Please advise .Many thanks.

[titan]

Hi, am putting off bankruptcy by going for an iva with a firm.My debt is approx £32,000
and they want £670 FOR 60MTHS which equals £40200??!!! Please advise asap.Many thanks.

[MelanieGiles]

Hi titan and welcome to the forum

That is unlikely to be acceptable to your creditors as if you can pay the debts in full they will want you to pay the money directly to them on a monthly basis amd thus avoid paying IP fees. Of course the downside to you is that the creditors will continue to charge you interest.

If you can afford £670 per month, and you enter into bankruptcy proceedings, you will be required to make ongoing payments for a maximum 3 year period.

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

[titan]

Thanks Melanie for your response to my last post. Can I give you more info and hope for more advice....it's making me ill!
Am divorced with a 18yr.old who is dependant at the moment, have no assets, in rented home.Am a nurse on 40hr contract but regulary work 54hrs. a week...not guaranteed.

With overtime take home £1860 every 4wks.Owe £32K to 5 creditors, essential payments £850, min. debt payments £900. friend of a friend is finacial advisor....written to creditors asking for an informal arrangement....no response yet. In past contacted Blair Endersby re:iva...they got in touch again recently. 1st. agreed £309 pcm, then a wk later said £607!! Cant live on £100 a wk.Am seeking your help...f.a. said I should go bankrupt but got a clause in tenacy agreement that really scares me ... have no rent arrears and agents say am the best tenant.Have lost trust and faith in B.E. for many reasons.

Your professionalism is top notch on this site and I would value your opinion...what do you reccomend? Please help me cope and stay sane!Do you need anymore info to advise me? B.E. are getting really pushy and make me feel intimidated.I need a second opinion! Thank you... and what a wonderfull site this is! Heather

[MelanieGiles]

Hi again Titan. I am sorry that your problems are affecting your health, so let's see if we can help.

The first step in all of this is not to listen to someone telling you what your disposable income is, but to work it out yourself. After all only you know truly what you spend. When I deal with clients, I always get them to provide me their own details firstly - and then give guidance if I feel that certain areas will not be acceptable to creditors. How this IP can say one minute £390 and then £607 is very curious.

Why not use the form on my website as a guide to work out your true disposable income - before taking account of unsecured creditor repayments. I suspect that the figure will be somewhat lower than £607, and if it is £309 then an IVA can still work for you.

You could declare yourself bankrupt, but I would rather see your true position before you make that decision. Absolutely do not let anyone push you into making any decision until all of this is thought through propertly.

I will be on line all weekend to give you further advice as necessary, but please firstly work out a comfortable figure that you feel that you can realistically pay for 5 years if you still want to pursue an IVA as an option.

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

[titan]

hello Melanie, thanks again.
have to go to work for 14hrs.and will do what you suggest tomorrow. Thank you.

[Adam Davies]

Hi Titan
I,m glad that you have found this site.
Rest assured that you will be given the best advise and unlimited support from people who are in the same boat as you
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[Skippy]

Hi Titan, good luck with finding a solution. Please don't agree to pay something that you are not comfortable with. I made that mistake and my IVA failed after 4 months and I am now bankrupt. If you follow Melanie's advice you won't go far wrong.

Onwards and upwards!!!

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

[freelili]

Hi Titan

That(lets double the amount) company you are with sound dodgy I would walk away and talk to a company on this site, People in the position you are in are often desperate and will agree and cling to a 'solution' with both hands. 5 years is a long time, so shop around.

good luck

LILY

I asked God for a solution and have to live with his reply.

[.AADD]

Good morning Melanie and everyone else.
I have filled in the form as you suggested Melanie and look forward to hearing from you.
Thank you all so much for your support, it's so uplifting. By the way, I made a typing error in saying £607....it's actually £670 they want. Thanks again, this is a life saver!

**message from admin
So sorry titan, the recent malfunction assigned some of your postings to someone else who has now been deleted

[.AADD]

I now seem to appear as "will" ! Don't know how that happened??? I am Titan.

[rogers]

With regard to Melanie's comments about working out your own disposable income, the IVA company I have been talking to about applying under the scheme has been telling me that they are limited in terms of what they can 'allow' for whatever monthly expenses I may have. That seems reasonable, however I am not sure to what extent this is dictated by law, common practice or simply the need to 'cap' certain expenses to make room for their fee (I have not yet discussed fees but I believe the typical 'fee' over 5 years to be in the region of £3000?). So, for example, the maximum monthly 'allowance' I have been quoted for clothes is £30, food and household goods is £160, and entertainment (which they say they don't actually have to include at all) is £40. They only accept things that involve actual monthly outgoings - so when I mentioned the possibility of dental fees this was turned down - and stuff like haircuts has to come within the 'food and household' allowance. Does all this sound about right, or should I be pressing any harder for more flexibility on these sort of things, the better to address my needs? Many thanks in advance.

[titan]

hi rogers, i was quoted £180 for food/toiletries as a single person...they think my 18yr. old can live on fresh air.£40 for clothes, £50 for incidentals. dental and hair were separate..not a lot mind, but it all adds up.If i can help....I'm here.

[Adam Davies]

Hi Rogers
Quote "(I have not yet discussed fees but I believe the typical 'fee' over 5 years to be in the region of £3000?)"
The IP fees are normally in the region of £8k plus vat ,so nearer 10k.
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[MelanieGiles]

Rogers

Do not let anyone tell you what you can and can't spend. It is what you actually spend that matters. Obviously the expenditure has to be reasonable, but the figures you have been quoted are ridiculous.

This forum is full of postings from people who have been told what to put down by their IPs, to later find that they cannot afford to make the payments. If you want to post a list of your expenditure on the forum, I can perhaps give some further guidance as to what I see creditors regularly accepting in my practice.

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