Realistic chance of an IVA?

[Julian]

Hi, just going through my I and E again. I have total unsecured debts of 31,000 to 9 creditirs, HSBC( £10,000) Egg(4300) Halifax(£7800) MBNA (£4900) Tesco (£2700) Style(£971) Capital One (£475). It looks that my available income to pay into IVA will be £368 per month, I also get approximately £3000 per annum in bonus and non guaranteed overtime/extra work, so assuming the 50% rule, could pay about £1500 into the IVA per annum. Does this look like a realistic option to any of you. Currently my IP is collating all details etc and I am waiting for the proposal to be drawn up, but can't help being anxious about all this. How much would this equate to in meetinf the pence in the pound formula, as my maths is not the best. I had heard that HSBC seemed to go for a 40p in the £ return minimum.

[joh71262]

Hi Julian and welcome

Your debts are about the same as mine were (I was with Debtmatters before they sold their "book").

I have ended up paying 27p in the pound (plus their fees on top) which equates to £250 a month. I don't have any overtime but I do get a small bonus - it's not a fixed amount so I pay half to the IVA. Personally, I wouldn't say that the bonus was fixed - mention that you get one but not that it is £3k. I've found that sometimes they don't read the entire scenario properly (I was not impressed with my IP in the least).

It really does depend on your outgoings though.

I found that when First Direct closed my account (and check with your current bank whether they accept people with IVA's) because I had a "one" type account, the repayments went up drastically. If you are with one of the big lenders, check out the current account situation ASAP. FD gave me a month to open another account and to be honest, if it hadn't been for this site and the wonderful people here, I wouldn't have had a clue where to turn. Sure, my IP gave me the name of some people that would help - what the stupid woman that gave me the advice FAILED to mention was that they would charge me £50 for the privilege.

Sorry - I've kind of rambled !!!

BTW - is that £1500 ON TOP of what you propose for a monthly payment ?

[Julian]

Hi thanks for reply, the £1500(potential) would be an additional annual payment on top of the monthly payments.So roughly over the proposed term of the iva would be around £7500 in additional payments.Again this is overtime and bonus, not guaranteed income.
I have a basic account with Lloyds TSB which I opened prior to going on a DMP. Probably forgot to mention that I am trying a DMP since December and moving on to applying to go into an IVA.

On the DMP, all creditors have been OK, with the exception of HSBC,pretty aggressive. Halifax still charging interest after saying they would freeze same.

[joh71262]

Have you got anything in writing from the Halifax ? If so, I'd put something in writing and then follow up with a visit to their office asking what's going on.

[emma_t]

Hi Julian

Anxiety is a very natural feeling when going through the iva procedure and you find yourself thinking 'what if...' all the time.
Has your IP not given any advice regarding the dividend you will be paying to creditors? This would depend on fees and I am in no way an expert , so would not advise - but I am sure someone will be along to help soon.
I would question whether any IP would waste time even draughting a proposal they did not think had a good chance of acceptance, so would take some confidence from that.

Good luck
Emma x

[Julian]

Thanks for all the input, am still waiting details from IP, taking a time but always vailable when I call. Guess there is a lot of pre work which needs to be done. I am using Tenon debt solutions, anyone had experience with them?