penny in the pound ? how worked out

luckylady45

hi all

I have read loads on this and other sites and as well as monthly payments to IVA's people mention what pence in the pound are you offering ??
How exactly do you know or work this out
I am guessing that the IP involved does it but for my benefit
how does it work'
Many thanks
LL

james32_uk

It's basically:
proposed total repayment - (IVA fees divided by total outstanding balance)

So if you owe £50k, propose to pay back 60*£420 payments (total £25.2k) and IVA fees are £8k it will look like this:

(£25,200 - £8,000) divided by £50,000 = 34.4% or 34.4p in the £.