Hi everyone
i am really worried now as MBNA do represent over 25% of our debt.
We were told that they can be arkward. We have our propsal and it is set out that if we were bankcrupted then basically there would be 0 dividend after all fees etc were taken into account.
I know they apply their 10 year criterior to DMP's but even with that on one of my husbands debts with them they did eventually pass it onto NCO and my husband paid what he could then afford.
Any help would be greatly appreciated.
Thanks
Hi karenanne23 - Your Nominee (IP) would not be putting forward your proposal if he/she does not think it has a good chance of getting through.
What are your debts - list them individually with amounts due to each of them. What are you offering in your proposal?
Don't worry - let me see the information and I or another expert on this Forum will get ack to you.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
David, i will post debts etc later. They are horrendous so i am really embarassed.
One thing though is thatt i am a bit unhappy with our IP as they have made a few mistakes on the proposal.
The biggest one being that they have calculated my husbands tax on his gross income 9 he is self employed) and not his net profit.
I thought to work out the tax , you take new profit less personal allowance and then tax will be 20%.
It makes the proposal look better for us in terms of what we have to pay monthly but the figure is £200 out from what was originally calculated at our interview
I would have thought someone should have checked this before sending it too us. I will know have to break the news to hubby that the figure is wrong.
All this is causing me so much stress[:(][:(] so i am so glad i have found this forum as everyone is so supportive.[8D]
karenanne, don't be embarrassed by your debts, we have all been there and most of us have the most horrendous figures.
Don't accept the proposal if it is wrong, the last thing you need is to be struggling to pay as soon as you are approved.
You need to give your office a ring tomorrow and explain this to them.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Imperative that you don't accept wrong figures. Also you have to take into account not only tax but nic on your husbands self-employed income. Post all your figures here and I will (or another expert will)try and advise you appropriately. Don't worry 40,000 entered into IVA's in 2007 and probably 35,000 in 2008!
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
My husbands net profit is 24k , gross 35k, but they are allowing £470.00 per month Tax which is well over what i beleive it should be.
Will get back later with the list of creditors etc as have to cook dinner so will have more time later this afternoon.
We got in this situation as my husband was a stockbroker and before my son was born i wroked full time also in London. I went part time after my son was born and then a year later my husband was made redundant so our income went down by almost 2 thirds when he bacme self employed[V]. Hubby tried to start his own buissnes so got into debt and then the rest is the classic of robbing peter to pay Paul.
One thing to please bear in mind is that we experts can only give very general advice on the forum, as we do not have detailed knowledge of your case - and therefore it would be wrong to rely on anything too much. If you are unsure as to whether your IVA has been put forward properly, personally I would take a second opinion from another IP - and preferably one who specialises in self-employed cases - as many of the larger outfits do not. Remember you have to spend the next five years with whoever you choose, and that is a relatively long time!
As David says it is vitally important to get the figures right from the outset. If you employ an accountant, see if you can get them to go over the IVA proposals with you to ensure that they look reasonable and achievable. And have you actually met your IP, or a senior member of his/her staff - as this is a legal requirement for all self-employed clients, and in my book is absolutely essential. OK - it might mean that you have to take a day off work, but it will be worth it in the long run to get things right.
Are you saying that your IP is suggesting that you deal with £200k debts from contributions of £480 per month - or are there assets also to be realised to top up the offer - for instance equity in a property to be raised during the final year?
And try and split your debts between the two of you. Are you both proposing IVA's? As Melanie says - seek another IP's views. Visit www.iva.com where you will see reviews on several practitioners.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Hi
we are both propsoing IVA's.
My debt is 128k, hubby is 72k.
They are propsosing we pay £576 per month and relaise 30k equity in year 5, however when we originally worked out the suplus income it was £753.00. I can see where the difference is as i am sure the Tax calculation is incorrect.
Calculating your forward tax liability is a relatively simple calculation, that most specialist IPs would have worked out in a jiffy!. You also need to make sure that the IP has calculated your current liability for 2008/2009 (which can only be profected forward as the tax year does not end until 5 April 2009) and included this as a claim in the arrangement.
Your monthly tax provisions from now until 5 April 2009, should be included as additional contributions up to that point as well, so do check that the proposal provides for this, as you will not have to pay any tax directly to HMRC until tax year 2009/2010.
From the very bare facts you have presented, it looks like you do have the makings of good IVAs, but we obviously cannot advise further on this forum.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Karenanne I just wanted to say please don't accept the proposal if the figures are incorrect. This happened to me, and I was told not to worry about it by the IVA company. My IVA then failed as I was £200 short a month which is a hell of a lot of money to try and save from other allowances.
Speak to your IP on Monday and tell them you want the figures recalculated so that they are correct.
