Questions about Individual Voluntary Arrangements and Insolvency.

Moderators: TalbotWoods, JaneClack

User avatar
By sarah1975uk
#148576 Have finally decided to do an iva can you guys check my soa is ok and whether you think that based on the figures that an iva would be accepted.

Mortgage £500.00
(cant reduce this its on interest only and tied in for 3 years)
Food/Toilitrees
/Cleaning £350.00
Electric £40.00
Gas £40.00
Just switched supplier recently and this is the cheapest i can get it at the moment, yes i have wall and loft insulated for economy money saving help.
Pets £43.00
Tv Licence £12.00
Phone & broadband
& mobile £70.00
Council Tax £75.00
Water £50.00 is cheaper for me than going on a metre (experience!)
Buildings &
Contents insurance £30.00 lowest i can get it without compromising on cover
School Dinners £130.00
british gas insurance £25.25 wont give this up id be right in the pooh if major catastrophie happened ie boiler breakdown etc)
social & emergancies £100.00
pc insurance £9.99
life insurance £35.00 wont stop this want safty net for my 3 young kids)
Car Insurance £40.57
inland revenue debt £20.00
Petrol & Parking £80.00
Breakdown Cover £7.00
Cigarettes £100.00 (have really tried to give up and failed)
Childcare Costs £670.00 (cheapest i can get it remember i do have 3 kids and so rely on childcare big time to allow me to go to work)
School trips £30.00 (wont stop these kids deserve their fun time too and its educational)
Hairdressers £40.00
Dentist/Optitions £13.00
Laundry Costs £30.00
Car repairs
/home Emergancies etc £120.00
Clothing and footware £70.00
children pocket money £30.00
Entertainment £50.00 ( dont think this is excessive remeber there are 4 of us)
Holidays/Xmas/Birthdays 100.00
CCJ For car HP £50.00 (currently being taken to court have accepted acknowledgement of service)
Money owed to Dad £60.00 ( if you met my dad you know he would want this paid back and in full lol) and totally would kill me if he knew what debt im in so shhhh dont tell)
Road Tax £12.00
total outgoings per month £3,032.81

Total Income £3,313.00
Total Outgoings £3,032.81

Surplus to go towards debts £280.19 under potential IVA


Debt Debt Outstanding
CCJ HP Car £7,313.00 £50.00
HSBC CC £3,200.00
Halifax Loan £12,500.00
Halifax CC £1,500.00

Total Debt £24,513.00

Joint Powergen Debt £600.00 (going to try and do a full and final on this, it was for a house i used to live in and am now at current address and supplied by someone else)

Joint HSBC Bank A/C £1,488.92 Going to claim charges on this hopefully will wipe out majority of this debt, and will do a full and final on any balance.

Joint Halifax Bank A/C £4,000.00 Going to claim charges on this hopefully will wipe out majority of this debt, and will do a full and final on

Total Joint name debt £6,088.92 (see above for my course of action on these)

I hope this SOA is viable for an IVA after feeling so crappy for so long i just want some light at the end of the tunnel.




:o
User avatar
By spunky_monkey
#148588 hi

firstly, i'm in an IVA myself, so don't rely totally on the comments that i make...!

from looking at your statement, i would imagine that some of the items would be questioned. i can't guess at specific amounts, as i don't have a family to support like you do:

1. cigarettes
2. emergencies, entertainment, holidays, birthdays etc - i am allowed £50/month 'contingency'
3. insurance - i would expect the 'pc insurance' in particular to be questioned
4. your dad - he would probably be classed the same as the rest of your creditors. i would imagine that the only way for you to pay him back would be to use some of your allowed 'contingency'

best of luck to you, and i hope it works out.

spunky
By hayleebec
#148594 you may find this useful found it on net we are in an iva ourselves and it is a lot more restrictive than your own i&e, saying that we manage ok and find it is the best thing we did.

Mortgage Variable
Rent Variable
Second charge on property Variable
Payment to arrears on second charge Variable
Private pension Limited
Building and contents insurance Variable
Life Insurance and endowment policies Variable
Electricity, gas, oil, and solid fuels Maximum of £40
Telephone (including mobiles) Maximum of £40
Vehicle tax and MOT £18
Vehicle maintenance Maximum of £30
Vehicle insurance Variable
Petrol Must be justified
Public transport, trains and school buses etc Must be justified
Vehicle breakdown cover: eg AA, RAC Maximum £8
Court Fines: eg speeding etc Variable
Lottery tickets Not allowed
Pets Maximum £25
Household insurance plans: eg gas fire, boilers etc Not allowed
Council Tax Variable
Water Rates Variable
Maintenance/CSA payments Variable
Housekeeping £180/£320 for a couple
Hairdressing £8 per person
Medical, dental, spectacles etc Max £15 if more must be justified
Clothes and shoes £20 per person
Newspapers and magazines Not allowed
House maintenance Not allowed
School, college and university fees Must be justified
Regular subs: eg Union fees Variable
Laundry expenses Must be justified
HP/Rental: eg car, washing machine Variable, must be justified
Social life Not allowed
Smoking Not allowed
Hobbies, clubs and societies Not allowed
Children's pocket money Not allowed
TV Licence £10.08
Satellite TV Not allowed
Child care Variable
Nappies and baby milk Maximum £25
School meals Included in housekeeping
By red24
#148603 Sarah

Unfortunately I agree with the other posts and quite a lot of what you've listed is not allowed. I have a budget guide I can email to you if you want!

