One-Off IVA - How much to offer ??

Max_1066

Hi,

I've been paying into a DMP arranged via CCCS for just over a year. I've come to the conclusion that this will take more than 5 years to settle therefore an IVA would be a better approach (in fact an IVA would have been a better option initially). The money paid into the DMP (£4k) has to an extent been wasted as it could have gone towards the IVA settlement.

Based upon a recent Income & Expenditure summary the net surplus is just £21 which doesn't include the DMP. I've therefore stopped paying the full amount into the DMP and just pay £25 (ie £5 to each of 5 creditors).

In view of the above I'm considering a one-off IVA but do not have a feel for how much this would be ? The general guideline seems to be 25% of the total debt plus IVA fees.

The total debt (sole name) is made up as follows:-

Santander £17400
AMEX £8700
First Direct £6700
MBNA £10000
RBS £8400
Total: £51200

Based upon the above this would be £51200 x 0.25 + £4500 (total fees) = £17300

Having spoken to a few IP's the figures suggested range from £12k to £20k !! The higher the figure the easier its would be for the IP to reach an agreement with the creditors I assume ... call me cynical.

Although, if made bankrupt the 'dividend' would be £0. However as a company director I wish to avoid the bankruptcy route hence I'm looking at the one-off IVA. A family member is willing to lend me the amount required although I'm uncertain as to how much to offer ?? Obviously the lower the better.

It seems to me that anything above £4500 (the IVA fees) would be better than £0 from a creditors point of view.

Any advice/guidance would be very much appreciated. The money offered would be available immediately by the way.

Thanks in advance.