Fast-track IVA ??

bissous

Who knows more?

I remember having read that it is a 'one-year IVA' not stretching the regular 5 years yet only accessible to undischarged bankrupts. Not sure if I remember this correctly. I believe the bankruptcy will be revoked if a fast-track IVA is offered and agreed upon by 75% of the creditors.

What bothers me (BR since 5 January 2009) is that the OR will monitor my income for 3 long years and deduct any 'disposable income' to pay my creditors.

Now would a fast-track IVA offer a solution only for people with a well-paid job, say £50K+ before tax ?? Or does the IVA also work for those with a smaller income?

Any information on fast-track IVAs would be helpful.

peachyprice

You may well have to pay back far more to your creditors in a FTIVA than an 3yr IPA based on your 70% of your disposable income after all living expenses have been taken into account. A FTIVA doesn't necessarily last just 1 year, there is no set time it will last for however long it takes to pay your creditors a reasonable return, so may well be longer than the 3 year IPA.

info from IS is here

http://www.insolvency.gov.uk/guidanceleaflets/ftva/ftva.htm

fiveyearplan

Even if you do have to pay a hefty IPA, how much debt did you dispose of in your bankruptcy?

bissous

Thanks for the info.

Quote from http://www.insolvency.gov.uk/guidanc.../ftva/ftva.htm :

"The official receiver will consent to act as supervisor only if your FTVA proposal will provide a return to creditors significantly better than they would have received in your bankruptcy. So, if you wish to propose an FTVA, you must offer your creditors something extra. For example, you might offer money from a third party or payments from your income for longer than you would in your bankruptcy; that is, for more than 3 years."

Not attractive. I was hoping for the FTIVA to cut down the 3-year payment duties to a shorter time frame. The FTIVA does not offer that at all. Makes me wonder why this is a called "fast-track" IVA??

Fiveyearplan, to answer your question, I got rid of £66,000 with my BR. There was no way on earth I could have paid back my debts without having a job.

The FTIVA is clearly NOT a lucrative alternative, on the contrary. Now I am wondering who would actually go for this option. Those who win the jackpot or inherit large sums of money?

fiveyearplan

Hi Bissous - I hope you don't think I was criticising, I was just trying to get an idea of what debt you got rid of versus how much you might be paying back on a 36 month IPA with a salary of £50k. It all depends too on your outgoings.

bissous

Fiveyearplan, I did not take your comment as criticism, far from it. Sorry if my response has created a different impression.

The £50K option was just a flight of fancy. I applied for 2 positions which offered a salary in that region. I began wondering how much of the pay package will be left if the 36-month IPA kicks in and if a FTIVA would be a time-saving alternative (it isn't).

Have a nice Sunday.

Yours,
Bissous