IVA's

c53204

My Debts (total for a married couple) are approximately (still working them out). £50,000.

Last Friday the comany I worked for folded. I'm mot expecting my monthly salary of £1600 to go in to my bank account.

With both our salaries we can only just pay our bills/creditors.

I'm looking toward an IVA (didn't know they existed until today!

My question is how do the companies that provide this solution 'make their money' - I sure they are not in it because they feel sorry for people!

Thanks

Clive

Reaper

I can't answer your question on IVAs, but if your employer is unable to pay what it owes then you can claim the money from the National Insurance fund. There are caps on it but even so you should get most of what you are owed.

This is your chance to benefit from all those National Insurance contributions that got deducted from your salary.

The only thing that annoyed me when I got the money was that they deduct tax and yes, national insurance from it!

Debt_Free_Chick

I'm looking toward an IVA (didn't know they existed until today!

My question is how do the companies that provide this solution 'make their money' - I sure they are not in it because they feel sorry for people!

Thanks

Clive

Hi Clive

They charge you a fee. Many of them charge you a fee simply to introduce you to an insolvency practitioner.

Don't do this. Please visit this website - it has full information about all your options, including an IVA. It explains an IVA, the process, how much it costs.

Consider calling them too - they will help, for free, as they're a charity to help people just like you. Don't close your mind to other options just yet. You didn't know about an IVA and there may be things about other options you don't know yet

https://www.nationaldebtline.co.uk

You need to take a hard look at your household expenses and start to cut back wherever you can. You may need to ditch some expenses - and you should if they are not absolutely essential. This will give you a little breathing space.

Post back with any other questions.

Good luck

ker_3

contact the CCCS they put my boyfriend in touch with a company called grant thornton who deal with ivas the charge is put onto what you owe in total debts so spread out over the 5 years, thats what happened to him anyway.

Xandar

Hi there,

I've dug deep on IVA's since it is the number one options for me at the moment with £25K unsecured debt.

The IP's make their money because they take a management fee.

What happens is this:

you see your IP and go through all your debts. You MUST be able to afford at LEAST £250 per month, and IVA's are not considered suitable unless you've got 20-25k worth of debt (some sites say 15K)

I saw an IP about this and basically, the creditors get a BIT of your monthly payment, the IP takes the rest as 'supervisory and management' costs, because they monitor you for the duration of the IVA.

The rest is all available on the debt advice site already put up.

But believe me, they make plenty money on an IVA

100mel

I've just completed an IVA - initially it was for 5 years but creditors agreed a deal after 4. You need not worry about insolvency practitioners - any proposal to creditors is always before Ip costs - they make minimum 5k upwards and it is easy money for them following the creditors meeting. Do NOT enter an IVA using a company. IP's are regulated and you can approach them independently. I would suggest contacting several - ring several accountancy firms and ask if they have an insolvency partner and go see them with your situation. An IVA can be done on a one off basis, over three years, 5 years - it really depends on who your creditors are and how many of them. From bitter personal experience you must find an IP with whom you can work and with whom you at least feel vaguely comfortable - you need to know their track record with IVAs and what dividend proposal they agreed. It is not an easy option but sometimes the only one.

homerj_3

I have an IVA, and it is down to the Insolvency Practioner to get the best deal he can. The guy who says you must be able to afford £250 is wrong, becasue I have an IVA for £76 000 (due to the loss of a business and unsecured loans and gurantees signed by myself) and i only pay £100 a month.
Simply the IP needs to get 75% agreement between your credtiors about the repayment plan, as they would like to get as much as they can back obviously. But you can get them down to around 20p in the £, they will be playing hardball, you need to too.
If you can realise a lump sum from the equity in your house, this too helps reduce the monthly burden.
And finally you do not need to run the full term, again if you can realise some equity in your house, or manage to save or have some windfall of cash 3 years into the IVA, try and get it paid off, as they will accept a full and final payment just to clear the file on another persons desk.
Good luck