www.iva.co.uk

Hello. Please help if possible. Tried for an IVA approx 4 years ago which was rejected. Have approx 80,000 debt. Since the failure
have been paying a debt management plan for
£515 per month. However, the company take approx £100 in charges & the rest is paid on
debts.

The debts do not seem to be shrinking
& on looking realistically it is going to take about 16 years to clear. Bankruptcy is not an option as some of the debts joint & we are despaerate to keep our house. I am looking to go\ into IVA again but the formality of it all frightens me & I worry I wont be able to live on whats left. Also
the overtime clause worries me aswell.

Hi Mark and welcome to the forum

Why was your IVA originally denied> You seem like a good case to me at the moment, and it would probably be sensible to discuss this with an Insolvency Practitioner at the earliest opportunity.

Which DMP company are you with?

An IVA is not something to be afraid of, it is the medium to enable you to make a realistic offer of settlement to your creditors - over a realistic timescale to suit both sides. A good IP will develop a working relationship with you which is there to assist and not to work against you throughout the arrangement. And you are allowed to retain 10% of your basis wage from overtime earned before the 50/50 split is applied these days.

Hi mark and welcome.
Just because an IVA was rejected before, doesnt mean it will be next time. You have been in a DMP proving that you are trying to repay your debts and im sure that would be looked upon favourably.

The overtime clause is beneficial to you as well as your creditors as it allows you to keep 50% which will help you month by month and also give a better return to your creditors.

Have a chat to an Insolvency Practitioner again and see how the land lies.

I would strongly recomend Melanie Giles or Ian Millington who post on this forum. You can find their details on the experts page.

Good luck and keep posting xxx

Hi Mark,
Just by reading your brief post, I would not like to be paying that sort of money for 16 years!

If I were you I would start afresh. Different IP (Melanie Giles highly recommended), and try and get it finished with in 5-6 years, thats got to be better surely?
Why does the overtime scare you?

I need to oil my typing finger, it seems to be on a go-slow tonight.

Hello there Mark and welcome [:)] There is great comfort and security in an IVA, you know where you are [:)] I will give you this advice. Talk to a pro. I can recommend Melanie who replied to you earlier. It will do no harm. The overtime clause works like this. Say you earned £1500 a month net. You work overtime and get £200 net. You are allowed to keep 10% x 1500 = £150. The remaining £50 is split 50/50 with your creditors. So thats £25 to them and £25 to you. So of the £200 you earned you keep £175!! Not to bad! Phone/email Melanie Giles tomorrow you cannot go wrong. Don't worry it will all work out [:)]

Really? I always worked it out that £200 net overtime would be £20 to you then £180 split 50/50 so thats £90 to the creditor! Just goes to show eh?

Had me a little confused too.

yeah me too....which one is right?

Maxdebt is right.

It is the first option, as Melanie stated earlier it is 10% of your base wage which you are allowed to keep. ie, 10% of your net earnings. The example earlier is spot on. On the basis of a £1500 net income, if you earn £200 in overtime then you keep the 10% (£150) and the remaining £50 is split £25 each, so you would indeed keep £175 of the £200 earned. Not really something to get worked up about. It makes working overtime still worthwhile.

J.

hello mark and wlelcome to the forum....its so worth while just reading....i learn something all the time...i wouldnt have known how to do the overtime split...very clever girlies to work it out....keep posting

Hi there Mark. Sorry to read that your IVA was declined a few years ago. I take my hat of to you to have sorted out a DMP, but that will be hanging over your head for years and years and I know it wouldn't be the right choice for me. We have recently embarked on our IVA process and were accepted at the end of July. We are with Melanie and her team and I must say, they really have been fantastic. If I were you, I would give them a ring today and have a chat - there really isn't anything to worry about and they put you at ease, are completely non-judgemental and give you honest professional advice in a clear and concise way. Being in an IVA isn't easy but it's not designed to be, but I will say, as far as we are concerned, our allowances are fair, yes we really have had to tighten our belts, but that is what we needed. We are learning to budget much better and do you know what - at the moment its really not too bad. We have recently had a washing machine disaster, but we got over it by buying second hand and being sensible, so give it a go Mark. I understand your apprehension but I don't think it will be as bad as you are expecting, lets face it, you are already budgeting for your DMP. Good luck hun. Kazzy x

I'm not a girlie but i will admit to being a Big Brother fan. My mates seem to think that makes me a bit of a girl [:D]

Just to add - I deliberated on this forum for weeks about which way to go and then finally contacted companies. Most people will tell you to contact a couple so you can see how you feel about them and then decide after some initial advice. I spoke to too companies and chose Melanie's team. The best thing ever (the best thing since sliced bread). I am only one month in but it really is the best thing I ever did, the budget is reasonable and I have got rid of all the stress (which was making me ill) of credit card bills coming and not being able to pay them without drawing cash of another one. Companies are still phoning me as the IVA hasn't filtered through properly yet but I just stop them after the first sentence now and politely tell them the situation. Just to let you all know that I am feeling really well and stress free. My Hubbie is not too good but we are off for a couple of weeks as from tomorrow so nice drinks in the garden on the way.