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Advantage of IVA
Click here to see how IVA can reduced your debt and help to make you debt free in 5 yrs!
Minimum Monthly Payments From Income
When debtors propose an IVA to their creditors, they offer to re-pay a percentage of the debt via monthly installments. The sum suggested is based on what the debtor can afford to pay.
This means that the monthly debt re-payments vary on a case-by-case basis. They depend on what assets the debtors have and how much money they have available after their living expenses have been deducted from their monthly income.
However, there does tend to be a minimum amount that creditors will accept as part of the IVA proposal. An IVA is usually rejected if it offers to pay the creditors less than 20-25% of what they were originally owed.
The most common type of IVA consists of 60 monthly payments made into a fund over a five year period. The following tables show what the minimum contribution would need to be for a variety of levels of debt. It assumes that the creditors would get back at least 20% of what they were initially owed
Your total
unsecured debts |
Min monthly
payments |
Total amount
paid into
IVA |
Debt reduction
by
IVA |
| £15,000 | £208.33 |
£12,727 | £2273 |
| £20,000 | £233.33 |
£14000 | £6000 |
| £25,000 | £258.33 |
£15500 | £9500 |
| £30,000 | £283.33 |
£17000 | £13000 |
| £50,000 | £383.33 |
£19,500 | £30500 |
| £60,000 | £433.33 |
£22,000 | £38000 |
| £70,000 | £483.33 |
£24,500 | £45500 |
| £80,000 | £533.33 |
£27,000 | £53000 |
- This chart is only for EXAMPLE purpose. Your final payment amount may be different depending on the complexity of your situation and composition of your debt.
- Note: for an IVA that is paid entirely out of income, there is a minimum payment of around £200-£300 per month. This is so that the total contributions are enough to cover the fees of running the IVA, and still have sufficient funds to make a significant pay out to the creditors.
- Minimum £15000 requires for Free IVA advice
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