vote and allowing them to DICTATE harsher conditions than neccessary because their line of business is getting more money back for the creditors which the creditors in turn pay them for.
I am not bitter, honest (A) **sweet and angelic face**
