www.iva.co.uk

Hi All,

I am in the process of putting a F&F together and I am struggling to see how my IP has calculated my estimated dividend of 40p when I make it 57p if I complete (I have never increased payments).

I am still significantly over the 40p if I add my ip fees. So the only thing left is interest - can anyone tell me if estimate interest is included in my dividend?

Thanks

Have you taken account for all fees, i.e. nominees fee and monthly supervision?

Yes, the nominees fees being the first four payments and supervisor fees at 15% of all realisations (even though I was charged 10% by my first IP charged 10% before it was transferred to GT). I have even included unreclaimable VAT!

My total debts were £33,674 against which if completed I would pay 72 x £265 = £19,080 (57p). If I add supervisors fees at £2,862, nominee fee of £902.00 and vat at £650 (17.5% as average) I get a total of £38,088 on which the dividend would still be 50p?

Sorry, Im being stupid arent I. I need to take the whole fees from the payments and then calculate my div. Ignore me!

Hoodex - Vat is at 20% now

Have a look at your proposal - it should break all the fees down.

Honestly - unless you are planning to offer 100% as f+f settlement - would not get to hung up on the IP fees.

At the start of your IVA the creditors would have had to agree these fees, meaning they are taking a smaller cut.

Hookdex wrote:

My total debts were £33,674 against which if completed I would pay 72 x £265 = £19,080 (57p). If I add supervisors fees at £2,862, nominee fee of £902.00 and vat at £650 (17.5% as average) I get a total of £38,088 on which the dividend would still be 50p?

You're doing it wrong! [:p]

Your payments total £19,080. Deduct all the fees:

£19,080 - £2,862 - £902 - £650 = £14,666

£14,666 / £33,674 x 100 = 44%

Hope that helps!

Edited to add - I see you've sussed that out, I had the message box open for ages in the background before posting (I'm at work), sorry!

Ginger - I did say as an average at 17.5% - my iva has been running since 2007.
I was just working though to see what the dividend was on my F&F compared to if I let it run.

Would a reduction to 34p per £ be laughed out? (I have been told I am being considered for redundancy)

Thanks for the help guys.

Where would the money be coming from?

I'd make an offer of the remaining payments, less the monthly fees for those months, and knock a bit off for luck.

From a select number of friends who will lend me £1k each and wait until I get a job sorted before I pay them back!

When you say "a bit", with the money I can borrow I am attempting to knock about £3k off and pay the other £3k.

Hookdex - you mentioned redundancy ! - is there likely to be a lump sum award ?

Reason why i ask - some of this might need to be incorparated into the IVA, and they might refuse to close this IVA if money is likely.

Oh really?! My redundancy will be c£1,500 - I assumed I would be left with this to tide me over until I got a new job? Its not exactly a buzzing economy for employment and I do need to eat!

You can be allowed to keep up to 6 months of your redundancy (based on your normal monthly income). It's usually up to you to discuss with your IP.

Thanks I understand. I am more than happy to argue that with my IP if necessary. It is just a shame I have to wait SIX WEEKS for a variation appointment with GT to even discuss it!