First Post and help

[Adam Davies]

Hi
just speak to at least one more company before deciding.
From my own experience Amex are a very aggresive creditor and I am surprised that payplan consider £70 per week too high for board and keep at home.
You do need a second opinion.
regards

Andy Davie
IVA.co.uk Spokesperson

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

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

[MelanieGiles]

I concur with Andy. It is not for the IP to determine whether your rent is too high, but to record what you are paying and to whom. Let the creditors make their mind up if the figures are acceptable if you decide upon the IVA instead of a DMP.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[ray_a]

Hi HR

I don't think £70.00 is unreasonable for rent and should be seriously considered!

I think you should go around and talk to other companies.

Perhaps I may be wrong to say this but when drawing up your expenditure you should allow something for contingicies in case you have a problem with the car or any unforeseen expenses.

Hope this helps

Regards

Ray

[Lapdog]

I find the whole situation with regards paying rent to parents for lodging as a bit confusing. I'd have thought they should be considered pretty much the same as any other landlord to whom you pay rent/bills. I don't really understand how creditors/IP's expect you would pay significantly less to your parents than you would to anyone else.

Of course what part of the country you live in makes a difference but if creditors/IP's dont think £70 a week is an acceptable payment for board and lodging to parents, what do they think the alternative would be if you moved out?

Surely a debtor at home and with parents has a better chance to sustain an IVA than someone without that support.

[iva experts]

Hello hr1350,

As others have advised, I would definitely ring around 2-3 companies which will hopefully rule out conflicting information.

People who go into DMP's with a debt amounts higher than £15,000 can feel after a while that there is no light at the end of the tunnel. I would look into an IVA; you have a good amount of disposable income.

Who are your creditors? And how much do you owe to each one?

Best Regards. IVA Experts

[hr1350]

Creditors are as follows
Cahoot Current Overdraft £1,824.37
Cahoot Credit Card £1,595.75
Cahoot Flexible loan £9,623.44
Egg Card £4,120.82
Egg Money Account £4,299.88
Capital One £3,882.61
American Express £2,420.89
Citi Cards £2,400.55
Goldfish £5,291.35
First Direct Loan £1,039.14

I would think £70 an unreasonable price for rent to parents. The contact at Pay Plan did say he would be able to play around with the figures for house keeping in an DMP. He said an IVA does not allow for things like smoking, gym etc. I will have to book some days off to get all the phone calls in! I am tempted to try an DMP for a while while I look more into an IVA so at least it will hopefully give me some breathing space from the calls and letters and allow me to try and get on my feet again with the day to day money issues.


In over my head looking for somewhere to turn

[MelanieGiles]

IPs should not "play around with figures". They should represent an accurate picture of your expenditure, and allow the creditors to make a reasoned decision as to whether it is acceptable. Some creditors will allow smoking and gym membership, so put those down if they are applicable to you - the creditors can only say no!

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[aguise]

Some creditors as Melanie says do allow for things like smoking and gym in an iva.

Ang

[hr1350]

IPs should not "play around with figures". They should represent an accurate picture of your expenditure, and allow the creditors to make a reasoned decision as to whether it is acceptable. Some creditors will allow smoking and gym membership, so put those down if they are applicable to you - the creditors can only say no!

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Perhaps "playing around" was the wrong thing to say. Hopefully the paper work will arrive tomorrow and will see whats in it but won't make the decision straight away. Need to call some more companies as advised here.

In over my head looking for somewhere to turn

[Adam Davies]

Hi
I just have a feeling that payplan have made their mind up that its a DMP for you.
Please get a second opinion.
Regards

Andy Davie
IVA.co.uk Spokesperson

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

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

[hr1350]

Thank you for all the help and advise so far, I have tonight contacted Clear Start and downloaded the form for Finebridge and will be completing this soon as well.

The monthly expenditure is hard to work out. Roughly according to the figures I have put down it would be £516 per month for creditors but this sounds like alot (i know alot less than I am paying at the moment) over 5 years. That would be paying back about £30,000 or the £36,000 debt.

On the rent situation my rent work out at roughly £300 per month I could rent not a single bedroom for this around here let alone a flat (however much I would like to).

I am so glad I have found this site, after months of worry and really ignoring the situation in the past 24 hours I have started to do something about it. Unfortunately this months wages will be going into my current account rather than the Think Banking account I have set up so another month of charges etc.

Do I cancel DD (that will prob bounce) with companies now, waiting until I know better which way I am going?
Do I make token payments now or continue trying to make the minimum amounts?
When I get phone calls (had one from capital one now 2 months back with them) do I say I am contact companies for advise and I can make a token payment?

Thanks once again everyone.

In over my head looking for somewhere to turn

[MelanieGiles]

It is up to you whether you pay nothing - or just make token payments. Token payments may stop the calls and letters for a while, but are unlikely to change your creditors' view in the long term. Make sure that if you make token payments, that they are made pro-rata to the amounts you owe.

If the creditors ask you for an update - tell them exactly what you are doing - ie seeking advice from several different companies. And do remember that if your gut feeling is that you cannot afford the payments - the reality is that you probably won't be able to.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[hr1350]

Thank you Melanie, I have now been reading different posts on this forum for the past 2 hours I will wait and see what the documentation from Payplan is and then I can go about filling in the different forms from other companies with the same information. The rent situation is my main worry with an IVA.

I know I live with parents but they do not know my current situation and I is something I am struggling to pick up the balls to talk to them about it. They are not well off and a drop in my rent (although the payments to them have bounced recently!!) would put a squeeze on them.

My food budget is also a concern, I have Coeliacs which means I am unable to eat any food with gluten in, and gluten free food is very expensive (£2 for 4 rolls), although I get food on prescription (£99 per year for the yearly card) buying other foods is not cheap. Would this be considered if I were to go for an IVA?

Would a 27p in the pound settlement be except able or would they consider more as I have no assets other than a car but I need that for work?

Arh so many question!

In over my head looking for somewhere to turn

[MelanieGiles]

Absolutely your dietery requirements would be considered important - well they would be if you were a client of mine anyway, I cannot speak for other firms.

With regard to your rent - you simply need to disclose what you are paying. If this produces a return of only 27p in the £ - many IVAs are accepted at this level each day.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[hr1350]

Thanks once again, I think I might be contacting your company soon as well!!

right I really must get some sleep!

In over my head looking for somewhere to turn