Help - I think I have too much money!

[single_mum]

Hi - I've just signed an IVA proposal - £27k of unsecured debt following a horrible divorce. Been struggling for 2.5 years, but have had to give in.... [:(]
However, I've just done a quick budget exercise and compared my outgoings to what my IP have stated in my statement, and I've got £266 'disposable' income left over - is this right? My proposal is offering 32p in the £.....

[MelanieGiles]

I am not sure what you mean - are you saying that your IP has miscalculated to the tune of £266 or that your offer to creditors is based on payments of £266 per month?

[single_mum]

My IP has calculated that I have £1852 of income, and come up with expenditure of £1852. I've calculated my expenditure to be £1625, inc the £231 I will pay towards my IVA. This leaves me £266 a month....

[MelanieGiles]

Then I think that you ought to draw this to the attention of the IP you have chosen to represent you to see where his/her figures come from. At the end of the day the IVA should be based upon what you actually spend with some allowances for unforseen events and contingencies.

[plasticdaft]

Has your ip not included some emergency money in your iva proposal,ie he has made your income and expenditure the same(inc IVA payment),showing that your offer is the best you can manage.

[cat 1]

Has your IP over estimated anything eg council tax in reality is £110 and he/she has put down £130, or petrol.You may have £30 allowance but you only use £10.Is this what you mean? Don't forget your family allowance and contingency money as well.What you see as disposable income now will proberbly be part of your day to day life?Let us know how you went on.Cat

[single_mum]

Hi - thanks to you all for your replies - I've re-looked the inc/exp sheet that was sent through... my IP hasn't allowed for income via child maintenance - my Ex OH is a discharged bankrupt who was made redundant 2 months ago - and the receipt of any money is debatable.... If I do get any, will I have to declare? Esp if it's sporadic. Since his redundancy, the attachment of earnings has stopped, and the £20a month the CSA said I would get hasn't materialised yet!!!

[single_mum]

Oh - and they've allowed seperate amounts for landline broadband and digital TV - my deal is £23.45 for all three on Virgin, and yet they allowed £70!!!!!

[LoneRanger]

It amazes me where these figures come from-yet IP's say they have to follow certain guidlines. You have been allowed £70 yet im allowed £55 for a couple yet we pay all our seperatly and totals £80. So what guidlines are people following, from what i see some people come out of this at the end of each month better off than others. Even when i explained ours was much more than this i was told they could not allow more than £55

[LoneRanger]

yes but she has also said that they have over allowed for certain things so it probably does add up for an IP. The point she is trying to make is that what she has been allowed is alot more that she actually spends. Just an honest person...

[Emily]

I think there are generous future provisions built in to avoid the need for a variation meeting to reduce payments...if so then who is this IP....nice generous chappie or lass....

Where is the consistency....don't ask?

[indebtforever]

If you have been left with more disposable income then good luck to you i say. Creditors are happy ip is happy and so should you be

[CJ08]

I saw a draft one company sent out to me and they said to me when i questioned why they put my council tax 25% more, and gave me more in other areas they said it was standard admittedly my council tax can be 25% more but im on the single person allowance so i do kind of see why they do that incase my circumstances change.... but why say you pay double on energy bills and they said my water rates was 3times what i pay! is this a way to make out u can afford to pay less than u actually can!? btw i havent decided on who to go with yet!

[indebtforever]

this is all in your benefit really because if anything goes up in price the chances are you can afford it so wont struggle to need a variation i think it is a good idea especially if you are offering a decent return dividend.

living comfortable in an iva wow now that would be nice i am lucky if i can afford a ten pence rise without a variation[:I]

[MelanieGiles]

This sort of post actually makes my blood boil, because it suggests that some IPs out there are deliberately misleading their clients and creditors.

This is a direct consequence of what happens when creditors insist on a benchmarked process which does not fit all circumstances. It will get abused and creditors are not inclined to do any checking or audit work to ensure what is put in front of them is correct.

I hate having to use benchmarks for my clients - if some people say they spend £40 per week on shopping I believe them - if some say they spend £100 the same rule should apply - obviously within reason. If IPs are putting in falsely inflated figures, just because the guidelines say that these figures are allowable, then perhaps we will eventually be trusted to use our own judgement again, rather than having to follow outdated expenditure allowances which give £12 per month for a child's school dinners. That would not even pay for a packet of crisps every day, let alone a nutritious hot meal!