IVA How much will I have to pay

Creditors expect you to pay as much as you can reasonably afford; they want the arrangement to succeed, so they need to be reasonable otherwise the arrangement will be guaranteed to fail.

A monthly income and expenditure account will have to be prepared showing how much income the household receives, including other income like child benefit, tax credits, pensions, etc. and all your normal household expenditure listed.

The income and expenditure will look something like this:-

Income
£
£
Your take home pay (inc. overtime)
1,400

Your partner's take home pay
850

Other income (Benefits, pension, maintenance etc)
50



Total household income
2,300


Expenditure

Mortgage/rent
500

Mortgage endowment
80

Council tax
80

Water/Gas/Oil/Electricity/Phone/mobile
100

Food and other household
300

Car expenses
100

Car finance
100

Public transport
20

Clothing
100

Smoking
100

Maintenance/CSA payments
100

TV Licence/rental
20

Insurances (Home, life, health)
40

Pension contributions
40

Other
-
-
Gifts, Christmas, contingency
50



Total household expenditure
1,730


Net surplus of income over expenditure
570

The above is only an example and your figures will have to be supported by 6 month's payslips and 6 month's household bills.

For further information contact MFA Chartered Accountants and Insolvency Practitioners based in Fareham, Hampshire and covering , Portsmouth, Southampton, Havant, Locks Heath, Petersfield, Waterlooville, Horndean, Titchfield, Lee-on-Solent, Emsworth, Park Gate, Warsash  and all surrounding areas.

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