IVA payments

einalem

At the moment we are paying £1 token payments on our debts(i've totalled them up about £16,000) our income is going to rise to £24,000 in september(mixture of child tax credits, child benefits, student loans and grants(we will both be students)
we have one child and pay the usual gas electric etc and about 60 for phones a month
what i would like to know is approximately(even roughly) how much we would be expected to pay if we entered an IVA,
I want to get these debts paid off so this seems a reasonable option rather than bankrupcty(want to avoid!)

Also can bank overdrafts be counted as a debts as that would add another £3000 onto the debt?

Thanks melanie

Deep_In_Debt

Hi
Have you contacted any of the debt charities - CCCS, Payplan, CAB - to ensure that an IVA is right for you as they are only suitable for a small percentage of people, and if it fails, could result in bankruptcy.

A dmp maybe more suitable for you. I would suggest you keep paying token payments until September and then either contact your creditors directly or get in touch with one of the above who will help you work out what is affordable to you and work out a payment plan for you.

Good luck.

Jo*_2

If you do go with an IVA though, they would send you a sheet to fill out your incomings and outgoings. Then they would work out a suitable payment so that you can still get by. I pay £260 per month and that was on a debt of nearly £29,000. Its a five year contract and i'm half way through it. I'll only end up paying back around £15,000

Deep_In_Debt

Remember though, that a lot can change in 5 years and IVAs are inflexible in that respect and with a dmp they take into account the cost of living rises etc, job losses...

classybird32

Hi,
I completely agree.I have got an iva and i am 3 years into it. It was ok at first but now i feel completely trapped as i want to get another job with a higher salary but i feel that their is no point as the more you earn the more you have to pay back.
IVA's definitely do not take into consideration lifestyle changes and to be honest i feel very down in the dumps about not been able to do anything.Or can i???

AdamMerry

classybird32 wrote: »

Hi,
I completely agree.I have got an iva and i am 3 years into it. It was OK at first but now i feel completely trapped as i want to get another job with a higher salary but i feel that their is no point as the more you earn the more you have to pay back.
IVA's definitely do not take into consideration lifestyle changes and to be honest i feel very down in the dumps about not been able to do anything.Or can i???

That's just how i feel, price of living going up so i was working 7 days a week for the extra money then having to give half of this to my IVA company but then again half for me to keep is better than nothing.
I have cut down on my overtime now, just about making the payments with i little bit to spare (and it is a little bit) but what keeps me going is only 2 1/2 years left then the money is all mine and to make sure i never get in to this situation again.
I just wish i had found this forum before i entered a IVA and had gone down the bankrupt route as i had nothing to loose.