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My husband owes £80000+ I owe £17000 none of this debt is joint. We are worried to enter into an IVA incase we are made bankrupt due to the amount we owe.. He is a Paramedic myself a civil servant... The repayments we would make are £557 increasing to £754 in may next year. Should we go ahead or continue with the DEBT MAN plan we have at the moment any help would be appreciated.. also very worried about the level of fees that may be taken so creditors won't receive enough.

My husband is due back pay from 2 years ago when his wages should have gone up, would he be expected to pay half of the amount back into the IVA , as it is not a bonus its what he should have received 2 years ago .

Hi nb and welcome to the forum

The advantages for you of an IVA over your current DMP are thatn your payments will cease in an IVA usually after five years, whereas in a DMP you will continue paying until the debts are repaid in full.

The Insolvency Practitioner's fees will be set by the creditors and will be deducted from the payments you make into the IVA.

If you enter into an IVA before your husband receives his back pay, then you can expect to pay over 50% to creditors on top of your ongoing contributions.

Only you can decided if it is sensible to try and IVA instead of the DMP. I can see definate advantages of the procedure for your husband, but you could be better off staying with the DMP - depending upon the allocation of your individual disposable incomes.

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

Thanks for the advice

How is the extra 50% paid to the creditors is it just paid into the Iva account that is set up if accepted?? or is it paid at the review meeting .

what are the chances of not being accepted for an Iva ??, and how would my husband enter an Iva and how would I stay in a DMP, I thought the IVA took my income into account??.. sorry to sound thick

It is usually better to pay over the 50% uplift at the time the monies are recieved - to avoid spending it and causing difficulties in the future.

I cannot predict your chances of success with an IVA - and your income is only taken into account to assess the percentage you ought to be contributing to the shared expenditure. Leaving you both hopefully with some surplus income to offer to creditors.

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