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.
- We take full details of all your income, after tax.
- 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.
- Next we work out how much your disposable income is by deducting your expenditure from your income.
- 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
An IVA is an Individual Voluntary Arrangement and every single one we deal with is different. The most common form of IVA has 60 monthly payments. Some are shorter than this and others provide for some monthly payments and a lump sum at some point. Our debt experts will spend as much time as it takes to put together your agreement so that you can be confident that you will only pay what you can genuinely afford – no more and no less.
For further information on the advantages and disadvantages of an IVA please follow the link to The Small Print.
Call us today to find out more
0800 988 8199 
Important Information About Our Service & Fees
Whilst we strive in all cases to negotiate the best deal with your creditors, we cannot guarantee a reduction in interest or charges. Also as one of the largest providers of debt management solutions in the UK, we are able to provide initial advice over the phone without charge, however, if a debt solution is taken out, please be aware that fees will be charged. We aim to keep these fees as low as possible and believe that we are very competitively priced, for detailed information on our fees, including examples for each product, please click this fees link.
Further Additional Information
What if you decide that I don't want to go ahead? - click here.
Will your credit rating be affected? - click here.
The insolvency service has produced a guide for people who are struggling with debt. This guide outlines each of the available solutions. You can download the guide by clicking the following link - In Debt? Dealing With Your Creditors.
If an IVA is not maintained it could lead to bankruptcy.