I am in the calm before the storm

[nmk]

Hi all
This is my first post here and am encouraged by all the great advice and people that post here. Thanks!!!!
i am considering an IVAwith Grant Thornton and they have suggested a proposal of repayment of 267pounds per month on debts of 33500 consisting of 7000pounds egg loan, 6000pounds egg card, 14000 natwest graduate loan, 2000 natwest overdraft,3400 student loan and 2200 inland revenue. I have no real assets and am likely to relocate to the US in the next year or two for family reasons (although I am a British citizen). Due to my monthly income and outgoings, I don't feel like 267 is going to be manageable and am concerned that bankruptcy is a possiblity, inevietability even. My parents may be able to offer a settlement figure in the region of 11000 pounds with me repaying them. This would seem to be a better return than bankruptcy and would be approximately the same as the IVA amount over 5 years. Can anyone advise? Things are pretty desperate and feel like I am in the calm before the storm. I have just started missing payments although have posted out offers of reduced payments to my creditors. Not yet heard a response.
Thank you all.

[MelanieGiles]

Hi nmk and welcome to the forum

I am one of the experts who regularly posts on the forum, and can give you the benefit if my experiences as a practicing IP. Other experts may have differing views, so do be sure to read all of the posts.

If you feel that the figure suggested to you is too high, then you should not enter into an IVA. You will struggle to make the payments, and the whole thing will fall into jeopardy. Was this figure actually calculated by reviewing your actual income and expenditure, or was it the lowest figure possible to provide a minimum dividend of 25p in the £?

I do not think that an offer of £11,000 alone into an IVA would also be acceptable to the creditors, as the return would be much lower than 25p in the £ taking account of IP costs. But best to speak to your nominated IP directly to see if they feel that would be a viable offer.

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

[nmk]

Thanks Melanie

It was based on income/expenditure, however I am paid every 4 weeks not per month, so whilst the figures were reasonably accurate, I could forsee problems with most bills coming out monthly. I'm also in a profession that requires approx. 2000pounds per year in subscription fees, not accounted for in the income expenditure sheet. As I have to live in london, my rent is high, and my feeling was that the allowances for food etc. were lower because of this. Grant thornton felt that 267 was a "number we can work with", but I'm concerned that this will be a stretch too far for me. I have the proposal ready to be signed, I just keep number crunching and don't know if I can do it.

[Adam Davies]

Hi nmk
Think very carefully about an IVA,five years is a long,long time on a very tight budget and we all know that things crop up that we have not budgeted for.
What is your "actual" disposible income when you take out your subscription fees ??
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[nmk]

Hi Andy

Thanks for the response.

My actual disposable excluding subscription fees is currently 200 pounds. The calculations made by GT factored that over 13 pay periods (paid per 4 weeks) this was closer to 250, with a little bit of trimming of expenditure up to 267 which is where they got that figure from. Their initial response was that IVA may not be possible, so I know it's a borderline case. I don't really envisage my income dramatically increasing in the near future.

Nicky

[louisa.s]

Hi there,
You have to do what you feel best. I'm not syaing this to sway your judgement in any way but we were a borderline case when we entered into our IVA with Grant Thornton last April and it is exceptionally hard work and our I & E is very tight.

Louisa

[redhead]

HI NMK - Louisa is quite right - you have to do what you feel is right for you - I have been in an iva for 3 and half years and my circumstances have changed greatly since i started my iva its been very hard work and things are very tight and if i could tell you that i dread xmas thats an understatement I just dont have any surplus money, but i keep going cos i dont have long to go before it ends....Think wisely

I can just see in the far distance the light at the end of the tunnel hurray!!!!

[MelanieGiles]

Hi again

Please don't try and stretch your budget to make an IVA fit. If you cannot afford to make the minimum payments required, then look to other options, as the arrangement will likely fall over to every parties detriment.

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

[louiseh]

I've just recived my draft proposal, and modified the figures to what I think is affordable. If it's not acceptable it's not acceptable, but I'm working to my income and expenditure as I'm the one who has to live with it. At the end of the day five years is a long time.

[nmk]

Thanks all for your input

I will be speaking to Grant Thornton tomorrow about this. I suppose everyone goes through the feelings of being overwhelmed and frustrated. Mainly with myself I must admit. It's very apparent that IVA is not the easy route that it's potrayed to be on Tv.

Nicky

[Adam Davies]

Nicky
You,ve hit the nail on the head there !!!
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp