IVA Advice and Help please

lovetohorde

Hi guys, I have been on a debt management plan now for over 3 years and am thinking that a IVA may be the way forward, going bankrupt is not an option due to my career aspirations.

I currently owe £41k and pay £113 a month on a debt management plan.

My queries which I hope you can help me with are...

1. Will the company who deal with the IVA if gets accepted be able to access all of my bank statements, accounts etc?
2. If i do any overtime in work, does this all go straight to the creditors?
3. I have a second job which i am on a BR tax code (due to second job) and pay no national insurance due to low amount of income on this second job... will this be included in the IVA or can I not declare it?
4. On the above statement I have had this second job for a number of years now and have never declared it to my debt management company or creditors... if I now take up a IVA and declare it, will I get in trouble for not informing them earlier?
5. I pay towards a pension with my full time job, will this be effected?
6. I currently pay £50 a month out of my income towards shares in the company and if I get accepted on a IVA the shares will mature 3 years into the 5-6 year plan... will they demand the payout?

Hope someone can help as I really want to decide what to do now for the best.

Cheers

FoggyBrain_2

Hello and welcome. First of all I suggest you have a peek on https://www.iva.com and pick a couple of IP companies to have a chat with, They won't charge for the advice.

As for your questions:
1) They won't get automatic access -- they will only be able to see what you provide them. You will be asked for at least last three payslips, bank statements and staements from creditors.

2) Modern Proposals uaually deal with overtime as an amount equal to 10% of your usual income is ignored and is yours. The rest is split 50/50 between you and your creditors. Sometimes the creditors will amend this to a straigh 50/50 split.

3) Second job income will have to be declared and included.

4) You don't have to stay with your DMP company for your IVA -- if you choose a different company they will not know or be interested. DMP's are very informal and not at all regulated so the information passed between debtor and DMP company is usually vague anyway.

5) You can usually carry on paying into the company pension at the lowest rate (if there are higher tiers).

6) Shares are "iffy" .... You are unlikley to be allowed to continue paying the £50 per month unless contractually required to. And if they materialise whilst in IVA you might be required to cash them in for the benefit of the creditors. This will ned to be discussed with the IP as it is possible they might get them excluded from the proposal..... but even then, it will be up to the creditors whether they accept the exclusion. At this stage, however, everything can be negotiated.

Best of luck --- But DO speak to a couple of other companies.

lovetohorde

FoggyBrain wrote: »

Hello and welcome. First of all I suggest you have a peek on www.iva.com and pick a couple of IP companies to have a chat with, They won't charge for the advice.

As for your questions:
1) They won't get automatic access -- they will only be able to see what you provide them. You will be asked for at least last three payslips, bank statements and staements from creditors.

2) Modern Proposals uaually deal with overtime as an amount equal to 10% of your usual income is ignored and is yours. The rest is split 50/50 between you and your creditors. Sometimes the creditors will amend this to a straigh 50/50 split.

3) Second job income will have to be declared and included.

4) You don't have to stay with your DMP company for your IVA -- if you choose a different company they will not know or be interested. DMP's are very informal and not at all regulated so the information passed between debtor and DMP company is usually vague anyway.

5) You can usually carry on paying into the company pension at the lowest rate (if there are higher tiers).

6) Shares are "iffy" .... You are unlikley to be allowed to continue paying the £50 per month unless contractually required to. And if they materialise whilst in IVA you might be required to cash them in for the benefit of the creditors. This will ned to be discussed with the IP as it is possible they might get them excluded from the proposal..... but even then, it will be up to the creditors whether they accept the exclusion. At this stage, however, everything can be negotiated.

Best of luck --- But DO speak to a couple of other companies.

Thats great thanks for your advice there mate really helpful.

Can I ask if they decline me for a IVA how long do you recommend leaving it before trying again? (if i choose to)

Also from your experience with debt like mine, would a payment of £250 likely to be accepted do you think?

The company I have been speaking to is called McCambridge Duffy.

FoggyBrain_2

If they decline you it will all depend on the reasons as to when and if to try again. McCambridge Duffy are a respected company and won't be putting a proposal forward if they weren't confident. As for payment of £250 ... the level of payment will be decided by taking your income, deducting your living expenses and paying the rest to your creditors.

£250 per month will mean you are paying £15,000 over 5 years. Less IP's fees of around £3500, leaves around £11500 for your creditors. I have seen dividends of as low as 18 p in the pound, and yours seems a lot healthier.

lovetohorde

FoggyBrain wrote: »

If they decline you it will all depend on the reasons as to when and if to try again. McCambridge Duffy are a respected company and won't be putting a proposal forward if they weren't confident. As for payment of £250 ... the level of payment will be decided by taking your income, deducting your living expenses and paying the rest to your creditors.

£250 per month will mean you are paying £15,000 over 5 years. Less IP's fees of around £3500, leaves around £11500 for your creditors. I have seen dividends of as low as 18 p in the pound, and yours seems a lot healthier.

Thats great thanks mate.

Any idea what £250 a month, or as you put it £11,500 for my creditors work out in the £?

FoggyBrain_2

11.5 / 41 x 100 = 28.04%

lovetohorde

FoggyBrain wrote: »

11.5 / 41 x 100 = 28.04%

Many thanks for that Foggy

If the IVA gets agreed what is it like living with it once its all setup?

For example if I set a certain amount aside each month for dental, optical, servicing etc once all of my direct debits go out aswell as payment to IP is the remainder of the money left over mine to use or save? or do they then monitor what is left over and try and claim it back for themselves? i.e. the creditors

Also does anyone know the maximum you can claim for on your budget for things such as; vehicle servicing, dental, optical, clothing etc etc... as I am struggling to find a guideline on what is reasonable in the creditors eyes?

Homershairdo

Hi,

The beatmydebt website has some guidelines for what you can claim, bur off the top of my head,

Servicing - £22 per month
Optical / Dental - £15

http://www.beatmydebt.com/_contribute/Documents/b269d64ceb20466db96c129bee84453d.pdf

Charco_2

beatmydebt is run/owned by a man James Falla - a man of vast experience in the industry! What he doesn't know, you don't need to know!

lovetohorde

Charco wrote: »

beatmydebt is run/owned by a man James Falla - a man of vast experience in the industry! What he doesn't know, you don't need to know!

Thanks mate appreciate it :beer:

lovetohorde

Guys with child support agency does the IP or IVA company contact them for any reason?

I havent declared my second job from a while back and now realise that if they did look into this then it is clear to see that the direct debit that goes out to the csa is not 15% of my income, roughly £45 short of what it should be.

Any advice guys please?