£45k debt and am think of an Iva because the interest is killing me

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Adam_7985
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by Adam_7985 » Sun Jun 11, 2017 7:35 pm
Hi, I have about £45k debt and am think of an Iva because the interest is killing me, I probably pay about £1200 a month, if I was to offer £750 which is the full amount I owe over 5 years, do you think this will be accepted?
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Foggy
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by Foggy » Sun Jun 11, 2017 7:39 pm
Hi Adam -- you don't make offers --- the payment is determined by your IP and is, basically, your disposable income ( after agreed expenses have been taken out). You would, to pay 100% of the debt, also have to cover fees and possible statutory interest.
Adam_7985
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by Adam_7985 » Sun Jun 11, 2017 7:48 pm
Ah I see, thanks for the quick response, I'm just trying to determine how much we would be left with a month to live on, I see Iva calculators online that say my payment would be just £350, that can't be right if they say I have to stick to a strict budget surely?
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Foggy
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by Foggy » Sun Jun 11, 2017 8:23 pm
Adam_7985 wrote:
Ah I see, thanks for the quick response, I'm just trying to determine how much we would be left with a month to live on, I see Iva calculators online that say my payment would be just £350, that can't be right if they say I have to stick to a strict budget surely?


I found my "strict budget" left me with more than I had when all the money used to go on debts ! Don't forget you have to account for everything you HAVE to pay out -- as well as the obvious, there are haircuts, lunches at work, insurances, etc.
Adam_7985
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by Adam_7985 » Sun Jun 11, 2017 8:32 pm
Very true, thanks again
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kallis3
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by kallis3 » Sun Jun 11, 2017 8:35 pm
Agree with Foggy - your IP company will sort out your payments
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Michael Peoples
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by Michael Peoples » Mon Jun 12, 2017 8:46 am
Affordability is the most important part of an IVA and there are guideline figures. Some of these figures are quite silly but if everything is listed and you can afford the payments then it is not our business how you spend your own money.

Speak to an insolvency firm and do an I&E to see what you would be expected to pay.
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Lisa Thomas
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by Lisa Thomas » Mon Jun 12, 2017 9:00 am
Also, consider that an IVA might not be the most suitable procedure for you.

Have a look here for some basic ideas:

https://www.youtube.com/watch?v=TgalT1vhn6M

Bankruptcy may be more suitable depending on your circumstances/assets etc.

https://www.youtube.com/watch?v=mAkQsVS ... SY&index=2

IVA video here:

https://www.youtube.com/watch?v=zrQruCD ... SY&index=3
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Andy.75
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by Andy.75 » Mon Jun 12, 2017 10:13 pm
Just read this post and it was simular to my amount. I owed 43k and was paying out 1200 per month in various debts. A monthly payment of 433 was set up and was the best thing i ever did. It was 7 yrs ago. Now im debt free with a healthy bank balance. Have a new car and holiday twice a year and also changed my mortgage deal without any probs. Will never ever live beyond my means ever again. The monthly payment agreed all depends on your income and how much you pay out (expenditure) on day to day things. I was allowed an allowance for mobile phone contracts, sky tv, hair cuts for the family, all car running costs, food, school dinners trips and uniforms, all utilities, work meals, even newspapers. They had a pre written list of all these items so nothing was forgotten
Adam_7985
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by Adam_7985 » Mon Jun 12, 2017 11:02 pm
Hi Andy thanks for the reply, if I got a repayment plan of between £450-£650 I would be happy with that and would mean I pay back the majority of the money I owe, I am doing a few i&e's tomorrow with various companies, so hopefully we can get some proper figures
Adam_7985
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by Adam_7985 » Mon Jun 12, 2017 11:03 pm
Sorry Andy can I ask out of interest which company you used?
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Michael Peoples
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by Michael Peoples » Tue Jun 13, 2017 8:11 am
Most companies should arrive at a similar figure as the guidelines are there to be used. However, as fees are determined by the amount of the monthly contributions, it is tempting for some firms to ignore some items and thus increase your payment. If you want a list of the current expenditure guidelines please feel free to drop me an email and I will forward a copy to you.
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Andy.75
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by Andy.75 » Tue Jun 13, 2017 6:21 pm
I was originally with a company called Blair Endesby. After a year or so it changed to Grant Thornton. Then couple yrs later changed to Aperture. Its still called Aperture now. I didnt have any probs with them. Also my monthly payment remained the same throughout the duration of the Iva. Even though i had an annual payrise, i just offset the extra money against higher fuel and household bills
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