IVAs

up_the_creek_5

Hello

I have a large un-secured debt of approx 83K. I have contacted my trade union debt helpline & they have arranged for someone from Payplan to contact me. As far as i am aware because of my job i cannot go bankrupt. Also i do not want to go bankrupt as i do want to pay something back.

My intial reaction is to apply for an IVA. However, my intial budget indicates that there would be a monthly surplus of between £168 & £188 per month would this be enough? I would also add that i have no real assets of any worth.

Is it true that an IVA has to have a minimum payment of
25p in the pound & that HSBC insist on 35p. I cannot give them what i don't have. Therefore what might happen if i am refused an IVA. Could i be made bankrupt, surely doing this would mean my creditors would get nothing at all. Alternatively, would may creditors be likely to write off some of the debt off on a DMP.

Thanks

CLAPTON

basically it goes like this for an IVA

say you can pay 175 per month , thats 2,100 per annum and 10,500 over 5 years (the normal term for an IVA). Suppose the IP fees at say 5,000 that means your creditors will receive 5,100 on debts of 83,000 which is about 6 p in the pound. Most unlikely that any of your creditors will agree.

Bankruptcy would seem the best bet but if that means you lose your job then thats not an obvious choice either. Have you actually checked about bankruptcy and your job?... What is your job?

That only really leaves a DMP, however paying 2,100 per annum makes about 40 years to pay it off.

Have you posted a SoA here; maybe people might be able to help a little.

jellycat40

some creditors will write of partial debt if you have been maintaining DMP for a while but many will not guarantee it and the major players seem to be the ones most likely to make you pay it all!!!!

Louise

livinginhope

Hi there up the creek,with the amount you have to pay each month creditors would not agree to an IVA,unless you could give a lump sum at the end as well.As bankruptcy is not an option I would go down the DMP route,give Payplan or CCCS a call.
Good luck.

up_the_creek_5

Hello

Just spoke to Payplan & feel like a great weight has been lifted. Gave them a preliminary budget & an IVA might still be possibleas their are various clauses in the legislation. They said that the creditors will probably be realistic about my situation.

Will be speaking to a more specialised advisor next week. I just hope i can sleep a bit better tonite.

They also said that if my job is at stake ( i am an MOD civil servant) i can't be forced into bankruptcy, especially as i have no assets or my own property.

Thanks