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hi sorry this is the 3rd post with same info as i cant seem to get it to uplaod to the normal forum.. think computer skills are not working today!!! one more go and i give in....

Hi,

I am approximately just below 49k in debt. I have just had to move out and rent somewhere new.
I have a monthly income of 1552 as have just had a pay rise. I worked out a monthly budget of 1032 which leaves a disposable income of approx 500. Will I be able to get an IVA with that?

Also although I am servicing all my bills at the moment after i move out in a couple of weeks time i wont be able to so am going to have to miss some payments. I would try and pay the full amount on the bills but i have to get some dental work done desperatly and i also need to buy a sofa bed as i dont have any furniture for my flat.

so my second question - is it totally unreasonable to offer what money i have left over as a token payment to the creditors i dont pay AFTER i have bought my sofa bed and had my dental work done or should i try and pay them the full amounts and not get the sofa bed or my dental work?
i dont want to be seem to be wasting my money and being frivolous before possibly starting an iva.

thanks for any advice

Yes, you can do an IVA on that, paying £500 per month for 5 years will result in creditors receiving around half of what they are owed after costs, which is in the acceptance zone. Making token payments are really just a waste of money.

If you choose to go ahead with an IVA your IP will probably tell you to stop making payments to your creditors for the 6-8 weeks or so that it will take to put your proposal together, send the papers out and wait for the creditors' meeting and this doesn't really matter, if creditors know you are going for an IVA they know how it works and will allow your IP this time to get it prepared.

So yes, if you go for an IVA then you can buy your sofa bed and get the dental work done, but pay for these out of cash, not by taking on more debt.

When I am acting for new clients, I always assess whether there is an immediate need for any changes of circumstances (such as relocation) or essential personal expenditure. This can usually be paid for in the couple of months it may take to finalise the IVA proposals, or perhaps covered by lower IVA payments in the first few months.

Clearly the dental work you require (so long as it is not cosmetic dentistry) is pretty important, and should be prioritised. Try and find a dentist who is still registered with the NHS, as this will save a considerable amount of money. With regard to new furniture, you can get some fantastic deals on e-bay and also local second hand shops.

If you have been sensible with your spending prior to the proposal of an IVA, and that can be justified, then it is unlikely to cause any difficulties for you or your IP, but as Philip has already said you should not use any further credit.