40,000 iva

bakersue

It is my very first time posting so apologies if I am not doing this correctly, but does anyone else have recent experience of applying for an IVA of approx £40,000 ? I am terrified, any advice, experiences at all would be very much appreciated. What kind of repayment amount is generally acceptable, and are StepChange the best people to go through?
Thank You x

DFS

Hi.
I used Stepchange last year and they were my saviours. They helped me every step of the way. I was 36k in debt to 8 creditors but as the main creditor I owed to was a small loan company, they rejected their offer of me paying back £86 a month but stepchange dealt with it and we accepted a proposal of £154 a month for 6 years.

A small price to pay, for a stress-free future.

I recommend them highly.

sourcrates

bakersue wrote: »

It is my very first time posting so apologies if I am not doing this correctly, but does anyone else have recent experience of applying for an IVA of approx £40,000 ? I am terrified, any advice, experiences at all would be very much appreciated. What kind of repayment amount is generally acceptable, and are StepChange the best people to go through?
Thank You x

Stepchange can recommend an IP to use for an IVA yes.

Your monthly payment will depend on your disposable income, the creditors will be looking for the maximum return possible (don`t believe what you read about writing off a large % of your debt) its possible some of your debt will be written off, but again, it all depends on what you can pay towards the debts.

You will require 75% (by value of debt) of your creditors, to agree to it, in order for it to be passed.

Cant really say anymore unless you produce your budget.

National_Debtline

Hi bakersue and welcome to MSE,


Repayments in an IVA are dependent on several factors, including your SOA and any assets you may have - specifically a property. If you are a homeowner then you can be asked to take out a secured loan in the 4th or 5th year of the IVA known as an equity release clause. The idea is that this will secured loan is taken out to end the IVA early, however, not many people qualify for a secured loan in this situation because of the damage to your credit file, and that is why the IVA is typically extended. But the equity release clause can play a big part in calculating your repayments.


Sourcrates is right that 75% of the value of the debt will need to agree to the proposal for it to go ahead. It is quite a restrictive option and is subject to a 12 month review. Just be aware that if your circumstances improve the payments may increase, but they are unlikely to decrease (much if at all) even if things get worse. If you cannot maintain the payments the IVA may fail and there is a risk you can be declared bankrupt, which can risk your assets. Best of luck,


Laura
@natdebtline

foxy-stoat

bakersue wrote: »

It is my very first time posting so apologies if I am not doing this correctly, but does anyone else have recent experience of applying for an IVA of approx £40,000 ? I am terrified, any advice, experiences at all would be very much appreciated. What kind of repayment amount is generally acceptable, and are StepChange the best people to go through?
Thank You x

Not knowing your full income/outgoings no-one is going to be able to let you repayment amounts. As long as you can pay back 25% in total you have a good chance.

Make sure your living expenses suit your income with a little bit to spare and do you own your own property or just renting?