IVA Prediction?????????

Contracts_Engineer

If an IVA were the best course of action, before your creditors are notified by your IVA company do they give you a prediction of how much your payments will be when you have filled out your Income and outgoings?

I realise that your creditors may not accept what you offer but do you just send your iva company you financial information (monthly outgoings and living costs etc.) and then they agree with your creditors and thats it or do you have to accept what they offer???

debtinfo

The payment will be the maximum that you can afford, there is no negotiation for a lower amount usually. the only negotiation is over what that max is for instance you may beleive that a certain bill is essential and they may not, when you have agreed what the max you can pay is then the decision for the creditor is if that is a reasonable amount compared to their debt

Contracts_Engineer

Ok I understand that its the maximum that you can afford. But going back to my other question - by the time youve worked out all your essential bills, mortgauge/rent, council tax, food shopping etc. then the money you have left is the money you pay, as simple as that?

debtinfo

yes that simple plus a few add ons such as if certain assets have to be sold or if they should be excluded. and what happens if you have overtime, bonus's and windfalls etc

Contracts_Engineer

i realise if you get a payrise or you do overtime, windfalls, basically any extra money, your iva is reviewed.

How does it work then when say at the minute your a family of three but your partner is expecting? do you just ring up when the baby is born and re submit your budget?

Also what happens for something like a car service once a year at say £120? can you add £10 per month to your budgeting sheet?

What happens at xmas? do you get any money for presents?

And should you find yourself with a spare bit of cash at the end of each month through good budgeting would you be allowed to open a savings account or is it an under the mattress job?

debtinfo

Usually and i have to keep saying usually because it is an agreement and either side can insisit on the exact terms, the supervisor has the leeway to reduce the figure you pay by himself to a certain extent if you have an emergency, 15% is a common figure, alss usually you can miss 1 or 2 payments and make them up again later. But anything more than that and a new meeting of your creditors is needed to vote on the ammendment at which they can choose to accept of to fail the IVA. about 1 in 3 IVA's fail at some point during their term.

debtinfo

You need to anticipate all expenses during the the term and make sure that they are budgeted for at the start for example servicing the car. The IP will be experienced in these things and a good one will usually point out anything that is obvious that you have missed out

Contracts_Engineer

I have just looked on the following website http://www.my-iva-adviser.co.uk/iva-budget and it states that you are allowed a contigency budget of £50 a month.

ciderwithrosie_2

That's why it's important to note down every expense you have, or likely to have in the near future, whether it be weekly, monthly or yearly, then find ways to build this into your statement of affairs, so that you're not left short and the IVA ends up failing. I also found that writing a letter to your IP explaining some of your expenses helped. Our IP put forward a proposal of £400 pm on our IVA, the creditors pushed for over £500, our IP got them down to £470.

plummer_in_van

Hi Contracts Engineer.We are nearly at the point of getting into our IVA( just waiting for our creditors meeting.
Its good to read and ask as many questions as you can before committting your self to the 5 year poss 6 year IVA.
We have a fairly big family and me and my wife needed to know that we could live off our budget with a fair amount of ease. If you have not got the budget right i dont think you stand a chance.
In our case we had spoke to a number of different companys about how they would approach the IVA and asked as many questions as poss.
There are some very good companys out there and there seems to be some pretty bad ones!!.
Budgets: There is a guide line to which the IP's work to so like the other posts have said you need to sit down and think of everything you have to pay out for, that was quite an eye opener for us! seeing exactly how much we needed to live off.
They do allow you different amounts for car servicing, emergencys, hair cuts, school meals etc the company you decide to go with will sort that out with you.
With regards to overtime etc we would be able to keep the first 10% and then split the rest 50-50 over and above our agreed income.
We have been told that if we do save a bit of money through being carefull from the budget than thats to be encouraged.
I think you have to make sure once again you go with the right company because you are going to have to work with them for the next 5-6 years.If you know or feel you circumstances could change in the next few years( babys etc) make sure you tell them !!!
I hope this has been of some help to you and wish you the best of luck.

Contracts_Engineer

Plummer in the van that is the type of answer which i have been looking for!!!!!! After sitting down and going through everything we know how much we need to get buy.

So just to clarify if you choose a good IVA company they will tell you or give you guidance on what two adults and two children (soon to be three children) should be expecting to live on? (in terms of food shopping, kids clothes for school, car servicing etc.)

Also if you do manage to save some money, this will not go against you (within reason)? Unfortunatly i dont get the chance of overtime as im salaried staff so thats no problem but it worries me if i managed to save a bit a month and i decided not to touch it at the end of the year (when you have another review) it will be included in your payments to them