More Q's have sprung to mind after my 30 or so Q's in my last post.
Thanks in advance, here goes...
1. Could anyone copy and paste the guidlines for a monthly budget that IP's normally adhere to? I know each of us have special needs such as myself with a lagrge train fair each month... but a budget for some one in my circumstances would be useful.
Me and my parnter live in a 2 bedroom flat, soon to have a baby son. So there will be 3 off us. My parnter will not be need an IVA so just me. Our earning ratio is (Me) 80/20 and the mortgage is soley in my name. I need a car/bike just for the odd trip to work out of hours but primarily take the train.
Really im just after the basic budget stuff such as how much money is allowed for food to feed 2 adultss and a baby, etc. Gas, electric etc etc...
2. Melanie said people repay back x in the pound due to what they can afford but from reading the internet, i guess you are have more chance of getting an IVA the more you pay back in the pound... Can any one give me real life experiance on this? Such as how many pennies they are paying back in the pound?
3. How much are you allowed for hobbies per month? i play golf and that's 5 pound a round where i go. Again real life experiances would be handy?
4. i have a joint loan with my parnter, if my IVA paid an amount towards this loan does that mean my partners payment would be exactly half?
4b. If my partner wanted to get out of that loan... Would my parnter just have to pay her half back?
5. Again real life experiance, anyone on here been refused an IVA? And can they share the reason why?
Also Melanie Giles will you be retiring in the next 5 years or moving abroad? lol as i dont want to be left hi and dry. lol
6. I have just applied for a COOP bank account as my backup account, do you think i will get approved? I have lots of debt and but am currently making all min payments... Reason for looking at an IVA is all my promo interest rates are coming to the end and all my other card companies have lowered the limits so i am forced into a situation i can not transfer balances... GRR.
7. As i said i am currently making all min payments, so should i start missing payment to get the creditors attention? And put me in a better place to get an IVA as they will be worried?
The CCCS produce a list of acceptable expenditure,but the best thing to do is put it all down and then your chosen IP can advise as to whether it is enough, too much or not allowed.
Melanie is right that it is what you can afford to pay, and some people do have IVA's accepted for quite low dividends. Obviously, the more you can pay back to your creditors the better.
I doubt you will be allowed to play as much golf as you are probably used to - you can have a budget for hobbies, but it is quite low.
With the joint loan, even though it would go into the IVA, your partner would still be chased for the whole amount as you are jointly and severally liable for it. She would expected to maintain the whole payment.
People have been refused IVA's and the reasons vary.
You should be fine with a Co-op account, they are very IVA friendly.
You don't need to miss any payments, it will make no difference to your creditors, will stop them from hassling you and makes no difference to whether you get an IVA or not.
Believe me - they won't be worried![:D]
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
1 Sorry we cannot publicise the CCCS guidelines, as CCCS say that this encourages people to fib about their expenditure and say they spend to the level of the allowances. Once you have have instructed an IP to act for you, they will be able to share this information with you, and you need to put down what you spend not what someone says you are allowed to spend. Your IP will guide you in this regard.
You will need to share the combined household expenditure in the same ratio as your earnings - so if you earn 80% of the total income you can expect to pay the bills in the same percentage.
2 It is not the case that an IVA is easier to get accepted if the dividend is higher. The dividend is driven by your affordability, and I have done IVAs ranging from 6p in the £ to 100p in the £ including statutory interest in the past.
3 You will be allowed £32 per month as a family of three for Sports, Hobbies and Entertainment under CCCS guidelines.
4 No - your partner would be responsible for maintaining the contractual repayment at its full amount, unless you came to some agreement with the lender which most people do in this position.
She would be held responsible for the full amount of the debt, under the principle of joint and several liability.
5 IVAs are rejected for a wide variety of reasons, but at least 80% of the proposals which are put forward are actually accepted. If the right proposal is put forward by the right IP firm, you ought to stand a very good chance of success - so long as you are fully committed to wanting to make the best effort to repay the debts.
6 No I am not! However all my appointments are taken jointly with another IP in my practice who would take over if I left the firm. As I own the business, there is little likelihood of this - and I am far too young to retire!
