www.iva.co.uk

hi

65k debt between me and hubby. ip says looking at monthly repayments of £400. Plus because hub is self employed he has to pay all tax and ni contributions into iva. Totalling all together £759. He has only been trading since last oct, his tax etc would probably minimal. So what they are saying when he does his tax assessment they will keep anything left over. May as well do a DMP if paying that amount. What do you think? What happen when his income drops because of bad weather, bank holidays, christmas holidays. He would have to be working 6 days a week, 52 weeks a year,to make that work.

He will only need to pay tax and NI contributions into the IVA until the end of this fiscal year - ie until 5 April 2010. Thereafter he pays his taxes directly to HMRC.

If a DMP is run properly, the amounts paid into it ought to be the same as the IVA - ie based upon his true disposable income.

When dealing with self-employed clients, most good IPs would build is some form of sensitivity to cover bad weather and other downtime. No one would expect your husband to work 6 days a week for every day of the year. The would be, to be frank, quite ridiculous!

Which IP firm is he taking advice from at the moment?

In any event the figures quoted by you need re-examination.

You need to have a chat with another IP and give him/her details of all your personal and financial circumstances and particulars and that of your hubby and his new business. Melanie is right and a "sensitivity analysis" of your husband's projections needs to be examined.

Visit www.iva.com for reviews on firms and practitioners and select one or two to have a chat with.

They will give you the appropriate advice and it is free.

Let us know how you get on.