Estimated iva payment hike after job promotion

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charmane
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by charmane » Wed Jun 07, 2017 8:22 pm
Hi I am currently 17 months into an IVA and things have been plain sailing so far, i just have a couple of enquiries to be honest, my first one is how much roughly do you think would be good to offer as a buy out early fee, my debt was £8000 roughly and I currently pay £80 a month and was just wondering if there was a figure you would say would be reasonable.

My second query is that I might be being promoted later on in the year and my wage would increase by an extra £300 per month at the minute I make ends meet but obviously an extra £300 would be helpful, obviously I know the iva company are going to ask for a higher payment, do you think you could give me a rough estimate to what my payments might be with this increase roughly?

Thanks in advance
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Foggy
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by Foggy » Thu Jun 08, 2017 7:09 am
Hi -- on the wage rise fron the IVA will want 50% of the increase, assuming no extra expenses --- so your 80 a month will rise to 230 on a 300 increase.

Now -- as for F&F -- this is based on number of payments left multiplied by your monthly amount --- so better to get this done before your IP gets a whiff of a pay rise.

Currently you have around 43 payments left ( currently at 80) -- so around £3440 to pay in. If you own your home there might be an additional 12 months to add on)

But, assuming you rent and get this in early, you would be looking at an offer in the region of £3000. You could try going lower, but, at £80 per month the creditors are actually getting very little as it is. Be prepared to up the offer to the three and a half though.
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Lisa Thomas
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by Lisa Thomas » Thu Jun 08, 2017 8:16 am
The increase usually applies over the first 10% of extra monies. The net balance is then split 50:50.

If your contributions increase, using Foggy's figures, to say £230, your future payments will be c£9,890 so this is what you would base your offer on.

https://www.youtube.com/edit?o=U&video_id=h4dozq9aGak
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