7 That will be down to the decision of the bank - but many forum posters have managed to get accounts with the Co-op.
8 How are you managing to maintain your payments to creditors if you are in financial difficulty?
Hi Michael
You will need to factor in repayments for your wifes joint debt into your expenditure. Hopefully your wife will be able to agree a reduced payment.
You have to be ready to make sacrifices in order for an IVA to work and for many it will be no holidays and limited social life, however the fact that you will have a five year end date to be debt free will make any sacrifices that you have to make well worth it.
Many people that enter into an IVA have been upto date with their repayments, however they have been using credit to pay credit each month and are actually insolvent. Are you in a similar position ?
Regards
I am almost insolvent. When these low interest rates on credit cards finsih i will struggle to pay back debt, just pay back interest month to month. Soon to be a dad i am now making a stand. I am willing and also want to pay back as much as i can to A secure the IVA and B to try and be hoest and pay back creditors as much as possible. My parents would frown on me doing this as i come from a family that expect to pay for what they have. But given the fact i have a family to look after and debts that have been building for some 11 years i need to look after my family...
As you may have gathered i like to know all the details before going into something and the fine details at that.
In hoesty i could go cap in hand to my parents to bale me out with a large family loan but i do not want the shame and fill it is my problem to solve.
I do not want my parnters credit history affected as it is A not her probelm i am in this state and B it is reassuring to know one of us could get credit for emergencies.
In summary i will be a difficult/long winded clinet to take on by an IP but in reflection i will be honest and do everything in my power to insure payments are met for the full term.
Apologies for the retire comment, working in the city of london i know of a number of people that retire early due to large earnings
I am currently meeting all min payments by A not spending and B taking back, by cash, any payments to credit cards and topping up my current account. Which is going to be harder when special interest rates end!!
Could I just say that noone could be more long winded and pestering than my husband! I have been just as bad and my husband was recommended to go to Melanie Giles one of the IPs who posts on here. She has the patience of a saint. Even though she has submitted his proposals he still worries and asks questions - always answered.1 David Mond another IP and Andy also have shown great patience and expertise in answering the questions we post on here. Just thought I would let you know that. J
I would ring two or three companies up before making up your mind. You will be in this relationship for 5 years so you need to make it a happy one.
Visit www.iva.com for a list of companies and reviews. You will get free and impartial advice as to all the solutions open to you, and no one will try to force you into signing up for anything unless you are sure.
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
My husband's propsal is 37p but he has been told firmly by Melanie and David Mond NOT to concern himself because the percentage is not what is important. Melanie or David Mond can tell you precisely what they told him. J
I am not offended - I would love to retire, but am not in that fortunate position right now! I also think I would very soon be bored and want to be back at work!
If you are barely covering your contractual payments, an IVA will not be available to you as you will not be deemed to be insolvent, but the arrival of the baby could change all of that with the added expense a little mouth brings.
Let an IP go through your income and expenditure with you, so that you can get good advice about the options available to you.
I am paying 31p in the pound and my husband is paying 38p in the pound, so on the joint loans we are making quite a good return.
However, an IVA is about affordability and most creditors are happy to accept these sorts of figures.
As Melanie says though, there are some which have gone through on a very low dividend and others where people pay back 100%.
It's down to your individual circumsances, which is why you need to take professional advice.
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
I fear i will not cover my contractual payments in the coming onths as interest goes up i will have little cash to reborrow off cards to top up my current account. Also i will be incuring the cash interest rate of borrowing cash off credit cards.
In short if i sold my propert tomorrow and rented i would have 90K's worth of debt and with a combined income of 3k per month, with interest rates on average of 20 percent for 90K and rent and etc to pay i think i would be seen as insolvent?
Some maths to be done there me thinks.
Time to talk to Mel as the all seeing IP.
Going to put on thinking cap and get debt spreadsheet up to date to present to Mel. Gulp.
Melanie is very very good and her experience of life and her advice which stems from that goes well beyond finance. My husband and I have benefitted from it. Good luck and best wishes to you. J
