Questions about my IVA

[Hull_Tiger]

Hi guys,
Everyone here seems to be a fountain of knowledge, I have a few questions:

(1) As detailed in a previous post, http://www.iva.co.uk/forum/topic.asp?TOPIC_ID=7772, I am due a pay-rise due to a new job and my partner has also received her pay-rise. The advisor I have spoken to are still insisting we both have to give up 100% of our increases. So far, I have not spoken to my IP directly as they haven't taken or returned any of my calls, but the advisor claims to have spoken to them. I was already resigned to giving over my pay-rise but dont see why my partner should give hers when her name is not on the IVA. The adviosr says 'it is because her income was included in the proposal'. Can I refuse to accept this?
I dont recieve my first increased pay packet until the end of February and the IP is so far unaware that my partner has received hers.
(2) Can also negotiate the clothing allowance? It is currently £40 a month between two of us. Again the advisor I spoke to has told me that as I accepted £40, it cannot be revised.
In general, can I put proposals in front of the IP providing there is an increase on payments to the IVA? I've drawn up a letter with I&E and it increases my payments from £448 to £547 but am I allowed to do this?
(3) Can an equity release clause be added in after IVA acceptance? At the time of my acceptance, our house was worth £55k with the same in mortgage and secured loans (£42k & £13 respectively) so no equity release was added, just a 6 month extension. However a neighbour has just sold their house (identical 2 bed terrace) for £75k. Will my IP press for equity release if they know this?

Sorry for the long post.
Thanks to you all.

Shaun

£47000, 42p in pound.
The end is in sight (9 / 66)

[Cybus]

1. Could I ask you to check the terms of the voluntary arrangement regarding pay reviews, in both the proposal and in any modifications to your proposal. If there are modifications relating to pay reviews then I am of the opinion that they override the provisions of the proposal. It seems extreme to be asking you to pay over 100% of your pay increases. I belive that in some instances, a debtor can be on a very tight or restrictive budget when in an IVA. It is only reasonable that you be allowed to adjust your expenditure as long as you do not 'Take the Mick'. I would say it is not unreasonable to ask for 50% of the increase in income, but asking for 100%, I personally think is unreasonable.

2. The answer to that is partially covered above. You should be allowed to make adjustment to your expenditure as things do go up in price ... fuel for instance.

3. Short answer 'No' it is either in the proposal (As modified ONLY at the original meeting of creditors at which the arrangement was approved) or it is excluded. I assume that the extension of six months to your arrangement was made so that you could make an additional six contributions in lieu of there being no equity in your property. As I say, unless it was stated anywhere in the proposal or modifications that the property is to be included, thew property is to be excluded. You can of course volunteer to introduce equity from your property into your arrangement. You need to check first of all the clauses in the proposal or the modifications put forward and see exactly what they say about the property.

Tell it like it is.

[pixie]

Hi
Sounds like your advisor went to the same school as mine!
I had a bit of negociating to do when I got a pay increase last November. Mine was a bit more complicated as I had a promotion and the bonus scheme changed.
My initial new i & e was rejected bar £10. My expenditure was set quite low originally in order to propose the IVA and with a promotion came more associated costs for work.
I had to fight what was left of my little corner to get a fairer reveiw.
One of the 'allowances' I wanted to increase was clothing. It was set at £20 which was too low. I successfully argued that due to my new position I needed suits for work and as a big girl I couldn't buy clothes on the high street. I now have an 'allowance' of £50 which I'll need when the diet kicks in!
All I can suggest is that you put forward your best arguement. In the end mine worked out much better for both me and my creditors. If I don't earn the bonus it'll be a different story though!
Good Luck

Pixie

[MelanieGiles]

With regard to your own pay-rise, you should compile a new statement of income and expenditure and submit this to your IP for their attention. I suspect that you will end up paying the full amount, and I would agree with this to be honest. However, your partner's increase should not be taken into account, and you should fight that one until the end.

An increase in clothing is more than reasonable - personally I would suggest £40 for each of you.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[johnt]

I would have thought your partner's increase would certaily not be included. They may ask what contribution she makes to the house hold expenditure, thus limiting your outgoing, although this has to be proved via bank statements and so on.

