IPA-how much?

[BlueShoes]

Hello.
I have looked at the table for calculating the percentage of your disposable income the OR would expect you to contribute to an IPA in bankruptcy.(a much earlier post)
However, I have also noted a few posts mention that the OR was more generous regarding reasonable living costs under bankruptcy. Can anyone tell me what areas were viewed more/less leniently compared to their proposed IVA contributions. I understand holidays are allowed for in the budget, which isn't under the IVA, but otherwise not sure how they vary.
Our IVA proposal will probably be around £900 a month, which will be fairly tight for us to manage due to high outgoings (mortgage, petrol etc) This will offer a return of around 42p/£.
Would the OR expect less than this, and if so by how much?
Thanks
Blue.

[Skippy]

Hi Blueshoes, if you have a look at my blog I have posted my IVA allowances and IPA allowances. Some of them are similar, but the difference is that all of your surplus income isn't taken. Although I'm not rich by any stretch of the imagination, I am now comfortable.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[BlueShoes]

Thanks Skippy,
Makes interesting reading.
What concerns us about the IVA is that the margins will be very tight, even before they tinker with our proposed expenditure list (which I am sure they will)
We do not want the IVA to fail (assuming the proposal is successful!) but we are both a little daunted by the fact that there is no margin for error/disaster/unforseen expense.
However, we are equally daunted by having to consider bankruptcy, although reassured by your blog and posts that it wouldn't necessarily be the ordeal we imagine it will.
My worry is that if the creditors want us to increase our proposed monthly payment by shaving off an odd 10% here and there, our IVA will surely fail, and then we will be back to square one, along with all the associated stress and tears.
Thanks
Blue.

[stam]

Hello Blue,
We share the same concerns as you. We have delayed our IVA propsal for now and have entered into a DMP in the short term. I think that sometimes it is easy to rush into things especially when creditors are breathing down your neck.
The last IP we spoke to advised us that as NR had the casting vote our proposal was unlikely to be accepted at the moment. They referred us to a Debt Management company who have been great, really helpful and supportive. We are finding the DMP ok as a holding measure, but its still early days. The monthly payment is manageable and we feel at the moment it's a better alternative for us than bankrupcy. It's given us time to take a deep breath and really think about all our options.( the few that are still left!!) If our creditors refuse to freeze the interest while we are in the DMP we will have to rethink as bankrupcy may be in our best interest

I read with interest your posting on FTVA, we too have looked at this. I think if bankrupcy is inevitable I will try and go for this option. As long as you are prepared to face the consequences if you fail I personally think its worth a shot.
I have posted on the subject of FTVA, the replies I received seemed to suggest that an FTVA was rarely granted epecially if you have proposed an IVA that was rejected . Do seek clarification of this as I am not an expert just somebody who has debt [:)]

Good luck

[scaredkez]

stam i used a DMP before i went BR and found most of the creditors quite good for freezing the interest but was told it would only be for a short period, i hope all you guys that are proposing DMP's are using companies that do not charge for this service, ie they are not taking a percentage of what you pay.
some creds tried to play hard ball and asked me to set up an arrangement outside the DMP, do not do this, no matter how scared you are!!
its really hard to explain to people that BR is not as bad as you think, and the allowances on your I+E are so much better as there aim is to keep you solvent so you do not go down this road again, hope this helps you all.
kerri

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

[stam]

Thanks for the advice Kerri

BR is something that we have to consider its so helpful to read postings and blogs from people who have been through it.

We are paying a small percentage to the company arranging the DMP but to be honest I expected this.

No real hassle from the creditors as yet except lots of phones calls, about 15 today. I am prepared for the hard ball tactics that I am sure will come next. The DM company has said that the creds will get fed up and stop ringing soon. (we shall see)

The DMP is a holding measure that has really given us time to think it all through clearly. When this situation came to a head I was really stressed and could easily have done something on the spur of the moment I might have regretted later.

I will eventually end up going BR if the interest is not frozen on my debts for the duration of the DMP. If this happens no one will win, we have little equity in our house and no assets. If I am made bankrupt I will try for the FTVA (I'll keep you posted on this one)

I am keeping things in perspective though, after all worse things can and do happen.
[:)]