www.iva.co.uk

I am just pulling together my IVA proposal and would like to understand the level of contribution which I have to make available. Currently I am proposing to repay approximately 28p in the pound - is this too low? Also can you confirm when the direct debit for the IVA needs to be set up. I am finding this all very scarey and hate the creditors calling me all of the time so any help would be welcomed. [:)]

the DD can be agreed with your IP bearing in mind pay days etc

Your IP will not propose a dividend to the creditors that they beieve will not be acceptable, you need to offer what you can reasonabley afford to pay, otherwise the IVA maybe doomed to fail from the start.

Its difficult to manage the hastle from creditors, but that will soon pass if you IVA is succesful.

Hi there and welcome to the forum

Your IVA offer will be based upon the level of disposable income you have available, after taking account of your total household income and deducting all necessary expenditure.

I assume that you have an IP already acting for you, so perhaps you need to spend a little more time with them discussing the mechanics of how they intend to put this in front of your creditors, and also in terms of the timing of first payments etc.

Best of luck with the proposal and let us know how you get on.

Its all about affordability and your IP putting the best offer forward.Ip's do this for a living so dont tend to propose things that wont work,as long as you have made sure you are happy with your INCOME AND EXPENDITURE. This is in bold because one of the major problems with IVA's is people just signing them without fully understanding what they mean. Be sure that you can afford to live on what you have put down onpaper and you will find things run smoother.

Good luck

Paul

Hi Hammons
The guys are correct. The level of contribution (in your case 28p in the pound) will have being calculated on what you can reasonably afford to pay - through a thorough examination of your income, expenditure and level of debt. Once your IP has drafted your proposal, your creditors will understand why the contribution is set at that rate.
One of the fundamental things you must always remember and I think all of the guys here will agree with is an IVA proposal will not be put forward to creditors to vote on if the Insolvency Practitioner responsible did not feel it had the best possible chance of passing.
With regards the Direct Debit - it is best to discuss this with your IP. They will advise when it needs to be set up.

Hope this helps.

Thanks

The dividend of 28p has to higher than what would be currently available in bankruptcy but there is also scope for improvement on that return. Annual reviews, bonuses, overtime and equity releases all enhance the dividend on offer making IVAs more attractive to creditors. Good luck from me too with your proposal.

Hi

I know what you mean about is the dividend too low, mine was accepted in April and Im paying 17p/£.

Good luck with your proposal

Helen

a standing order is better than a direct debit,you have full control of a standing order.

I'd also start living straightaway on what you expect your budget to be. It will test whether it is going to work in practice. We started the IVA process in January this year and had our IVA approved in April. However we started on our new budget from December onwards when we realised we had to do something so we knew whether we could cope and the budget was fair.

Also I pay my IVA payments by standing order rather than DD and I agree it's safer as you control what is being paid. Although the direct debit system offers a guarantee, if there's a mistake and your nominee takes took much by accident you could end up in a situation where you miss paying a priority creditor.