Iva Costs - Are They Right ??

SAGWALA_3

Hi Guys,
Am just about to enter an agreed IVA for £300 per month for 60 months then £12500 lump sum from remortgage, Debts circa 48K. Does that sound OK and are the Insolvency Practitioners costs to administrate the IVA at £1200 + vat per annum normal or is this excessive. This is excluding the £1750 + vat fee they get at the setup. IVA Practitioner - Debt LIfeboat. Any help greatly appreciated.
Thanks

poorandindenial

Hi there

This link is for Martin's IVA guide. As well as all the pros and cons of IVAs there is an indication of fees too. Well worth reading the whole doc before you commit to an IVA.

What has made you choose an IVA over a DMP or other means of repayment??

RAS

if you want and IVA, then it is probably better to talk to CCCS, as I suspect their fees are lower.

I would certainly suggest that you contact the debt charities and get their advice before undertaking an IVA See here for contact details http://www.moneysavingexpert.com/loans/debt-help-plan#help

SAGWALA_3

Hi, I do not know any alternatives what is a DMP?

fermi

DMP = Debt Management Plan

It would be very worth your while to contact one of the free and impartial debt advice agencies like CCCS or National Debtline before you make any decision.

See: Non-profit Debt Counsellors' List

Unlike "debt lifeboat" they are not trying to "sell" you a solution they make huge amounts of cash from. It would make sense to have a word with them first so that you can be sure an IVA is the right way to go.

As suggested by poorandindenial, have a good read though Martin's IVA Guide as well.

RAS

Debt management Plan

You have a budget that covers your secured debt and living costs.

Anything left over is used to pay off your creditors over a period of time. They get less each month but get it eventually. Most will stop schariging interest, so your debt comes down quicker. All the debt charities can help set one up although a few people run their own.

poorandindenial

Please see the details I have posted on your other thread: http://forums.moneysavingexpert.com/showthread.html?t=865583

A DMP is an agreement that can be set up by you, or another organisation acting on your behalf, that will allow you to make arrangements with creditors to repay them less each month than you currently have to under minimum payments.

You work out your income and expenditure and then what you have left is given to your creditors split in the same proportions as the spread of your debt. Sometimes it is possible to get interest frozen on the debts (but not always)

You should never pay for a DMP to be set up, I have posted the free to use debt advisors list on your other thread, CCCS has an online tool that can help you to get an ideaof your options.


EDIT - Flipping heck I type slow compared to fermi and RAS - lol (I blame it on my nails!)

10past6

SAGWALA wrote: »

Hi, I do not know any alternatives what is a DMP?

Hi

Welcome to the forums, you'll find all the information, and advice you need from the members on here.
A DMP is a a Debt Management Plan

I would urge you to do as much research as possible into what category you fall into re your debts

a) DMP

b) IVA

c) Bankruptcy.

10past6

poorandindenial wrote: »

EDIT - Flipping heck I type slow compared to fermi and RAS - lol

So do I, I'll never reach their post count

RAS

Guys

TYPE - it is two fingers!

And half the time, I block, copy and edit (cheating I know but does the job).

And believe me you will get to the post count.