[Hull_Tiger]

1. Could I ask you to check the terms of the voluntary arrangement regarding pay reviews, in both the proposal and in any modifications to your proposal.

I can't find anything at all to do with pay increases only windfalls and unexpected income. Can I assume that 100% of the increase will be required?

3. Short answer 'No' it is either in the proposal (As modified ONLY at the original meeting of creditors at which the arrangement was approved) or it is excluded. I assume that the extension of six months to your arrangement was made so that you could make an additional six contributions in lieu of there being no equity in your property. As I say, unless it was stated anywhere in the proposal or modifications that the property is to be included, thew property is to be excluded. You can of course volunteer to introduce equity from your property into your arrangement. You need to check first of all the clauses in the proposal or the modifications put forward and see exactly what they say about the property.

Tell it like it is.

You assume correctly. Again I cant find any mention of including the property in the agreement but the equity release clause is in the rejected modifications in the Chairmans report. Again, is there any chance of this being added in? I am hoping not.
Can anyone shed any light on what this modification means:

(v) The Chairman is to have the discretion to use this proxy to vote in favour of any other modification which in his opinion does not have detrimental effect on the proposed dividend to all creditors or the overall sustainability of the proposed voluntary arrangement. If the Chairman is of the opinion that any modification has a detrimental effect he shall contact Grant Thornton for specific instructions or this proxy shall count as a rejection.

Another development this morning is that one of my creditors has this morning sent me a letter threatening a charging order if I don't 'cough up'. I have rang them and they are claiming that as they voted against the proposal, they are not included in it! I nearly spat out the tea I was drinking at the time. Needless to say, I am passing this info onto my IP.

**EDIT - typo.


Shaun

£47000, 42p in pound.
The end is in sight (9 / 66)

[Cybus]

1. Could I ask you to check the terms of the voluntary arrangement regarding pay reviews, in both the proposal and in any modifications to your proposal.
I can't find anything at all to do with pay increases only windfalls and unexpected income. Can I assume that 100% of the increase will be required?

I would suggest the same as Melanie above and suggest you submit a revised Income and Expnditure to your IP. 100% of a pay increase is unreasonable.

3. Short answer 'No' it is either in the proposal (As modified ONLY at the original meeting of creditors at which the arrangement was approved) or it is excluded. I assume that the extension of six months to your arrangement was made so that you could make an additional six contributions in lieu of there being no equity in your property. As I say, unless it was stated anywhere in the proposal or modifications that the property is to be included, thew property is to be excluded. You can of course volunteer to introduce equity from your property into your arrangement. You need to check first of all the clauses in the proposal or the modifications put forward and see exactly what they say about the property.

You assume correctly. Again I cant find any mention of including the property in the agreement but the equity release clause is in the rejected modifications in the Chairmans report. Again, is there any chance of this being added in? I am hoping not.

If it is a rejected modification, the property is excluded and cannot retrospectively be brought in.

Can anyone shed any light on what this modification means:

(v) The Chairman is to have the discretion to use this proxy to vote in favour of any other modification which in his opinion does not have detrimental effect on the proposed dividend to all creditors or the overall sustainability of the proposed voluntary arrangement. If the Chairman is of the opinion that any modification has a detrimental effect he shall contact Grant Thornton for specific instructions or this proxy shall count as a rejection.

This is not a modification. There is nothing to worry about with this. It appears that the chairman has exercised his discretion in rejecting a modification proposed by GT. In rejecting the modification, he has rejected the proxy. On the face of it, he appears to have done okay if you have your property excluded

Another development this morning is that one of my creditors has this morning sent me a letter threatening a charging order if I don't 'cough up'. I have rang them and they are claiming that as they voted against the proposal, they are not included in it! I nearly spat out the tea I was drinking at the time. Needless to say, I am passing this info onto my IP.

It's probably just one of the woodentops who is doing what they are told. They ARE bound by virtue of Section 260 of the Insolvency Act. Your IP will confirm as such. You should have nothing to worry about in this respect. Just contact your IP ASAP




Shaun

£47000, 42p in pound.
The end is in sight (9 / 66)

Tell it like it is.