can I pay my Mom as carer ?

[patch]

If I enter a IVA can my kids still attend private school my daughter is 3 years old and the school I want to send her to is cheaper than Private Nursery and I do not qualify for Working Tax Credits as we earn to much for that , and also my mother in law will be looking after my baby as I can't afford both kids to be at school he is 8 months old she is leaving her country and her pension to help me so can I pay her as a carrer a small amount to buy her clothes and personal stuff total cost of school andMom £800 much cheaper option than nursery both kids £1700

[MelanieGiles]

Hi patch and welcome to the forum

I have a number of clients with children in private education, so long as this can be justified. And of course you can pay your mother in law to look after the little one - but do be aware that she will need to account for her earnings to HMRC if she exceeds the minimum level of earnings.

Creditors will look very closely at this expenditure, which does need to be proportionate to your earnings and the disposable income that you are offering to them. Have you tried to claim Child Tax Credit to assist with nursery and childminding fees? And how much do you take home each month between you?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[patch]

Thank you for the answer , I do get tax credits and child benefit which is not much £86 TC and £120.80 CB, this is not a lot if you think how expensive chilcare is very difficult situation if kiddies are small. Another question , can they sell my car as this is on HP and 21 months left to pay I wrk 25 miles away from home and need the car to keep my Job? I read about them selling things for equity release ?

[MelanieGiles]

It is unlikely that you would be required to sell your car, unless it is of unusually high value which could not be justified. But if your are going to enter into an IVA, you will need to be prepared to increase your monthly payments to the extent of the hire-purchase saving, once the agreement has concluded.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Kes]

Hi Patch, Unfortunately, the government have stated that you can only pay a registered child minder or child care facility to look after your children. As a single parent I wanted help from my mum but they wouldnt accept paying her as an expense. At least if you pay a child minder I believe you can claim allot of it back through your tax credits. Also allot of companies are doing a voucher scheme to help with child care costs offset against the tax you pay. I cant remember the name of the scheme now, but its worth asking your employer about ot contact tax credits for help.

[james.c]

Hi Patch

I know nothing about this, so I can not verify what KES as said.

As an idea to get round the info Kes as given I am sure you could pay your mum as a baby sitter, and what might help is get qoutes from childminders and if what you are paying your mother for "babysitting" is cheaper than a child minder then show this to your IP and argue the case that using your mum instead of a childminder is cheaper which gives you more money to give to the creditors

no matter how bad money gets, theirs stll alot more important things in life - 48 payments to go

[patch]

Hi Kes , James
Thanks for that the other question I have is private schooling for my daughter , not sure if this will be approved not the best school in the catchment area , and also my mother in law's health is not the best so she can't look after both kids so one has to go to school or nursery she is only 3 so only option is nursery or school , at the moment Nursery £850.00 full time and private school £600.00 what will the IP say about this , I have the right to educate my child is this true ?

[Adam Davies]

Hi
Yes you do
However your creditors also have a right to reject your IVA so it is all about getting the right balance.
Speak with several companies before starting your IVA and go with the one that understands your concerns
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[patch]

Hi

What is the lowest amount that they would accept on a IVA is there a min amount that you have to pay , debt is £80000.00 and payments of £459.00 has been calculated , but my circomstances will change in the next 3 months as both my kids will have to attend nursery.
The credtors have voted and the IVA has been approved for £459.00 , can they still vote to make us bankrupt ?

[MelanieGiles]

Your IVA payments are calculated on the basis of affordability, and not benchmarked as such, but you would need to be looking at payments in the region of £460 to make it viable and attractive to creditors.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp