How much in the £?

lovetohorde

Hi guys how do you roughly work out how much you are paying back to the creditors in the £?

Not sure of the calculation

Charco_2

It depends on the amount you can afford to pay into the IVA and the amount you currently owe.

Say you have debts of £40,000

Calculate your monthly affordable contribution (for easiness I'll say £300)

Multiply by 60 for the number of contributions you are likely to make = 60 x £300 = £18,000 (this could obviously be more if you had to extend the IVA for Northern Rock or if you had equity to address)

Subtract fees. (about £4,000 would be a reasonable approximation)

Divide the amount available for creditors (in this case £14,000) by the amount of your debt (in this example the £40,000 i mentioned at the start)

14,000 / 40,000 = 0.35
therefore each of your creditors will receive 0.35 (or 35%) of the debt they are owed (or in other words 35p for every £)

judojub

So, Charco.
We are currently looking at £240 for a debt of approx £35k. If I follow your math (and I am no good at math) that would show that we would be paying about 28p/£1. Does that sound like a fair contribution?

lovetohorde

judojub wrote: »

So, Charco.
We are currently looking at £240 for a debt of approx £35k. If I follow your math (and I am no good at math) that would show that we would be paying about 28p/£1. Does that sound like a fair contribution?

That sounds good to me mate, but then I am a newbie and compared to my estimate of £0.20 in the £ its alot better :T

judojub

LOL. Thanks lovetohorde:D.
I thought it might be ok, but it still bothers me that most of our debt is with one creditor and it just panics me that they still won't go for it!

Charco_2

The creditors used to have arbitrary figures that a debtors dividend must reach as a minimum (and each credit house had a different minimum figure!) but that has, for the most, part been done away with.

Provided you are giving it your best whack, your proposal will be rated on it's merits. Your IP (through experience) is likely to know what is going to cut muster with your creditors and what isn't...

Both the dividends you have suggested above are likely to be reasonable in your differing circumstances, however when it goes to the creditors meeting you might find the figures shuffled a little and your dividend might rise by a penny or two. (this might happen either by your creditors suggesting an uplift - ie you are spending too much on groceries so cut that by £30 and pay it into your IVA instead moving your monthly contrbution from £240 to £270 Judo, OR your creditors might cut your IPs fees a little and bring more money into the pot that way).

EDIT: Judo who is your biggest creditor?

judojub

Charco wrote: »

EDIT: Judo who is your biggest creditor?

Hi Charco.
Yes we fully expect that monthly figure to shift (hope it doesn't though). £270 per month would be upper most limit for us:eek:

Our biggest Creditor is Lloyds:(

FavDaughter1

Hi, our biggest creditor was Lloyds,our dividend was less than 20p in the £ . i was anxious Lloyds wouldn't accept it but they did.

creditors did apply for modifications but they were to the fee's the IP wanted - she got less,more going to the creditors,it didn't effect what we paid at all.

keep hopeful,hang on in there

judojub

Here you are again FavDaughter with encouraging posts!!! LOL. Thank you again.
I feel really awful to be honest. I have been with Lloyds since I was a teenager. I am even on first name terms with most of the peeps in my local branch, they ask me how the kids are, ask how I am, they have always been so friendly towards me..... Makes me feel so much worse :-(

judojub

Ooh and sincere apologies to lovetohorde for maybe 'hijacking' your thread.

robbies_gal

judo dont feel bad to the staff! theyre not the creditors they just work there!

ours was 35[ in the pound now its gone up to 40 but thats a reduction in the ip's fees not our amount-as long as that doesnt change i dont care how much they get