Not sure of the allowance for a couple +3 but broadband, mobile, school dinners, gas insurance, emergencies, pc ins, cigs!, pocket money, entertainment, birthdays and your debt to your dad all look dubious.
Some of the above I was asked to take off mine with Payplan and our clothing allowance of £40 for 2 was queried by our mortgage company who said it was too high until I asked her where she shopped!
User avatar
By TalbotWoods
#148607 Whoa, Halt Stop, take a step back for a second.

Each and every IP negotiates what is and is not allowable in an IVA, and that is based on your mix of creditors, and waht they will or will not accept, so it is impossible to put up an SoA and ask if it will get through. Unfortunalty there is only one answer we dont know, and we cant tell.

If everyone who was on an IVA put up ther I&E, they would ALL be different.

But you have one item on there that will disallowed immediatly that is the debt repayment to your father, and that is universal as he would legally be classed a a creditor, with no ifs or buts. If you insisted he remain on your I&E any IVA proposal would be rejected immedialty by ALL the creditors!!

Plus the HMRC debt would alo be included in the IVA unless that has already been CCJ'd

The other thing I have notices is that you figures seem quite close to what would be allowed in bankrupty, and there lies a problem, expenditure in IVA's is MUCH tighter than in bankruptcy as to what they will allow and wont allow.

I canonly suggest that you contact one of the bette IVA comapnies or approach an IVA IP directly to see what your options on the I&E are.

You can find loads of info on IVA companies and even IPs that specialise in IVA at http://www.IVA.com

Tim
User avatar
By sarah1975uk
#148619
TalbotWoods wrote:Whoa, Halt Stop, take a step back for a second.

Each and every IP negotiates what is and is not allowable in an IVA, and that is based on your mix of creditors, and waht they will or will not accept, so it is impossible to put up an SoA and ask if it will get through. Unfortunalty there is only one answer we dont know, and we cant tell.

If everyone who was on an IVA put up ther I&E, they would ALL be different.

But you have one item on there that will disallowed immediatly that is the debt repayment to your father, and that is universal as he would legally be classed a a creditor, with no ifs or buts. If you insisted he remain on your I&E any IVA proposal would be rejected immedialty by ALL the creditors!!

Plus the HMRC debt would alo be included in the IVA unless that has already been CCJ'd

The other thing I have notices is that you figures seem quite close to what would be allowed in bankrupty, and there lies a problem, expenditure in IVA's is MUCH tighter than in bankruptcy as to what they will allow and wont allow.

I canonly suggest that you contact one of the bette IVA comapnies or approach an IVA IP directly to see what your options on the I&E are.

You can find loads of info on IVA companies and even IPs that specialise in IVA at http://www.IVA.com

Tim


Thank you so much for your reply, sorry to have gone off in a tangent lol stressful times at the moment, so many thoughts and ideas on the best way forward. I am going to now try for an iva and hope for the best, if not then have to rethink if not accepted. i have my kids and my health so whatever happends thats the important thing, just struggling to cope with the prospect of if worst case scerario bankruptcy is the best option that i have worked hard to get on the property ladder and risk never ever being able to get here again (minus the debts of course lol) each year that goes by property just seems to escilate in price so i really feel for everone who wants a home cant always get one, im so fortunate to have a mortgage, at least whatever debt im in at the moment i never ever have missed a mortgage payment and im proud of that!
User avatar
By sarah1975uk
#148628 Definately set my heart on iva now, made a few calls this weekend and have ip calling me tomorrow to let me know for definate that all will be ok for me. spend hours on the phone to a great lady tonight who really lit my fire and has shown me this can be sorted and will be sorted.

All my new friends on here are truly inspirational, love you all to bits, you have given me so much time and consideration. have adjusted my soa with iva people over the phone tonight to more realistic figures etc so will now be cutting right back and living within my means lol Feel so guilty for putting myself and the kids through this but will most definately learn by this, im going to be so tight and stingy lol omg needed things to get so bad so i got the reality check. although my debt is wrong there were circumstances where i fell behind with debts plus charges upon charges etc etc . Seperation iwth my husband last year, stressful job at the time i was working in mental health team for the NHS and totally ripped my heart out the patients i dealt with daily, resulted in me being off sick for quite a while due to stress and panic attacks and totally lost the plot on how to sort my own crap out, so had a period of time burrying my head in the sand. its either sink or swim and im not going to let this all beat me. i have now changed my job and i love it, i cant look back only forward in my life.
By £76K
#148642 I suggest you put a call into Payplan or CCCS for independant advice. You will have been speaking to sales people this weekend who will make you sound all rosey when in fact an IVA is strict.

First of all the debt to your Dad will be written of secondly the fags will be wiped out. Also don't be suprised to see the creds wipe through a lot of the other stuff, the IP may even do this. If you read my previous posts I got sales person tell me I could do an IVA for £165 per month & no equity, in the end my proposal via a different company was £400 pmodified up to £430 at the meeting!