Advice Please

smith1959

I have aprrox £85000 on unsecured debt. 12 months ago all my creditiors agreed to reduced payments, some freezing interest, while some reduced the interest charged.This was arranged by myself following advice from National Debtline and CCCS. I am now in a situation were my I have had to agree to a comprehensive restructure of my pay to keep my job. 12 months ago my fixed pay was £2750 ,this month it will be £1500. I am therefore only going to make token payments this month. What I would like to know to know based on my debt what would I have to pay off over five years to have a chance of getting an IVA accepted.
I would appreciate any advice or comments

smith1959

I was hoping hoping for some advice or comment.As you can see I have a big problem. quite a few of you have viewed my post, but nobody has responsed.Any reason why,am I a lost cause?

Charco_2

It's a peculiar question, IVAs require you to pay what you can afford (no more, no less) and so long as you're putting your best foot forward it should stand a reasonable chance of being accepted by your creditors.

However, if we assume that most creditors look for a dividend of somewhere between 25p and 40p in the £ - even though there are no such requirements in the statutes!

Plus there would be your IPs fees (applicable whether you go to a "charity" or one of those crookie crook swindlers who earn fees!)

So say £30,000 over the course of 60 months!?

But then again, that's a load of rubbish - there's no real reason why an IP couldn't put forward a proposal where you put forward £20k or £15k - it really depends on your circumstances, HOW MUCH CAN YOU AFFORD!

I would certainly try speaking to a company, who will not charge an up-front fee, and who would go through your finances with you in detail even if you tell them your name is Mickey Mouse and your contact details are 0800 BITE ME!

fiveyearplan

Are you only thinking of IVA or have you contemplated bankruptcy?
Have you been to one of the debt charities for advice?

ps look at all the other views vs replies and you'll see it wasn't only your thread that was getting viewed without replies. Most people on this forum only lurk trying to get information before they start posting. Nothing wrong in that - you joined over a year ago and only have 4 posts. Many people don't feel comfortable enough to post but all are welcome to look! Thats what we're here for.

smith1959

Only looking at IVA as I work in financial services. The question is based on my understanding that you have to pay off a certain percantage of your debts for an IVA to be accepted.Does this make sense?

Charco_2

Not really. You could in theory pay back 100p in the £ in an iva and i know of instances where people have paid back more! An IVA is not about debt avoidance, it's about recognising a bad situation and trying to make the most me it, deal with it as best you can. In an IVA, you'll be expected to pay back all that you can afford to within a reasonable time frame (usually five years - used to be three and if Northern Rock get their way it'll soon be six!)↲