IPA agreed

[zoe]

Hi All
Just to let you know i have had a letter from the official receiver to tell me my IPA will be £100.00 a month. Far cry away from the £485.00 for 24 months then £675 for 48 months plus equity release!
Z
x

Zoe
x
Keep your chin up - everything happens for a reason!
View my blog http://zoes.blogs.iva.co.uk/

[MelanieGiles]

Will creditors ever see the benefit of the IVA procedure Zoe? As a matter of interest, what disposable income did you declare on your bankruptcy application forms?

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

[zoe]

I gave everything as in the IVA, however the official received would take none of Michaels income. On my IVA i was short for the dividend which Michael was making up from his wages, then the creditor asked for all of Michaels disposable income too. They also gave me allowance for misc.
They also split bills 50/50 not percentage earned
Z
x

Zoe
x
Keep your chin up - everything happens for a reason!
View my blog http://zoes.blogs.iva.co.uk/

[zoe]

Sorry just to add, since June we have now been told by our management company (as the road is privately owned the council will not adopt) that we have to now pay £240 per year for the road.
The other thing is they only have 50% of disposable.

Zoe
x
Keep your chin up - everything happens for a reason!
View my blog http://zoes.blogs.iva.co.uk/

[MelanieGiles]

Zoe

Can I ask you how you are feeling about everything now, having been throught the rollercoaster of proposing the IVA, seeing it rejected by one creditor but accepted by others, facing bankruptcy, and coming out of bankruptcy the other side.

In hindsight do you still wish that creditors had supported your IVA, or are you a little bit glad that things have turned out the way they have. Do you feel a little bit sore for the other creditors who supported you, but were forced to accept a zero return due to the wishes of one creditor.

I know that your Mum has offered to buy out your beneficial interest, but with the £385 per month that you are saving on your monthly contributions you can easily cover that yourself. The difference between IVA and bankruptcy procedures, in terms of expenditure allowances is getting larger, and this will result in more bankruptcies - the statistics are already out there.

Thanks for continuing to post - it is interesting for me and the other insolvency practitioners who post on this forum to understand what is going on in the "other side" of the insolvency world. I wonder if the creditor who rejected your IVA will make any form of representations to the OR about his decision regarding your IPO amount. I doubt it!

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

[zoe]

Hi again Melanie.
To be honest i have mixed feelings about it - i still have a moral sense that i wanted to pay off as much as i could and yes i do feel sorry for the ones that did vote for my IVA.
I really went through it all with the IVA as you know and after the rejections i have to admit i got a bit sick of everything.
I have to say that i am glad i made myself bankrupt, i was really upset that the creditor concerned had pushed it so far, i know i made mistakes and i dont think that they were right to in affect punish Michael for it, he knew nothing about the debt and their mods were the final straw and the spying!. Also them persuing me with the CCJ straight away, they must have come off the phone straight after you told them i was not taking their mods and instructed solicitors who acted immediately. I am in a way glad they will get next to nothing! i know that is not in the spirit but i cant help it!!!
I have also arranged with my mum to pay a standing order to her every month from my wages to cover her initial lump sump payment.
I didn't realise creditors have a say in an IPA?
Z
x

Zoe
x
Keep your chin up - everything happens for a reason!
View my blog http://zoes.blogs.iva.co.uk/

[jane.l]

we will both be petitioning for bankruptcy very soon, I am already struggling with the forms, although the man at CAB said he would go through them to check them! My husband works full-time, I only work part-time but just "pool" all our wages and pay the bills! How does the OR work out an IPA then?? Do they work diferently in diferent areas of the country?

Our joint debts are the mortgage and secured loan.
I have a HUGE unsecured loan in my name only with NRock
I have 2 catalogues, about £1500 each
Husband has a NRock credit card about £9000
We each have a car on HP too, Mine cost £10000 and his £8000 (payments up to date with this, but not with the other debts!)


I know we should list joint debts on both forms and each others separate debts but how do I word the Income & Expenditure part, I earn less than half of what he earns? but for example, the rent costs nearly what I earn in a month? so do I have to work out the percentage of the bills that my wage would cover? I could'nt do this, I am absolutely useless at maths, (that may explain why we are in the mess we are in!!!!))

I am sooooo confused!

[ray_a]

In fairness though looking at this it looks like Zoe was trying to make a good contribution to her creditors but one refused and collapsed the situation for her.

No fault on Zoe's part and perhaps creditors must appreciate that anyone who propses an IVA is trying to be serious about their position and responsibilities!

Interesting one
Good Luck Zoe

Ray

[Adam Davies]

Hi
Not exactly a great commercial decision by Zoes creditors is it ? and why such a difference in allowances between IVA and bankruptcy ??
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

[scaredkez]

just to add my bit, synergi were proposing i pay 618 per month, so far the OR has not given me an ipa based on my realistic I+E.

for jane, when me and hubby went BR we just listed the same on both forms we didn't percentage anything we just pooled it all together and showed what we paid out each month, if this helps. it was easier to do that way and i am sure it was easier for the OR too!
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[zoe]

Hi Andy
The difference being i was relying on Michael to top up the payments for my IVA i had about £330 disp.
The other point is an IPA is only half of disposable. The official receiver do allow other expenses not allowed in IVA!!
Z
x

Zoe
x
Keep your chin up - everything happens for a reason!
View my blog http://zoes.blogs.iva.co.uk/

[zoe]

I agree with Kerri
The official receiver does not split according to salary - you just pay half!
z

Zoe
x
Keep your chin up - everything happens for a reason!
View my blog http://zoes.blogs.iva.co.uk/

[BlueShoes]

Hello Zoe
I am amazed at the difference in IVA and IPA amounts!
The creditors who approved your proposal must be pretty cheesed off, knowing they have incurred huge losses, when you clearly had the ability and intention to pay back as much as you could through an IVA.
Was there anything the IVA allowed that the IPA didn't? Were the allowances more generous?
Blue

[scaredkez]

blueshoes the thing with my iva payments was that i couldn't realistically afford them, so glad it was never accepted, you are allowed more expense in an ipa as the job of the OR is to make sure you remain solvent and not cause hardship, they don't want you to go BR again, thats why the amounts are more generous, they do allow holidays as mine said to me everyone is entitled to holidays, in my iva i was allowed £30 per month for clothes for 5 of us which with 3 growing kids is way unrealistic, the OR has allowed me £200 he understands re growing kids and said were on earth did i pluck £50 per month out for 5 of us, iwas allowed to keep my life insurance also under iva i was not.
in BR you put down what you realistically spend each month and they are not there to tear it apart to suit creditors demands. thats the big difference and if i had had a decent IP like mel in the first place, i wouldn't have wasted so much time in trying for an iva, which for me was never really a solution.
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[MelanieGiles]

Don't worry Zoe - creditors have no influence over the amount assessed by the OR. I was merely making an observation in my post.

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