iva dvidend help please

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hi, ok so i am trying to write up a variation offer for my 4th year as unable to pay 10k as was originally asked for as have no equity in my property.

i am having trouble working out the final pence per pound the iva would get due to the fees etc.

the total debt is 28000 (after looking carefully this may be 25k as seems to be a duplicate debt in the list)
the total paid would be 13000

the fees are stated as 3000 plus vat for nominee's remuneration
and the supervisors remuneration is 20% of the realisations plus vat

originally there was to be an extra 10k paid which shows the dividend as 50p per pound. im struggling to work out how much would be paid if we asked for the iva to end after the 5 years with no additional payment.

please dont tell me to ask the iva supervisor as they want me to pay an additional 2 years payments to make the 10k as they say no creditor would take less than the original figure which i am told is a lie.

please help me
trying to lose 3 stone by end of 2014;)

Comments

  • Charco_2
    Charco_2 Posts: 1,677 Forumite
    edited 21 January 2011 at 9:52PM
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    You may not like this but...

    You are going to have to ask your IP/IVA company! I'm guessing you're with Payplan - 20% is rather generous to themselves but two year extensions is generally a trademark of theirs!

    The good news however is, just coz they are recommending this or trying to coerce you into it doesn't mean you have to agree. It's your proposal so insist that an offer that suits you is put forward. If they won't agree to this ask for the details of their regulatory body - that will get their attention! I promise!

    You've no equity so you shouldn't have to address it just because they have a badly phrased IVA proposal. On the other hand while you can insist on putting forward YOUR offer, the creditors can reject or modify this meaning they might only accept an extension. But at least you're going in offering low and negotiating, if you offer high there's only one way to go!

    The only thing is, you can't make an offer to your creditors outside the IVA, you have to go through the IP but he has to provide the service properly. It's your offer - even if the IP feels it will fail - it's YOUR OFFER! So offer to end the IVA as scheduled - and insist that the IP helps with this. Their regulators will want to know about the poor standard of service!
    Would you ask the wolves to look after the sheep?
    CCCS funded by banks
  • Charco_2
    Charco_2 Posts: 1,677 Forumite
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    Just to add, I will calculate your dividend if you want, but you don't need me to!
    Would you ask the wolves to look after the sheep?
    CCCS funded by banks
  • patchy987
    patchy987 Posts: 433 Forumite
    First Post First Anniversary Combo Breaker
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    Charco wrote: »
    Just to add, I will calculate your dividend if you want, but you don't need me to!

    i would really appreciate this :)
    trying to lose 3 stone by end of 2014;)
  • Charco_2
    Charco_2 Posts: 1,677 Forumite
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    Thes are rough calculations based on the figures you've given - it should give you an idea of how to calculate it for yourself though when you've got more accurate figures!

    Debt £28,000 or £25,000

    Repay £13,000 over five years

    Nominee £3,525
    Supervisor £1,895 (this is 20% of £9,475)
    Total fees £5,420

    Equity £10,000 (if achieved, £8000 would go to IVA and 20% would go on fees!)

    Total pot for creditors: £13,000 - £5,420 = £7580
    Plus £8,000 from equity = £15,580

    Divide £15,580 by £28,000 = (0.556) this would be a 55p or 56p dividend
    Divide £15,580 by £25,000 = (0.6232) this would be 62p dividend

    Without the equity
    £7,580 divided by £28,000 = (0.2707) 27p in the £
    £7,580 divided by £25,000 = (0.3032) 30p in the £

    (I hope my calculations are correct!)

    Without the equity, this is still an attractive dividend but it might depend on how the IVA was worded. You definitely need to go through your IP to get this sorted though, it will require a creditors meeting I'm sure.

    You can force your IP to put forward the offer as you want it though, it's your IVA not his! If the IP does not play ball, ask to speak to his regulators. This does not guarantee that your creditors will play ball though... they may insist on a year extension (as you've no equity to address, this would sound rather unfair but it will depend on the wording of your original IVA - another issue to discuss wth your IPs regulators perhaps?) You could always offer a 6 months extension!?

    Negotiate!

    Good luck!
    Would you ask the wolves to look after the sheep?
    CCCS funded by banks
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