www.iva.co.uk

Hi there, I've just started down the IVA process and was hopeing someone could let me know there thoughts on whether my major creditors could be a problem.

I have about 61k of debt with First Direct being owed 22k through a loan (they are also my bank), Citibank are owed around 10k with intrest. I'm also hopeing to return a car which has a value of around 4k against a HP agreement of 7k.

The IVA company I'm dealing with are suggesting the total value of the debt is reduced from 61k down to 51k.

As I said, I'm just a bit nervous after reading some recent items about the number of IVAs that are being rejected.

Thanks

Crosby

Actually only about 20% of IVA'a are rejected. That's because IP's are experienced in knowing how to construct a proposal to give it a high chance of success taking in to account who your creditors are.

If an IP doesn't think that they can get an IVA through for you they will tell you, and that's the reason for the relatively high rate of success.

The important point for you to concentrate on is that you pay back within an IVA the maximum amount that you can REASONABLY afford. That means not being bounced in to payments that you cannot afford either by the creditors or an over enthusiastic IP.

Both First Direct and Citibank historically have been open to IVA proposals.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

Hi Croby and wecome
Your quote "The IVA company I'm dealing with are suggesting the total value of the debt is reduced from 61k down to 51k." What do you mean by that ?
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

andydavie wrote:

Hi Croby and wecome
Your quote "The IVA company I'm dealing with are suggesting the total value of the debt is reduced from 61k down to 51k." What do you mean by that ?
Regards

Andy Davie
IVA.co.uk Spokesperson

Thanks for the welcome.

From the discussion I had on the phone with the company they said they would be looking to get around 10k of the debt written off and bring my overall payments down to £800pm.

I've submitted all my paperwork this week and am now waiting for the draft proposal.

Hi
£800 per month
Did they discuss a DMP with you ?
Are you happy that £800 is your disposible income ?
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

A DMP was not discussed in any real detail. The £800 figure brings my payments down by about £700pm and would be my max figure I could really pay out.

Hi
I just can,t understand the bit about bringing your debts down by 10k.
If you pay £800 per month over 5 years you will be paying 48k,less IP fees of 8k[approx],so on debts of 61k you will repay 40k to creditors[65p dividend]in an IVA.
Under a DMP you could repay those debts in full in just over 6 years if you can get interest stopped.
Are you a home owner ?
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

The maths don't make sense here, as Andy has rightly pointed out.

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

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

And another matter to consider is you are not wiping out the debt you are paying what the IP deems you can afford to pay back so the creditors get something, but not all of the money owed.