New with IVA

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ralffik85
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by ralffik85 » Thu Nov 30, 2017 2:47 pm
Hi

At the beginning I wanna apologize for asking questions that probably been answerwd here thousand times.

I am about to start my IVA adventure, and have lots of questions.

First and most important when I should stop paying to all my creditors. At what stage of IVA process.

My debt is around 16500£. I spoke with lady from money advisor, she took all details regarding income and outgoings. She estimated that my monthly payment would be 254£/pcm. That is based on my basic hours wage. What happen if at the end of the tax year my income will be higher that should be due to overtimes I am asked to do in busy times. Will that affect my monthly payment? It worries me because it is imposible to predicts when and how busy it gonna be.

Another thing is how much I can put aside. Let's say miracle will happen and over some period of time i will be able to save up little bit for all kind of emergencies.
How my creditors will look at this, how likely is that they will want it to cover my debt?

I will be more than grateful for any answers.
Best regards
Rafal

Ps. Sorry for my broken english :)
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kallis3
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by kallis3 » Thu Nov 30, 2017 2:59 pm
Firstly, never apologise to us!

Once you have started down the IVA route you can stop paying creditors but I advise going into any online accounts and removing contact details. Have you opened a new bank account with a non creditor?

I also advise speaking to one or two companies before making a decision. Your payments will be decided by your expenditure and income. Your adviser cannot make comments about your payments over the phone.
ralffik85
Posts: 4
by ralffik85 » Thu Nov 30, 2017 3:18 pm
Thank You.

Yes I did open account in new bank, now have to wait up to 10 days for new card and all details so I can move my wage there
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Lisa Thomas
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by Lisa Thomas » Thu Nov 30, 2017 3:26 pm
ralffik85 wrote:
Hi

At the beginning I wanna apologize for asking questions that probably been answerwd here thousand times.

I am about to start my IVA adventure, and have lots of questions.

First and most important when I should stop paying to all my creditors. At what stage of IVA process.

My debt is around 16500£. I spoke with lady from money advisor, she took all details regarding income and outgoings. She estimated that my monthly payment would be 254£/pcm. That is based on my basic hours wage. What happen if at the end of the tax year my income will be higher that should be due to overtimes I am asked to do in busy times. Will that affect my monthly payment? It worries me because it is imposible to predicts when and how busy it gonna be.

Another thing is how much I can put aside. Let's say miracle will happen and over some period of time i will be able to save up little bit for all kind of emergencies.
How my creditors will look at this, how likely is that they will want it to cover my debt?

I will be more than grateful for any answers.
Best regards
Rafal

Ps. Sorry for my broken english :)


You are of course welcome to use this forum for advice but I would think Aperture should be able to help you with these queries. If you are having trouble getting advice from them at this early stage it does not look good for the future.
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kallis3
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by kallis3 » Thu Nov 30, 2017 3:30 pm
I don't think he mentioned Aperture unless I am missing something?
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Foggy
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by Foggy » Thu Nov 30, 2017 3:55 pm
Regarding payments: The regular paymebt is based on your basic wage. If you earn overtime, this is usually split between you and the IVA -- you get roughly half -- maybe a little more depending on which clause they use, and the rest is paid into the IVA when you get it. You are allowed to make savings from your share of overtime and some of the allowances you have to save anyway -- For instance you get, say, £10 a month towards glasses (if you wear them). This £10 has to be saved until you have enough for the glasses.
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Keith White
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by Keith White » Thu Nov 30, 2017 4:04 pm
Hi Rafal, good luck with the IVA. £245/mth does seem quite high given the level of debt especially if you may be adding overtime monies. It might well be worth getting another quote or 2. Its important that you have enough to live on during the IVA.
On overtime, the usual equation is that whe you do receive overtime, overtime that amounts to 10% of your normal bring home pay is yours to keep. Then half of any extra has to be made available to the IVA. So if someone earned £1500/mth - overtime of £150 would not need to be declared but if overtime were say £300, ie the bring home pay was £1800, then the first £150 is protected but half the rest would be available to the IVA ie £75.
On savings - some reasonable savings are to be encouraged to cover bills, outgoings that are not necessarily regular eg car service, dentist - but obviously if the savings are too large, creditors may feel you can afford a higher repayment level in the IVA.
I'd be very willing to help with further information.
PS - your English is very good!
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Lisa Thomas
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by Lisa Thomas » Thu Nov 30, 2017 4:27 pm
kallis3 wrote:
I don't think he mentioned Aperture unless I am missing something?


Oh dear, my mistake - I meant Money Advisor

Apologies for any confusion.
ralffik85
Posts: 4
by ralffik85 » Thu Dec 07, 2017 9:38 am
Thank You for all your answers. I got one more question. It is about overtimes/extra income. So all calculations regarding IVA are based on monthly income and outgoings, only problem is that I am paid weekly. My average basic weekly hometake is around 372£ rhat gives around 1612£/pcm (372£ × 52wk / 12 ). How I should report any extra income to my IP (or how he is called). I don't want to find out after my first annualy reviev that I paid not enouh and my monthly payment will go up a lot.

Many thanks.
Rafal
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Foggy
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by Foggy » Thu Dec 07, 2017 9:43 am
Discuss this with your IP and agree a formula -- some have different ways of handling weekly paid. Get whatever you agree in writing to avoid any confusion later on.
ralffik85
Posts: 4
by ralffik85 » Thu Dec 07, 2017 9:49 am
Foggy wrote:
Discuss this with your IP and agree a formula -- some have different ways of handling weekly paid. Get whatever you agree in writing to avoid any confusion later on.

Thank You
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