How is the length of IVA calculated

woody24

I am in the process of figuring out whether an IVA or bankruptcy is the best option for me and I just had a few questions about IVA.

How is the length worked out? If I really really budgeted, I could have a surplus of £500 per month - would this mean my IVA would be a shorter term than if I could only pay £300 per month?

My total debt is £27000 and that includes a £4000 personal debt to a friend - what do they do with that debt - do they include that person as a creditor?

Thansk everyone

debtinfo

Generally an IVA length is going to be 5 years, but can be longer, basically it is an agreement between you and your creditors and the creditors will push to get as much as they can and you will push the other way.

The only time it would be alot shorter is if you can pay the full debts plus interest plus costs in a shorter period of time

Usually they will ask your friend to drop their claim, vut as above it is an agreement so you dont have to do as they ask

jamkid2001

An IVA is normally 5 years,sometimes there is an extension if you miss a payment or have to make reduced payments for a short while.
You pay your disposable income into the plan,this is the amount of money left after ESSENTIAL bills are paid. there are strict allowances for certain items so its worth getting some advice on budget.
The disposable income pays your IVA fees first,usually the first 6-12 months payments,and then your creditors.
If your income rises, they usually have a review to take around 50% of any extra money you earn into the IVA
So, overtime, bonuses windfalls etc, half gets paid into your IVA. The plan still lasts 5 years but your creditors get a better return out of you.