Example

If after discussing your case with you we advise that the best way forward would be an Individual Voluntary Arrangement – IVA - then you will no doubt want to know how much you will have to pay.

This is how we work out the repayment proposal to your creditors.

  1. We take full details of all your income, after tax.
  2. We take full details of all your expenditure. We include such items as mortgage repayments, rent, council tax, bills etc… What we do not take account of at this stage is the payments that you are making to your unsecured creditors – the people that you owe money.
  3. Next we work out how much your disposable income is by deducting your expenditure from your income.
  4. We then multiply this figure by 60. This is the normal monthly period over which an IVA runs.

Below is a specific example.

Your take home pay is £1800 a month.

Your total outgoings are £1550.

This means that you have a disposable income of £250.

Multiply £250 x 60 = £15,000.

£15,000 is therefore the amount available to be paid in to your voluntary arrangement.

We then offer this figure to your creditors.

REMEMBER THE I IN IVA

The I in IVA stands for Individual and you must remember that the examples given on our website are only illustrations of some of the cases which we have dealt with.  Every client’s circumstances are unique and we cannot calculate the exact figures which you would pay until we have full details of your personal finances. The sooner you call the sooner we can begin to work out your Individual Voluntary Arrangement.

Call The Debt People today on 08000 370 053