am I a candidate for an IVA?

[adski]

can you tell me if i am a candidtae for an IVA.
We own our house, but with no equity to get a loan to pay off crippling debts.
My debt is £15500 from 6 creditors,
The household monthly income is £1500,
Our monthly expenses excluding debts £1250,
Therefore monthly desposable income is £250.

[MelanieGiles]

There are some specialist firms of insolvency practitioners who will take on smaller cases of debts less than £20,000.

In theory there is no apparant reason why you could not propose an IVA, however over the next five years you will contribute an aggregate sum of £15,000 which almost equates to the sum you owe (excluding ongoing interest).

If you could persuade your creditors not to charge any more interest, they could be paid off in full in a similar timescale to the IVA, and not have to bear the costs of supervision. Creditors will often reject proposals presented which provide this scenario.

My gut feeling is that you should try and negotiate with your creditors further to accept ongoing pro-rata payments, rather than enter into formal insolvency proceedings.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[freelili]

Hi
It costs a lot in fees to do an IVA, like Melanie said and your debt is really low in comparision. I would try a DMP with payplan or a similar company. Having someone pull it all together and liase with the creditors for you. The creditors then see your committment and have a hard copy of your finacial affairs in black and white. Be realistic with your expenditure though. I am in a DMP with them on a temporary basis and its really helped me.

Good luck

LILY

[adski]

thankyou for your help.
I have just worked out that over 60 months it would cost me £240 a month to pay off my debts - if no interest was charged, but one of my creditors is for my car hp which i have only 18 months left to go on a 5 year hp. i have a settlemet figure of £2500 for the car, would they let me spread the remaining ammount over the next 60 months or would they just want the car back? if i went down the iva route i know they would not be able to do this, am i right?
also how do i go about contacting the creditors on my own and how do i put forward my propostion about them freezing the interest and me paying it of in the next 5 years, how likely are they to go for this?
thankyou for your help.

[scaredkez]

as far as i am aware HP is classed as secured borrowing so you wouldn't be including the hp in your iva and so would continue paying that seperate to your iva, i am sure the experts will clarify on this, also your debts are quite low so an IVA may not be the best solution.
kerri

[MelanieGiles]

Hi adksi

Kerri is correct by saying that you need to continue to pay off the HP under its contractual terms. So you will need to include this as an expenditure item, and recalculate your disposable income. Once the HP is repaid in 18 months time, you can then increase your payment accordingly.

I have a feeling that by making this adjustment, you will no longer be able to repay your creditors within a realistic timescale, so you may wish to revisit looking at either a Debt Management Programme or bankruptcy proceedings.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[123debtsolutions]

Im not plugging here but we like many companies can help with debts over £12k.
You really do need to have a full assessment carried out in order for an advisor to qualify you properly for an IVA or other financial solution such as IPP.
I would recommend getting a few eligibility assessments done and I would certainly choose a company from the forum.

Best of Luck

Lee
www.123debtsolutions.co.uk

[neverending]

Adski
Under a HP agreement you can just "hand" the car back if you have paid more than 50% of the total[car cost,interest charges and deposit]and walk away from the balance.