Creditors

nicbra

Not sure if I am in the right place but can anyone tell me if 49p in the £ is a reasonable offer in an IVA? Is a creditor likely to accept this?
Any help would be greatly received, thanks xx

debt_doctor

Yep I think that has a good chance of success, ive seen IVAs go through at 25p in the £. Essentially the creditors are looking to be better off than if you were declared bankrupt.

Have to say I think most IVAs are misold / inappropriate. Do you own your own home ? Have you taken full advice from one of the debt charities ??

DD

nicbra

Thanks DD,

No I do not own my home! I am receiving help with Payplan with an IVA, if it gets refused I am going to consider bankruptcy.

tigerfeet2006

Who are you taking your IVA out with? Is it a fee paying company?

debt_doctor

Hi,
Whats your reason for choosing an IVA if your not a homeowner ?

Would BR be a better, cheaper option, or do you have some other reason / objection to bankruptcy ?

Certainly if you DO choose an IVA then you ve gone to the right place ( payplan ).

nicbra

I have seriously considered bankruptcy but would like to pay as much of my debt back as I can, when I spoke to Payplan and cccs they both gave me lots of info about dmp, iva and bankruptcy. I am not really interested in dmp as I do not like the uncertainty of it, i found the decision between IVA and BR very diffiult, so thought I would try IVA route first (mainly becuase of pride, silly I know) and if that gets refused will go BR. Me and husband have no assets, mid twentys and owe around 35k on unsecured debt, in your opinion would BR be a better option for us then?

debt_doctor

They are both options for you, I think you have to ask yourself some questions.
1) How bothered, in the big scheme of things am I / we about people finding out that we are bankrupt ? ( incidentely, people think IVA's are a 'secret' but details of an IVA are published on the insolvency service website, which anyone can view)

2) Am I excluded from BR because of my job,or the type of debts that I have ?

3) What about the costs ? I dont know how much you are thinking of contributing to your IVA, im going to assume £200 per month. ( including fee's )

Now, the surplus to go in to an IVA from income per month may well be the same as income considered in an IPA under BR, so....

IVA 60 months @ £200 = £ 12,000.00

Bankruptcy fee's ( 2 people ) £ 970.00
IPA 36 months @ £100 = £3,600.00
Total £4,570.00

IVA cost £12,000 - bankruptcy cost£ 4,570 = an IVA is £7,430 mor expensive and takes 2 years longer to deal with.

I have to say i dont do 'morals' when it comes to people in debt. I see every working day what misery the debt collection companies, creditors etc heap on to people, and how ill it makes decent people who have usually just fallen on hard times. I have no sympathy with creditors, they are in a risk business that makes them huge profits, and sometimes they get their fingers burnt - WELL TOUGH !!

Best wishes, hope it helps

DD

PLEASE SEE POST BELOW, TA

debt_doctor

Sorry just noted that you have £35 k debt and offering 50p in the £ return, so....

35K / 2 = £17, 500 ( 50p in the £ )

£17,500 ( not allowing for fee's ) / 60 months = £ 291.00 pm.

so IVA cost £ 17,500 ( plus fee's )

BR cost fee's £ 970.00
IPA 36 MTHS @ ( 60% ) £6264.00 ( thats 60% of your spare income of £ 291.00 )

Total BR cost £ 7234.00

Making an IVA more than £ 10,000 more expensive.

up to you !

DD

backontheup

If I were you, I would seriously consider bankruptcy. IVA is only useful IMHO if you have to protect property.

Both affect your credit rating for the same length of time and as DD has pointed out, BR is much less expensive.

In your shoes, I wouldnt be thinking twice about this.

nicbra

Thanks for all the advice,

On my IVA proposal, it stated that our joint creditor would receive 49p in the £, so am just presuming all the other creditors receive the same. We only have one joint creditor, are setting up seperate IVAs, OH will be £190 a month, and mine will be £180 a month, so will be paying £370 a month in total to IVA.

I am so confused , I just dont know whether to do IVA od BR, so thought I would try IVA first and then if that gets refusd, it would look better if I have to petition for BR, as if I had already tried to pay the debts back.

I know ultimately I am the one that needs to decide, but I am finding it so difficult.

debt_doctor

nicbra wrote: »

Thanks for all the advice,

On my IVA proposal, it stated that our joint creditor would receive 49p in the £, so am just presuming all the other creditors receive the same. We only have one joint creditor, are setting up seperate IVAs, OH will be £190 a month, and mine will be £180 a month, so will be paying £370 a month in total to IVA.

I am so confused , I just dont know whether to do IVA od BR, so thought I would try IVA first and then if that gets refusd, it would look better if I have to petition for BR, as if I had already tried to pay the debts back.

I know ultimately I am the one that needs to decide, but I am finding it so difficult.

look better for who, Nic ????????

I think you should worry about yourselves, your young and you can move on from this. My worry for your " dip my toe in the water ' plan for the IVA is that, say, you go through the IVA for say 2 years, costing you both £ 8,880.00, then find you cant cope with the repayments, go bankrupt and then have to go through a further 3 years of an IPA - and all to protect no property, but some pride.:eek:

There is one thing for certain, your creditors will not be chatting to each other saying " arnt they good people trying to pay us as much as they can" - they dont know you, they dont care about you, and if you owned your own home they would seriously consider making you homeless.

Sorry im in danger of getting in to a rant !!

Enjoy your Sunday, and have a long think

DD