IVA calculator recommendation please?

elljay

Afternoon,

Can anyone recommend me an iva calculator that doesn't involve leaving a phone no for someone to call me back. At this stage I'm just thinking about options and don't want to get into discussions with a company but can't find a calculator that will just let me plug some figures in to give me a feel for the amount I might be talking about.

I appreciate the amount in the pound I repay might vary considerably but I could do with being able to calculate outgoings whatever the percentage to be repaid (20%, 25% etc) . Presumably it isn't as straightforward as eg 25% of debt divided by 60 = monthly repayments.

Thanks

UpToMyNeckInIt

If you want to get a rough idea of what your IVA repayment might be, you will have to work out your net income and expenditure. Whatever is left over is your IVA payment.

Regarding what is deemed 'reasonable' expenditure: All IPs that I’ve come across make reference to the Stepchange Budget Guidelines Report here.

https://docs.google.com/file/d/0B7LabJy69BP1M0gxeHQ1SDFiN1E/edit?pli=1

(Sorry, have not yet been able to get hold of the latest version that came out in October, but the figures only differ by a couple of quid here and there).

It is well worth a read, as it covers every form of expenditure, right the way down to allowances for hairdressing, kid's school dinners, meals at work, even hobbies etc.

If you are careful to correctly record your income and expenditure, your IVA payment should be set at quite an affordable level. I have come across people who underestimate their expenditure and subsequently have difficulty.

I also came across this 'Debt Wizard' website (you have to 'sign up' via email to download the pdf, but it's free, and thus far I have had no spam):

https://www.debtwizard.com/debt-help/debt-solutions/603-lenders-expenditure-guide

These figures claim to be based on the latest guidelines.

Good luck.

elljay

UpToMyNeckInIt wrote: »

If you want to get a rough idea of what your IVA repayment might be, you will have to work out your net income and expenditure. Whatever is left over is your IVA payment.

Thank you, I will follow up those links.

Looked at the other way round, let's say for example, my debt is around £60000. Assuming I'm assessed to repay 25p in the pound that comes to £15k. If I divide that by 60 monthly payments I might be looking at around £250 a month. Therefore I need to look at having around £250 surplus to pay into the IVA. Is that near enough?

It's hard for me to assess at the moment as I'm running a business (sole trader) at a huge loss and can't sell it due to the intransigence of the premises landlord. He is now threatening to make me bankrupt so will get nothing. An iva will at least mean he will get something so I want to suggest this to him as an alternative.

Thanks again.

UpToMyNeckInIt

...it doesn't really work like that.

I too run my own business, and your IP will typically use your most up to date books to calculate your income (salary + drawn dividends from taxable profit). then they will look at your outgoings, taking into account the budget guidelines.

If your income exceeds your outgoings, that will be your IVA payment.

There is another option: a 'Full and final' IVA. Dependant upon circumstances, you could liquidate your assets and offer that sum as a full and final settlement of your debt.

At the extreme end, I know of one very famous case where a property developer repaid 0.5p in the £ against a £25,000,000 debt using this method.

Based on my own experience, the charity organisations are not great at offering advice to the self employed, due to the inherently more complicated nature of finances. Give them a whirl by all means, but also speak to a couple of private sector IP's (google: 'insolvency practitioner reviews'). Nice little comparison site about 3 or 4 results down.

Look carefully at all your options from all perspectives, and then go from there.

You talk about selling up, but also dealing with a Landlord? Are you talking about a commercial premises? Just be a bit careful, if the majority of your debt is with a spiteful individual, you may struggle to get their 'vote' at the IVA creditor's meeting.

elljay

UpToMyNeckInIt wrote: »

I also came across this 'Debt Wizard' website (you have to 'sign up' via email to download the pdf, but it's free, and thus far I have had no spam):

https://www.debtwizard.com/debt-help/debt-solutions/603-lenders-expenditure-guide

These figures claim to be based on the latest guidelines.

Good luck.

Thank you so much, really helpful. Unfortunately when I try to go to the sign up page it comes up blank. Probably me as I'm rather in panic mode but if someone else could try, that would be good, thank you.

In terms of the landlord, yes it's business premises. He can be as awkward as he likes but to me the logical way forward for his back rent is to agree with the IVA. He will get nothing if he makes me bankrupt as he knows I have no assets. Can't really think of any alternative really.

UpToMyNeckInIt

That is not an unreasonable position on your part.

If you have no assets to protect, is going BR an option for you? (The answer may be 'no' if you want to carry on as a director of your company).

You might need a chat with your accountant and a good IP to discuss all options for the business, including winding down.

I know that is not what you want to consider, and obviously, I do not know your full circumstances, but if you cannot afford the rent, you need to ask yourself if your business is still viable, or if you would be better off starting afresh (easier said than done, I know).

Hope you work something out to get your finances back in the black.

elljay

Thank you for your advice. I am very keen indeed to get rid of the business, I've had to take other loans and have several jobs just to keep it ticking over and could do without it very well indeed! Unfortunately the landlord will not accept any of the prospective buyers as tenants (there's a couple of years left on the lease) so I've been stuck in limbo, trying to make it work but actually just shoring up the utilities etc bills by doing my best to cut personal spending to the bone and taking on extra work whenever I can.

Will get on the phone to several IVAs first thing tomorrow. Thanks for sounding so kind!

longtermplanner

Is the rent to your landlord a very large % of your total debts? If so he would effecitvely have a veto over any IVA

In my experience, commercial creditors (as opposed to consumer lenders) can be quite irrational about debts and unless he is very large he will probably never have met an IVA before.