Iva?

sunshine111

Hello,

I approached a Compnay regarding an IVA for both myself and my oh, we were advised that there is not enough income and the best option is Bankruptcy.

My husband can't go Bankrupt as he has a business he is a partner in a business which is not limited, and we have been told there will be problems if he goes down this route...

My main query is minimum income, is it different with each IVA company - I dont want to make drastic decisions in going bankrupt when we may have enough income going with another IVA company who will accept a slightly lower income...

Thanks

Charco_2

It's not really up to the IP/IVA what is or isn't enough income. However your IP would know what is likely to be affordable and what your creditors are likely to accept as an ultimate dividend and what would look like an IVA that could come to a successful ending!

Some IVA companies may not entertain an IVA of contributions less than £200 or £250 others will run an IVA for £150 (ultimately your IP is going to be reclaiming his fees from the money you pay in during the 5 year period).

Your creditors are unlikely to accept an IVA that doesn't at least provide a 25p in the £ dividend so it can also depend on how much unsecured debt you actually have - your IP might not want to waste either your or his time!

However ultimately, it should be YOUR IVA, and if you want one put forward to your creditors then no-one should tell you you can't - but you'll have to find an IP willing to take the risk that the work they put in in drafting your proposal might be a waste of all your time since it might not get the nod from your creditors!

Did your IP explain in what way you did not have enough income?
1. Not enough to cover your monthly household expenditure.
2. Not enough to cover the IPs fees.
3. Not enough to produce a suitable dividend for your creditors.

Did they do an Income and Expenditure with you and what kind of Disposable Income did they decide upon!?

sunshine111

Thanks Charco,

When I went through the Income and Expenditure by the time all incidentals had been added on there i.e. pet insurance even though we have no insurance etc there would have only bee about 18p in the £ offer which she said would not be accepted, she did not mention IP's fees at all, and said that after a few months we would struggle and end up bankrupt.

Will it be worth while just trying initially to agree drastically reduced payments with the Creditors and come to some arrangement of our own??

Charco_2

That would depend what you have to offer.

There's no reason your IVA would then go on to fail just because you're offering only 18p in the £ - would be interesting to know if that included a rough estimate of what her fees might have been. (Female IP or female member of staff?)

If you're not going to proceed with an IVA - or not able to - then you may have to look at another option. Check with another IP to see what they say but after that obviously you could look at Bankruptcy or DMP
Bankruptcy is not an option for your husband, but would it be an option for you?
DMP - not a big fan of this option, but it does have short-term benefits if you're struggling (others on here are fans of this option - horses for courses!) Is it likely that your husbands business will pick up and your debts might become more affordable.

(sorry - there always seems to be more questions than answers but small things can make a difference. It's hard to give a full picture of the options when you don't have all the facts that's why these sites are useful for a couple of pointers and that but for real advice you have to speak to professionals - don't pay anyone though unless they provide a solution)