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markss
Starting Member
United Kingdom
13 Posts |
 Posted - 06 May 2010 : 23:10:29
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| Hi I am in a iva employed with a net pay of £1,800 my IVA has risen from £300 to £600 over the last 2 years. I have been advised that in a BR only 50% of your surplus is taken for a ipa as opposed to %100 in a IVA surplus. I am struggling with the new increase are BR more generous with allowances than a IVA? |
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debtinfo
forum expert
2826 Posts |
Posted - 06 May 2010 : 23:24:39
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In general and this is very general,
The amounts allowed in bankruptcy are more generous
Some things are not allowed at all though in bankruptcy, such as tobaco and an emergency fund.
In bankruptcy, if your surplus is less than £100 you dont pay anything, If it is more than £100 then between 50 and 70% is taken on a sliding scale between surplus's of £100 to £500. Surplus of more than £500 is a max of 70% regardless of the sive of the surplus.
does that make sense |
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debtinfo
forum expert
2826 Posts |
Posted - 06 May 2010 : 23:26:17
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| just to add, that as a general rule the payment is less in bankruptcy than in an IVA, the period is a max of 3 years and it can be renegotiated at anytime if your circumstances change |
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markss
Starting Member
United Kingdom
13 Posts |
Posted - 07 May 2010 : 08:06:25
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| Thanks for the info will the fact i was in a IVA for 2 years and made contributions be looked upon positively? |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 08 May 2010 : 10:14:47
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Yes, it will be looked upon favourably as you have shown that you have tried to resolve your debt issues.
If you have been in an IVA for 2 yrs then you are almost half way through and it would be a shame to have to end the IVA after putting so much effort into it. Speak to your IP and see if the repayments can be reduced. Explain to them the problems you are having and mention that you may be forced to declare BR if the payments can't be reduced.
It is in the creditors interest to keep the IVA going as they won't get anywhere near as much of their money back if you declare BR. Having said that not all creditors act logically but it is worth trying to get the repayments reduced before having to let the IVA fail and then declaring BR. |
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markss
Starting Member
United Kingdom
13 Posts |
Posted - 08 May 2010 : 11:53:19
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| Thank you I think I under extimated my food / and other things plus personal petrol allowance. What is the allowance on these in IVA/br. Thanks |
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debtinfo
forum expert
2826 Posts |
Posted - 08 May 2010 : 11:55:56
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| There is no formal allowance in bankruptcy, there are guidelines but the general rule is that if you can prove that it is essential then it will be allowed |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 08 May 2010 : 12:32:17
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I have always found it odd that the IVA payments are generally more stringent and creditors ( via TIX etc ) push IVA applicants to the limit often encouraging them to review the bankruptcy option.
It is usual that people would like to start the IVA option from a position of "wanting to repay some or all of what was borrowed".However after contiual bombardment from creditors before the IVA and then during the voting it is not suprising that some peoples view changes.
If creditors were a little more realistic and perhaps less aggressive about what was paid back ( some pain but no crucifiction ) then I suspect that the number of IVA's proposed and successfully completed would actually increase.
Some IVA companies have a great reputation with clients and creditors and generally ( in my experience) have more influence in achieving a livable IVA.
People looking to start an IVA don't understand that the choice of Insolvence Practitioner is probably the most important of all. You can't do a lot better than to speak to Melanie one of the forum experts.
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
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markss
Starting Member
United Kingdom
13 Posts |
Posted - 08 May 2010 : 14:37:48
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| Yes I feel that has happened to me I was happy making contributions of £300 and my salary increased from £1200 net to £1,800 resulting in a increase now to £607. Which I am struggling with. BR will surely give creditors (14) a poorer return. I have no assetts etc. |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 09 May 2010 : 11:11:43
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If Br is the right solution then you are likely to need to pay an IPA for 3 years but at least it can go up as well as down.
Additionally the allowable expenses are often more reasonable than in an IVA so think carefully of all your costs and expenses before filling in the form
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
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br versus IVA surplus
