This is a BR vs IVA question. I am trying to work out what the likely difference would be in terms of what I would pay each month under bankruptcy as opposed to an IVA. IVA companies will go over your expenses in advance and tell you what monthly payment they are prepared to ask creditors to accept. As I understand it, under BR an Official Receiver will calculate an Income Payment Order/Agreement for me to pay every month, but,assuming I have no assets, is the IPO likely to be more, less or about the same per month than I would be paying under an IVA (I realise the IPO is normally paid for 3 years and the IVA for 5 years)? Or is it impossible to say? As things stand I have an idea how much I would pay in an IVA but I don't know what I would pay under an IPO. Grateful for any advice, please.
An IVA will utilise all of your disposable income and depending upon which IVA company you use will have various tollerences for expenses. this will last usually for 5 years.
In Br and Income Payment Agreement will last for 3 years and will be for between 50 - 70% of your disposable income after appropriate living costs are paid.
However up to $99 ( sorry new keyboard!) an IPA does not come into force. So if you had 99 disposable then you would not pay into one, if you had 106 disposable then you would pay 50% - i.e. 53 per month.
the percentage increases from 50% up to 70% so there is always going to be disposable to cover life's surprises.
Paul Johns Assisted Bankruptcy Specialists Reviva UK
For a Free Impartial Review before taking the leap call me @ Reviva UK www.revivauk.com
This is a BR vs IVA question.
Posted - 03 November 2008 : 18:06:40
