What Do You Pay For Your IVA?

getdebtfree

Hi guys

Im just worrying again..:(

I have debts of 24k, 3 children and bring in £1900 a month with wages and tax credits.

My IVA adviser worked out I can only pay £115 a month to my creditors. All my outgoings are average as well or pretty much below the standard. And seems to think the creditors will accept..

But after reading Martin Lewis guide on IVA'S it says expect to pay a minimum of £200 plus the IVA fees are quite high.

So if im paying 115 quid a month back, surely after fees to IVA company ill be barely paying anything back..

Im just getting everything together now im panicking again..

Marcus

milliemonster

To be fair, Martin Lewis's IVA guide is very out of date and extremely biased so I would take it with a pinch of salt. Having said that, on the whole you do roughly need a disposable income of around £200 for an IVA but there are many reputable companies who will happily propose an IVA for a sum less than that and these are accepted.

If you have done your homework, the company you have chosen to represent you is reputable and they are happy to propose on those figures then go with it, they wouldn't put it forward to your creditors if they didn't think it would have a good chance of being accepted, don't worry about fees, your creditors agree the fees and if they have issues with them your IP will amend them accordingly at the creditors meeting.

UpToMyNeckInIt

Hi Marcus,

Agree with milliemonster.

My debt was £34.5K, net income £2400pcm, repaying £277pcm. Like you, nothing exceptional about my outgoings. Martin's IVA guide is just that. It is also quite out of date, and the anti-IVA bias is obvious (my IPs fees are nowhere near what is quoted in the guide).

Also, it's not unusual to offer a lower dividend. If that's all you are deemed to have in disposable income, then what else can you do? Sometimes the creditors may ask for an extended payback period over 6 or 7 Years to release a better return. Your IP would not propose the IVA if they were not reasonably certain of success.

Speak to your IP with these concerns. You have to trust them to a point. Best of luck, and keep us posted with how you get on. Andy.

Gimpsdad

The key is that you have done your research, you have been advised of all options, including BR for example, and that you have made your own decision. If you are happy with it, and the IP is happy to propose the deal then, as has already been said, it must be because he or she is confident of acceptance on the basis of it being the best deal available to creditor and debtor alike.

As for Martins guide, which would be laughable if it didn't have such potentially serious consequences, this point has been mentioned many, many times previously. When is he going to do something about it I wonder? Type IVA into Google, and his guide comes up 4th, I think, on a natural search. Open that up and it would frighten anybody to death. I wouldn't mind so much, only that Martin Lewis has no qualifications whatsoever to advise on debt and is potentially mis-leading countless numbers of people. He probably doesn't mean to, but ignorance is no excuse.

Max_Maxwell

I'm not sure if it's been made clear here or by your IP that the fees are deducetd from your monthly repayment. They are not in addtion to, and your creditors won't be seeking any additional payments from you to cover the IPs fees.

As stated by milliemonster, the fees are agreed between the IP and creditors and that's down to them to sort out. It's a business transaction and both parties would only agree to the IVA if it was mutually beneficial.

The one thing that can't be stressed enough is to be 100% certain you can afford the monthly repayments. Don't sign any agreement document until you are confident the payments are workable and achievable. It's easy to get swept along by the process and lose sight of the reality of what is really happening and what you are agreeing to. This is a 5, 6, 7 year agreement and if you can't meet the payments after 3 months you are in a far worse position than before.

However, it sounds as though you have done your homework which is crucial at this time.

Depth_Charge

Hi

Spot on Max

pebble17

I have debts of over £60k and I'm only paying £150pm.
At my creditors meeting the creditors made my IP agree to take a smaller cut out of the £150pm

getdebtfree

pebble17 wrote: »

I have debts of over £60k and I'm only paying £150pm.
At my creditors meeting the creditors made my IP agree to take a smaller cut out of the £150pm

Yes it seems the guide is out of date, I was panicking for nothing lol

all my paperwork has gone to IVA company just signing the agreement. Co-op bank account applied for...

Now will have the wait to see if amount to pay is accepted.

Then we can start living again, will feel like a massive weight off my shoulders..

sarah222

Our monthly payments were £797 but luckily just made the last one yay

Vikipollard

Mine started out in the proposal as £208/month, and at the time the IP said I just qualified as I had the £200/month available. The first creditors meeting refused the IVA, but it turned out that was about the fees the company were charging. They reduced their fees and it went straight through.

That was six years ago, and times have changed a lot since then. As some wise posters on here have said, they do seem to accept less now ~ and it's still likely to be a helluva lot more than they'd get through bankruptcy.