IVA Negotiation?

[welshman2805]

I am new on here and currently have the creditors meeting set for 23/8. on my original proposal my repayments were proposed at £407 / month (33% return). two of the creditors have asked questions and now the IP is proposing this is raised to £776/month. they have cut items such as housekeeping to just £300/ month and taken out our sky pacakage which is our only available service provider (£49/month).
Is it normal to negotitiate with my IP on this?

Also
This is a single IVA in my name only and not my wife however they are taking all of my wifes wages into account and scrutinising all of her outgoings, I would assumed we would be liable for Half the houshold bills etc. and after that her remaining income would be hers?

[kallis3]

Hi and welcome to the forum.

That is a big hike in proposed payments! Not sure about the housekeeping allowance but you are only allowed £22 a month for Sky - anything extra has to be funded by savings from other allowances.

Your wifes income will be taken into account to make sure that you are each paying your fair share into the household budget.

Can you afford the extra payments?

[welshman2805]

I am taking employment in Saudi Arabia and could probaly just about afford them depending on exchange rates etc. I have gone back with some changes and will wait to see what they accept?

Once The IVA is in place if my wife works overtime or has bonus payments are these hers to keep or do they have to be declared? No mention of them in the proposal.

[welshman2805]

I am taking employment in Saudi Arabia and could probaly just about afford them depending on exchange rates etc. I have gone back with some changes and will wait to see what they accept?

Once The IVA is in place if my wife works overtime or has bonus payments are these hers to keep or do they have to be declared? No mention of them in the proposal.

Hi and welcome to the forum.

That is a big hike in proposed payments! Not sure about the housekeeping allowance but you are only allowed £22 a month for Sky - anything extra has to be funded by savings from other allowances.

Your wifes income will be taken into account to make sure that you are each paying your fair share into the household budget.

Can you afford the extra payments?

[welshman2805]

My IP is now saying it is basically accept it or it will fail, Lloyds TSB are the sticking block which accounts for about 25% of the debt £13000, from a Personal guarantee from my Ltd.Co. which went insolvant.

With this repayment rate they are looking at a dividend of 79%. Although the payments are potentially OK they leave no room for any emergencies or currency fluctuations etc.

I suppose the best thing to do is accept and if anything changes take that hurdle when it arises? Any thoughts anybody? I know The IVA is meant to be painful but i really thought it was also supposed to start out as genuinely workable?

Hi and welcome to the forum.

That is a big hike in proposed payments! Not sure about the housekeeping allowance but you are only allowed £22 a month for Sky - anything extra has to be funded by savings from other allowances.

Your wifes income will be taken into account to make sure that you are each paying your fair share into the household budget.

Can you afford the extra payments?

[Shining]

I don't think an IVA is meant to be painful at all. It's for the benefit of your creditors and yourself but we do need to live. You need a good understanding IP to work with you along the journey or it will be a lonely painful journey.

You should have allowances for most things and although we don't live the high life we do live a life.

Think hard before accepting anything, have a chat with another company maybe one of the experts who post on here for some impartial advice as that's a big hike in payments prior to even acceptance.

[Foggy]

Hi Welshman. It is unwise to start out an IVA with payments you could JUST afford. It is a 5 year term and, as we know, all sorts of situations crop up and change over 5 years! You definitely need room to manouvre in the budget.

I echo Lesley's suggestion and advise you to have a chat with another firm (or two) before committing yourself. 79% dividend is excellent and possibly aiming too high in the creditors favour.

[welshman2805]

Negotiating with them now, hopefully a compromise will be reached I have made several comments and brought up several issue's regarding costs etc. It does seem that the two highest creditors have banded together and are pushing for a "full pound of Flesh" which although may sound good to them at the start will be no good if the plan fails. I have also been advised that if I went down the Bankruptcy route my payments would be more like £200 / month for two years which would give them only a 3% return. However Bankruptcy is not really an option as I have joint property with my wife. I'll let you know how it turns out and welcome any more advice.

Hi Welshman. It is unwise to start out an IVA with payments you could JUST afford. It is a 5 year term and, as we know, all sorts of situations crop up and change over 5 years! You definitely need room to manouvre in the budget.

I echo Lesley's suggestion and advise you to have a chat with another firm (or two) before committing yourself. 79% dividend is excellent and possibly aiming too high in the creditors favour.

[welshman2805]

Negotiating with them now, hopefully a compromise will be reached I have made several comments and brought up several issue's regarding costs etc. It does seem that the two highest creditors have banded together and are pushing for a "full pound of Flesh" which although may sound good to them at the start will be no good if the plan fails. I have also been advised that if I went down the Bankruptcy route my payments would be more like £200 / month for two years which would give them only a 3% return. However Bankruptcy is not really an option as I have joint property with my wife. I'll let you know how it turns out and welcome any more advice.

Hi Welshman. It is unwise to start out an IVA with payments you could JUST afford. It is a 5 year term and, as we know, all sorts of situations crop up and change over 5 years! You definitely need room to manouvre in the budget.

I echo Lesley's suggestion and advise you to have a chat with another firm (or two) before committing yourself. 79% dividend is excellent and possibly aiming too high in the creditors favour.

[Pandy]

Keep negotiating welshman2805, don't accept anything that you cannot live with it would be awful if 2 years down you ended up having to go BR because it wasn't sorted now.

[Foggy]

What sort of equity is available on the property you own ?

[welshman2805]

For the purpose of the IVA the property is valued at £129000 and then discounted to by 35% to ~£84000 for a forced sale, at the discounted value the equity totals negative 3605 / 2 = £-1802.

I really would look at bankruptcy but I am sure we would still be forced to sell the property.

All advice / comment welcome as I am getting very stressed over this.

What sort of equity is available on the property you own ?

[Foggy]

The OR in Bankruptcy will retain an interest in the property for 2 years 3 months and deal with equity at that point. At the moment it would likley be still negative and you would keep it. However, as we know the property market is all over the place.

If I were you, I would still have a chat with another firm (or two) to discuss all avenues. Have your current firm discussed BR with you at all ?

[LisaO]

[quote]Originally posted by welshman2805

I am new on here and currently have the creditors meeting set for 23/8. on my original proposal my repayments were proposed at £407 / month (33% return). two of the creditors have asked questions and now the IP is proposing this is raised to £776/month. they have cut items such as housekeeping to just £300/ month and taken out our sky pacakage which is our only available service provider (£49/month).
Is it normal to negotitiate with my IP on this?

Also
This is a single IVA in my name only and not my wife however they are taking all of my wifes wages into account and scrutinising all of her outgoings, I would assumed we would be liable for Half the houshold bills etc. and after that her remaining income would be h

[LisaO]

My IVA started in June, and it was just going to be in my name. But if you are married as I am it made sense to have a joint IVA, as my husband would still need to pay some of the joint overdraft, and still had his own loans to pay for. It was the best decision we have made, as we no longer dread the phone ringing or the postman coming. However I know that there will still be hard times ahead, but compared to what we've left behind, I still think the correct decision was made. Good luck.