IVA Q's

Sars49

Hello, me again! People who are thinking of rushing into BR or an IVA should read my posts, because ALL the advice the wonderful people on here give us, is spot on....TAKE YOUR TIME!

My OH & I were all ready to go BR, then a change in circumstances with my OH & now I am going BR & OH is looking at an IVA, so we now have ?'s about IVA.

How is the I&E worked out with my possible IPA & my OH IVA?

OH is a sole trader, is an IVA OK with that?

An independent IP or a charity reccommended one?

Have had one chat with the BDL & they have been quite helpful, however felt I was being pushed towards using one of the IP's they use.

Generally speaking, how long does an IVA take from finding an IP to start paying?

I have read that IVA payments are quarterly, does that mean your first payment will be 3 months worth of the arranged amount?

I think that will do for now, I'm sure I will be back!

Thanks again

UpToMyNeckInIt

You have provided no indication of your circumstances eg: debt level, your income, amount of assets etc. So this is purely my opinion, speaking as an IVA customer:

Before either of you commit to any option, please do your research. I came across this website (set up by a CAB advisor), which has about the easiest to read comparison of IVA with BR in lay-person terms:

http://debtcamel.co.uk/hard-choices/iva-vs-bankrutcy/

The whole allowances vs true cost of living is a hotly debated subject - check out the 'IVA Support and Discussion' thread.

As far as IVA’s are concerned, regarding what is deemed 'reasonable' expenditure is outlined in the Stepchange Budget Guidelines, which can be downloaded here.

https://docs.google.com/file/d/0B7La...N1E/edit?pli=1

For IPA’s, these links give you useful Citizens Advice info and calcuator below on IPAs & IPOs that includes a link to the I/S B/R bankruptcy expenditure allowances.

http://mymoney.nedcab.org.uk/moneyadvice/ipaipo.asp

and:

http://www.insolvencydirect.bis.gov..../Annex D.htm

If you are careful to correctly record your income and expenditure, your IVA/IPA payment should be set at quite an affordable level.

Being a sole trader, your O/H will be fine regardless whether they choose BR or IVA. (Only if he wanted to become a ‘Limited Company’, and a director of the same, only then is BR a no-no).

A decent firm should be able to get an IVA up and running in 4-6 weeks if you are concise, prompt and accurate will all the paperwork.

If you feel the IVA is right for you, Google 'Insolvency Practitioner Reviews'. Contrary to what some might have you believe, many don't charge you anything 'up-front'. In any event, their fees are paid out of your monthly IVA payment (and agreed by your creditors). Speak to 2-3 firms.

By all means seek advice from the ‘charity’ organisations, but don’t be afraid to approach a private firm if they want to refer you to one particular company anyway.

I have a cynical view of the so-called 'independent' charities (Stepchange, NDL etc…) - they are all sponsored/funded by the banks/credit companies, and I can't help feeling that was whose interests they were looking out for when they advised me. (Tried shoving a 15-20-year DMP down my throat).

BE AWARE: On the apparently rare occasion that they suggest an IVA, some charities (including some CAB offices) will likely refer your IVA to Grant Thornton anyway. (Just google 'Grant Thornton Complaints' or have a look at some of the other forum posts here to see why that may not be in your best interests).


Saying all that, some private firms will ‘over-sell’ IVA’s to people for whom it may not be the best solution. So be careful to differentiate the sound advice from the sales-patter.</SPAN>

Good luck.

Find_The_Real

Hello Sars

I would certainly recommend speaking to a couple of IP firms along with the charities as it is more specialist when dealing with a self-employed IVA.

The question I would have from the start of this is being a sole trader do you think your OH will be able to sustain payments for at least 5 years.

Also if you have had a mortgage with NRAM at any point they will generally insist on a 6 year IVA.

Most decent firms will not charge up front for any advice, the whole proposal stage normally takes 4-8 weeks and some firms will take the first months payment just before the creditors meeting and from there on it is a monthly payment (it is normally just the IP that sends it out on a 3 month basis).

I think with the fact you are going BR and your OH is a sole trader it would really be a good idea to write down all the questions you want to ask and then speak to a couple of good IP's. If you google 'IVA company reviews' you will see a website that has both reviews and a forum attached that will give you a very good idea of whom to speak to.

I am sure others will also have some great advice but I found actually speaking to a few IP's gave me a greater understanding as I was able to give the whole picture. You have certainly done the best thing in researching everything first before going ahead.

Good luck with it all.

Sars49

Well what a quick response, this board is so helpful, thanks folks.

Our situation is as follows:

I have a 5 figure unsecured debt + a neg; equity NRAM mortgage, self repo'd 2 months ago & now rent (landlord knows deal & is fine) court date next week for repo' but do not have to attend as court said I do not have to cos' I am not contesting, I know, sign NOTHING.

My OH is a sole trader, not a ltd company & that will never change. He also has a 5 figure unsecured debt, over 70k, name not on the mortgage. For 3 years we never missed a payment £3-4,000 per month + living, so even though OH business has been wound down since July, he has an opportunity to re-build with a friend, still sole traders, so paying an IVA of say £3-400 a month would not be a hardship & correct me if I'm wrong, but an IVA would not be as restrictive for him & the business.

Hope that helps & thanks again.

UpToMyNeckInIt

I think BR on balance is more restrictive than an IVA generally.

Aside from the prohibition of being a 'company director' when BR, I am not aware of any other restrictions when it comes to business. Best seek a couple of expert opinions to be sure.

Let us know how you get on.