IVA approval?

_Gizmo__2 · 16 May 2017 at 11:24AM

Hi,

I am currently in the process of setting up a IVA through PayPlan. I am now just waiting for the creditors meeting to be set.

I have debts of just over £19,300 and the estimated dividend for creditors is 29%. Is this likely to be accepted? My IVA payment would be £155 if accepted. There is a bit of room to increase this payment if the creditors request it.

I'm probably more anxious than I should be. PayPlan have been very helpful and it has been a quick process up until now. I have spoken to my creditors to reduce repayments/put account on hold until the IVA is set up and told them that I am going through PayPlan, so far they have been very understanding.

Fingers crossed it gets accepted, I'm just anxious in the mean time.

Thanks in advance

National_Debtline · 16 May 2017 at 3:09PM

Hi _Gizmo_

Usually creditors will expect to receive 10p for every £1 you owe them. Try not to worry, yours seems a reasonable amount. It’s good to hear the £155 per month is an affordable payment, the IVA will be legally binding so you need to be happy you can maintain payments for the full period of the IVA.

Have you been through all of your options with Payplan? If you have no assets bankruptcy could be a quicker and cheaper debt option than an IVA.

Susie
@natdebtline

_Gizmo__2 · 16 May 2017 at 5:32PM

Thank you.

I have been through the options with them. I have a car which is necessary for my job so IVA was the best option.

My creditors meeting is now scheduled for 1st June (also my birthday!). happy that the process has been so quick (around a month from when i started the process to the creditors meeting).

Johnsmith2016 · 22 May 2017 at 9:46PM

If you have no assets e.g a home then bankcrupty should be a quicker cleaner slate not liable to fail . You can keep a car up to circa £1500 value - I'd down grade the car and go bankcrupt if I didn't own a home and had nothing to protect.

Johnsmith2016 · 22 May 2017 at 9:48PM

Who have you been through your options with ? Someone impartial or someone who wants sell and Iva and make a ton of fees? They will always recommend this option to someone working over bankcrupty .
What is the current car worth exactly?

phil2580 · 30 May 2017 at 11:11AM

I do wish the myth of IVA providers making a "ton of fees" would finally die off.

It is true that back in 2006/2007, IPs could get away with charging pretty much whatever they wanted, but things have changed a lot since then, and IP margins have shrunk to the point that most cases are run at a loss, or barely break even.

Having worked for a top 10 IVA provider, I am familiar with what goes on behind the scenes, all of which has to be paid for from the fees.

Staff cost money
Telephone calls cost money
Computers and software cost money
Stationery costs money

Fees are normally structured as follows:
Nominee fee - greater of £1000 or 5x contributions
Supervisor fee - 15% of contributions after deduction of nominee fee.

So, on this example, the Nominee fee would be £1000, and the Supervisor fee £1,245.

Over a five year period, these are not excessive, nor are they costs incurred by the debtor, since the fees are paid out of the calculated contributions and agreed by creditors.

IVA approval?

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