IVA questions and clarification

mulderbauer

Hi

Ive held off til now but likely to opt for an IVA but can you please clarify the following.

1. I understand the granting of an IVA is given if 1) they think you are able to pay a monthly balance and 2) Its a safer option for the creditors to recoup some of their monies rather than risking that the debtors falls into bankrupty.

2. After and if a figure is a offered can this be negiotiated down by the IP or is it best to take what you are given?

3. I own a number of properties both in the UK and overseas, none of which have any equity in due to the downturn, that said if they pick up value in the next 5 years and I decide to sell them do I have to declare this or would it be picked up anyhow. Alternatively if they picked up in value would they enforce that I sold them?

4. My job is salary and commission based, if the IVA was set and I had a particulary good 6months/year etc will be my IVA be re-assessed. This applies to my property position aswell

5. I also owe some monies to family and friends.... at the moment its 0% interest and no payments are being made to clear this. If I get an IVA its my absolute intention to start paying these off whether monthly or lump payments however as they are 'unofficial loans will this be taken into consideration on my current financial footing and IVA setting and re-assessing

6. I also need to find X amount of money to complete on another propery im committed to, how does this sit with the IVA setting and re-assessing

7,.I currently have a car on a lease purchase which is covered by my work car allowance, I understand im allowed to keep this but afrer the period finishes id have to pay this amount into my IVA. Is is best to opt out of this now and perhaps opt back into a company car scheme (not the best thing to do financially) or opt out/in just before final payment is due...?

8. Will my Amex charge card be stopped

9. Will any of my bank accounts be terminated (dont have anyones with overdraft facility)

10. Understand my IVA will be on a public domain register but apart from actually looking for it will anyone be notified or find out? Company etc

Think thats it for now, thanks in advance for any advice and assistance.

memberme

answer to 1 is yes.

2) it is your IP that will make an offer based on your full finance details. There will be a snall amount of flexibilioty built into this. A good IP will only propose something he thinks will be accepted.
3) yes you should declare sales. the sale of the proporty in the uk would show up on land register details, which your IP person would check periodically as a metter of course (inheritence etc) Foriegn property you could keep quite about especially if you kept the funds off shore.
4). depends and the last couple of years payslips you have. They would take into account the fluctuating nature..but a prolonged period of increased pay would inevitably lead to increased payments
5).NO
6).You need to prioritise and look at the situation. If this is not be your main residence...let it fall through
7).
8). yes
9). no...you should close any account related to a debt providor as they can take owed cash from any related bank or account. You are supposed to run a basic account only.ie no overdraft fascility or cheque useage.
10).no...credit agencies of course

mulderbauer

Thanks.

Been told by an IP that my situation is a tad complex... and seeing as I have a few properties (hopefull equity in future years..) they advise that a debt mgment scheme would be better suited for me... - As I understand it they again will talk to my creditors, try and freeze my interest, agree a monthly figure and id be committed to paying the full balance. Seems on the surface like a good compromise and idea, has anyone had experience of this and can give me advice?

Thanks in advance.

Charco_2

It's just a Debt Managment Plan.

Who were the IPs that advised this?

memberme

I was on a dmp for a while before the iva. Supposedly creditors like yuo to try this first. I was not happy as the amount of interest some were charging was far more than the payments they recieved and i saw the dmp lasting hundreds of years. At any time a creditor could apply through court for bankruptcy or to change the unsecured to secured debt (my worse dream)...We are all different as are our circumstances but I am very happy and relieved with the IVA