IVA Question

Charco_2

It's worth speaking to a few companies... this could go back and forth forever and i'm happy to do that obviously (but a phone call would be quicker!)

Based on those figures you're coming closer to a dividend of around 30p in the £ for your joint debts but really it will also depend on whether your OH gets a job and how that income splits between your TWO IVAs (that are interlocking).

You should also find out a fair bit about Bankruptcy - a good IP will inform you about this aswell as the IVA. You could consider both going BR, or just your wife while you enter an IVA...

boblardo

We spoke about BR during the initial assesment but the lady @ CCCS said that we had too much surplus!!!!

Any recommendations on who to speak to i suppose Payplan & CCCS are the obvious choices?

Charco_2

Well they're the obvious choices on here, but i aint no fan!

Payplan put you in a DMP (for how long?) before discussing an IVA with you...

boblardo

We have spoken about BR, we had the fees saved up too. Day before we were due to go to court we phoned the CCCS who again advised that we had too much surplus income to go bankcrupt and we opted against bankruptcy and started a DMP. Previously we had been on a DMP with Payplan but stopped paying to save fees.

Lets be clear here, i am not trying to get away with NOT paying back my (our) debts. Changing circumstances have led us into this uncertain stage but we are making an effort to repay what we owe. However, 16 years on a dmp is so demoralising, there is no light at the end of the tunnel and of course its assumed that all itnerest has stopped.

We are currently on a DMP and an IVA has been suggested, we have a phone interview next wednesday to discuss.

Just got my payslip and based on our DMP budget we have £451 surplus but we are council tenants so have no property to sell. Are the IVA budgets similar or more modest than dmp budgets, also will an offer of 32p in the £ be good enough?

Charco_2

No I know you're not simply trying to get away with anything, if you were you'd just have gone BR (not that that is a cop out either - its very difficult even without a Payment Order).

On the other hand, even if you did have a surplus, all that means is that you pay it for a year (or three) and then you're done (the OR will eat everything up in fees and your creditors get next to nothing).

32p can be a stumbling block with HSBC who like a dividend of 40p in the £
Northern Rock are a big creditor too so I would say they'll ask for your IVA to be extended to the sixth year.

Your budget with CCCS in a DMP and your budget with CCSVA in an IVA i would imagine will be exactly the same!

debtinfo

Hi boblardo, just wanted to clear up, not that i am suggesting you should go bankrupy, an IVA may be the better option, something you have to decide, but there is no such thing as to large a surplus to go bankrupt as long as you are insolvent ie if you are unable to pay the required original monthly payments then bankruptcy is an option as well as IVA and DMP