Income and expenditure

[BECKY]

Hi this is my i and e can u tell me if this is reasonable I earn between £600-£800 a month self employed and currently pay £342 into my iva but have found myself seriously struggling, i'm lookin to try and reduce my payments a little to make life a bit easier.
Car tax + service £20
rent £160
phone £30
car finance £69.89
food + toiletries £90
petrol £40
tv £15
internet £10
car insurance £30
clothing £40
total outgoing £504.89 a month
leavin me with £295.11 to spare at most , but £342 to pay into my iva
hope someone can give me a bit of advice, i want to pay in as much as i can but i dont want it to be impossible and end up with my iva failing

[MelanieGiles]

Your budget looks very frugal to me. Are you sure that continuing with the IVA is the best way forward for you? I would expect to see you spending at least £200 per month on housekeeping, and there is nothing in this budget for contingencies, medical expenditure, insurance.

I suppose things might ease a bit when your car finance agreement concludes, but I would seriously look at the other options of DMP or bankruptcy - even though you are self-employed most people are still allowed to continue trading whilst bankrupt.

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

[BECKY]

Its in my agreement that as soon as my car finance is paid that needs to be added to the iva payments too.Ive rang my new ip ( my old iva company has closed ) and asked for a new income and expenditure form . I was just checkin that I wasn't adding to my expenditure something that wasn't reasonably allowed

[BECKY]

how easy is it to revert back to a dmp whilst in an iva, also how do u go about goin bankrupt when self employed and still retaining ur business, i don't think i'll do this just want to know all my options

[MelanieGiles]

Becky

What sort of business are you in, and do you work from home or from business premises?

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

[BECKY]

i'm a hairdresser and i own a small shop i didnt consider bankruptcy because i employ 2 people and wouldnt dream of jepordising there jobs as theyve both been very loyal for years

[BECKY]

sorry i dont own the shop i lease it

[BECKY]

is it poss to extend an iva for 6 months or does it have to be a yr

[MelanieGiles]

Hi Becky

I assume that you mean extend the IVA past the normal five years - for say another six months or one year? If so this can be possible, for instance if you need to try and achieve a minimum dividend.

I think that you will find that your shop lease will terminate if you enter into bankruptcy proceedings, and possibly under an IVA as well. Did your IP check the document before drafting your IVA proposal? And what type of lease do you have and over what period?

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

[BECKY]

she didnt look at it at all no. i am in the process of renewing my lease and have been in my iva since sep 06. Ive never missed a payment and am not in arrears with them and have completed all negotiations over rent increase. do you think they will terminate the agreemant im really worried now? and yes i was thinking of extending over 6 months to slightly lower the payments but will deliver a dividend of 29p in the pound so more than the agreed 26p , do you think this is acceptable?

[Adam Davies]

Hi
I would speak with your IP to see if you can come to an agreement as it,s in everyones interest that you conclude your IVA.I would be very surprised if your lease will terminate as you are upto date with everything and I guess that you were in the lease when you took out your IVA,did your IP say anything about this at the time ??
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

[BECKY]

no we discussed my business and she said me being in an iva would have no effect on my business at all. ive run it for 6 years now and never missed a rent payment

[MelanieGiles]

Check the terms of your lease to be sure. Contingent creditors (which would include your landlord) also have to be served notice of IVA proceedings.

It doesn't matter if you are up to date with the rent or not - if you have a termination clause upon the taking out of an IVA, then you are in breach of the lease. In reality, however, most landlords are prepared to waive that provision so long as they continue to receive their rent.

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

[BECKY]

ok i'll check that out thanks.Only problem now is my iva has been transferred to a new ip what if there view on where my business stands are different to that of my old ip where do i stand then

[MelanieGiles]

They will need to follow what has gone on before Becky, so I would send details of your proposed variation to reduce the payments to the new IP as soon as possible.

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