IVA or Bankruptcy decision time

[redmonkey]

Hi all, my first post
Been through the initial stages of an IVA with Thomas Charles
(so far so good). I'm in a situation where I can go down the
IVA or bankruptcy route, going to decide which route this weekend.

I think I would prefer to go down the IVA route but the decision
will probably be based on the answer to the following question
so grateful for any assistance.
(I've searched the forum for the answer but never found a clear answer)

Basically, i'm currently living at home with a parent paying board/
rent. In order to meet the minimum disposable income to enable an
IVA, my board/rent is listed as £70.
I would at some point before the IVA is over, like to rent my
own place (Involving a far larger monthly rent bill). So could I increase my monthly income by the same amount as the increase in rent to do this, or is there more to it.

Thanks for any help.






Politeness is the lubricant of life

[Adam Davies]

Hi
That,s quite a difficult one
On one hand
If you can still maintain your original IVA payments then this should be ok.
On the other hand
You should be trying to repay creditors as much as possible and a pay rise should not be used to fund a bigger,more expensive house unless there is good reason such as children etc

Speak to your IVA provider and see what they have to say.
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

[redmonkey]

Thanks Andy, will do.
Will let everyone know the response when I get it.


Politeness is the lubricant of life

[MelanieGiles]

What do you mean by the fact that your rental money has been put down as £70 to ensure you can afford the IVA contributions? Is this what you are actually paying, as your IP will need evidence of this sum and a letter from your parent that it is actually being received?

As Andy says, your creditors will not be best pleased to see you absorbing all of your payrise into a higher rental payment - so the need to justify your move will have to be fairly sensible.

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