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  • FIRST POST
    • _Gizmo_
    • By _Gizmo_ 16th May 17, 11:24 AM
    • 3Posts
    • 0Thanks
    _Gizmo_
    IVA approval?
    • #1
    • 16th May 17, 11:24 AM
    IVA approval? 16th May 17 at 11:24 AM
    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
Page 1
  • National Debtline
    • #2
    • 16th May 17, 3:09 PM
    • #2
    • 16th May 17, 3:09 PM
    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
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • _Gizmo_
    • By _Gizmo_ 16th May 17, 5:32 PM
    • 3 Posts
    • 0 Thanks
    _Gizmo_
    • #3
    • 16th May 17, 5:32 PM
    • #3
    • 16th May 17, 5:32 PM
    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
    • By Johnsmith2016 22nd May 17, 9:46 PM
    • 433 Posts
    • 224 Thanks
    Johnsmith2016
    • #4
    • 22nd May 17, 9:46 PM
    • #4
    • 22nd May 17, 9:46 PM
    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
    • By Johnsmith2016 22nd May 17, 9:48 PM
    • 433 Posts
    • 224 Thanks
    Johnsmith2016
    • #5
    • 22nd May 17, 9:48 PM
    • #5
    • 22nd May 17, 9:48 PM
    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
    • By phil2580 30th May 17, 11:11 AM
    • 39 Posts
    • 20 Thanks
    phil2580
    • #6
    • 30th May 17, 11:11 AM
    • #6
    • 30th May 17, 11:11 AM
    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.
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