Who to go with 4 IVA cccs or payplan?

purple-pear

Plus can anyone recomend any other COMPANIES other than thses two then that dont charge and are considered trustworthy in terms of IVA's in general? Anyone?

MIVAA

Hi purple-bear,

It is difficult to be able to comment without having available all the necessary details, but on the face of it you would not be able to get an IVA agreed for just £150 per month.

Chances are it would need to be substantially higher than £150, though I couldn't say how much without all your details.

Normally your creditors would expect you to contribute a minimum repayment of approx £290 per month.

This is the average contribution over the term of the IVA so as Dr Hook suggested, you could begin your IVA with a smaller contribution of say £150 per month at first, but you would need to have evidence to support your capability of increasing the IVA contributions later on, to a high enough monthly contribution to maintain the average over the full term of th IVA.

I know this may be beyond you, but I think you should understand, it is what your creditors will demand, and that's what it is all about I'm afraid.

I hope this helps

MIVAA

Dr_Hook

purple-pear wrote: »

Thats why I am asking what is acceptable as a payment? I have been told £150 per month is enough so if that is the case I would be ok with this or even more what I wanted advice on is how thy work this out?

Your monthly contribution will be derived from an analysis of your income and expenditure. If the outcome is that you have a surplus sufficient for an IVA to be viable, then this is potentially an appropriate solution. If your surplus means that an IVA is not likely to be acceptable to creditors, then it is not the solution for you. It is no good cutting corners in your expenditure to make an IVA viable - you will only regret it in the long run when your IVA fails because you cannot maintain contributions.

You need to find a solution that works for you, not the other way around.

Good luck!

MIVAA

Sorry, I don't think I made it very clear above...

The reason you would be expected to pay as much as £290 is because of the amount you owe.

£39,000 would need a minimum average repayment of approx £290 pm

Anything below this level would not meet your creditors minimum requirements on the face of it.

I hope that's a little more clear now.

MIVAA

North_East_Derbyshire_CAB

Hi all,

Interesting thread.

An Individual Voluntary Arrangement (IVA) can be an option for dealing with your debts and be a genuine method of avoiding bankruptcy.

Regrettably, NEDCAB continue to take enquiries with regards to problems with IVAs and are currently dealing with a fair number of cases.

Our advice regarding IVAs would be that you should always get genuine independent, impartial advice on all your options before making a decision.

If you do eventually decide on an IVA as a method of dealing with your debts, our advice would be that you should consult several insolvency practitioners, first asking what they charge (some don't charge up front fees) before asking any of them to act for you. Insolvency practitioners are usually accountants, some are solicitors and their fees are similar to those charged by members of these professions for other kinds of work. We believe that IVAs can be difficult and complex procedures that need expert handling with considerable face to face discussion between the debtor and a fully qualified insolvency practitioner. We do not believe that an IVA is something that can be dealt with solely via a telephone conversation and would advise clients to take this into account when choosing an insolvency practitioner.

Anyone considering an IVA may wish to read this report by the Derbyshire CABx before making up their minds:

http://www.ned-cab.org.uk/debtselfhelp/documents/IVA%20Report.pdf

We would welcome any comments or feedback on the above report and hope it can be of some assistance.

This will be our last post until the new year so wishing everyone the best for xmas and the new year.

Yours sincerely
All at NEDCAB

Dr_Hook

MIVAA wrote: »

Sorry, I don't think I made it very clear above...

The reason you would be expected to pay as much as £290 is because of the amount you owe.

£39,000 would need a minimum average repayment of approx £290 pm

Anything below this level would not meet your creditors minimum requirements on the face of it.

I hope that's a little more clear now.

MIVAA

Hi MIVAA - I wasn't meaning to contradict you or dispute your post: £290 sounds about right (In fact, assuming fees are capped at 40% of realisations, you could go as low as £270 for a circa 25p/£ dividend).

I was just worried that the OP would try to adapt their I&E to get to this figure, rather than be honest & realistic about what they earn & spend.

MIVAA

Hi Dr Hook,

No offence taken.

I was just worried that the OP would try to adapt their I&E to get to this figure, rather than be honest & realistic about what they earn & spend.

This is always a worry of mine too.

Our helpline deals with hundreds of calls from people who need help with their IVA's for all types of reasons, but a large proportion of them are quite simply unable to afford the payments they originally put forward.

Sometimes, a debtor's desire to qualify for an IVA, and therefore benefit from some debt forgiveness, clouds their judgement as to what can be afforded over the long term, and as you know, this is the crucial element of an IVA.

For a person's circumstances to be suitable for an IVA they should be able to maintain an affordable repayment for a predetermined fixed term - without it being at the cost of their essential living expenses.

Life does have a habit of throwing a spanner in the works periodically, and it will be almost impossible to protect against large changes in circumstances, but this is not what we are talking about here.

Like Dr Hook says, we are talking about the importance of 'a debtor' being honest and realistic with themselves, and being guided by an IVA professional who understands the significance of getting this right.

Too many IVA advisers out there do not employ proper safeguards and reality checks to minimise the chances of this from happening IMHO.

It's good to see you're conscientious over this too, Dr Hook.

Thanks

MIVAA

Dr_Hook

Nicely put MIVAA.

Merry Christmas! :santa2: