IPA's..??

TinTin2004

Correct me if I'm wrong but I'm in the middle of deciding whether to go BR or IVA..???

I've just read (on this highly informative website...God I wish I came across this years ago!) that a BR IPA takes ALL your disposible cash after normal living costs but I seem to remember that an IVA is a fixed amount per month with periodic reviews along the way.. ?? Am I right in thinking this??

I believe an IVA would be more beneficial for me if this is the case. Is this the trade off for getting debts written off after 12 months rather than 5 years over an IVA???

Also I'm about to go self employed so how would any review take into account what I need to be setting aside for tax and NI etc..??

tigerfeet2006

Yes the OR will want all of your surplus in BR...but the allowances in BR are different than in an IVA so you will find you have different amounts left from one to another. If you want to pop up your SoA someone can look at it as an OR may look at it but be aware that every case is individual and different offices follow the guidelines slightly differently.

http://www.stoozing.com/msoc/soacalc.php

Have you taken advice about your circumstances yet?

sniggings

TinTin2004 wrote: »

Correct me if I'm wrong but I'm in the middle of deciding whether to go BR or IVA..???

I've just read (on this highly informative website...God I wish I came across this years ago!) that a BR IPA takes ALL your disposible cash after normal living costs but I seem to remember that an IVA is a fixed amount per month with periodic reviews along the way.. ?? Am I right in thinking this?? wrong somewhat, both do reviews, on a IPA you have to tell your OR if your income or expenses change, so your payment can go up, down or be set to £0, on IVA it can be harder to get a review and it's up to your case worker if they want to lower it, setting it to £0 is not something they do as you need to be able to pay a % of your income towards your IVA or it can and will be cancelled, with a BR IPA as said it can be set to 0 or you might not even get one, if no excess income, you don't get one, after 12 months if still no excess you are free and clear, if you do get an IPA it runs for 3 years, so no way is an IVA imo better than a IPA, a lot of people fail IVA as they can not get the payment lowered when their income lowers

I believe an IVA would be more beneficial for me if this is the case. Is this the trade off for getting debts written off after 12 months rather than 5 years over an IVA??? a big difference between the 2, is an IPA only takes what you can afford, to get on the IVA scheme you have to be able to pay a certain amount of your income, if your excess income is not high enough you can not get on the IVA system

Also I'm about to go self employed so how would any review take into account what I need to be setting aside for tax and NI etc..?? if going BR they will work with you on that, will not be a problem, as said if on an IVA you have to meet your payments or the IVA will fail, so not the best for someone unsure of their income, as said they do not have to lower your payments and some people find it all but impossible to get them to even talk about their payments once it is set up,

hope that helps, if you help anymore questions on an IVA best to ask them in the IVA section, link at the top of page, as they know all the ins and outs on them.

tigerfeet2006

Beautifully put Sniggings.

TinTin2004

Just one question please..

Let's say it's two years down the road after comencing my IVA and being self employed, if for some reason my income was affected due to work flow and I cannot pay monthly payment.. if I'm then made bankrupt, would my credit file be triggered by another 6 years of from the date of me being made BR or from the date of the original IVA?

alastairq

yes, that's correct.....6 years from date of BR petition.

HPS

I agree tintin, that the people on here are very helpful. I cannot really say anymore as sniggings and tigerfeet and alastair beat me to it. I think that if it were me, I would go BR. But that's just me. I fear you are prolonging the inevitable; but at the end of the day it has to be your decision. Good luck with whatever you do. x