www.iva.co.uk

This is a question about the mechanics of an IVA.

I a person has 51K debt and lets say that the IP fees are 9K. What would be a good proportion of the 60K that an IVA could deliver to creditors?

I've read about minimum dividends on this forum. If the IVA expected total were £50k if this had beed reached at month 60 would the IVA end or would it continue until the full £60k had been collected?

Thanks in advance for your comments and advice.

If the IVA is engineered to run over five years, it will end at the five year point and does not need to run on until the debts are repaid in full.

Thanks Melanie,

Does the 72p in the pound figure include the fees or does it mean the creditors get 72 per pound and the IP fee is separate?

Does the acceptance of an IVA depend on the expected rate of return from the debtor or is it personal? If an IVA offers the creditors a high dividend then is it more likely to be accepted?

Nick

The dividend is worked out after IP fees have been taken into consideration, the level of which is entirely within the hands of your creditors.

Acceptance of the IVA is entirely based on whether your creditors feel that you are putting the best offer forward. Your chosen IP will help you to ensure this is demonstrated. The level of dividend payable is largely irrelevant.

Hi Nick,

It makes no difference how much the dividend is, it is down to the best offer you can make. Mine is 31p in the pound and was accepted with no problems.

I don't think the dividend includes the IP fees.

Thanks Ladies,

I hope and think I can repay all of my debt in 60 month. I know that in 2 years time (2 at school and no nursey fees) I will be able to pay considerably more than now. I just hope that the first 2 years will be manageable and my creditors don't try and squeeze me more than necessary.

If I got a bonus or a windfall and I didn't need to squirrel it away could I pay all of it into the IVA. Is that beneficial, does it look better for me in case there is a problem in the future?

Melanie, you will be my IP and I am doing absolutely everything I can to get my documents to Darryl as fast as I can.

Although I am not in an IVA yet, because of my experiences with a DMP, the changes I have already made to my finances and reading this forum I am already feeling so much better.

Nick

If you had a windfall, you would have to inform your IP, and unless you had an emergency, the vast majority of it would have to be paid across if it was above £500. If it meant that you could pay back your creditors 100p in the pound plus IP fees then your IVA would conclude early, otherwise it would carry on.

Mel will make sure your payments are affordable.

Just seeing if my countdown is working.....all going well so far but it's going to be very tight over Xmas!!!!

It's working! I think we all will be experiencing a tight Christmas!

Hi Nick - yes I do recognise you from your forum name, and will be glad to see all of those documents when you have gathered them up.

Hello Melanie,

Each day I read this forum I'm so glad I went with your company. There are some horror stories on here but I'm sure you'll keep me out of trouble.

I'll do my very best for you!

You picked a good team Nick - you'll be fine with Mel.