www.iva.co.uk

One quick question - I have heard that when submitting your expenditure that when living at home the creditors will only 'allow' £300 as acceptable rent - however what if you pay more? Fair enough it can be submitted but what are the chances of it being accepted?

Im not sure what the max rent is when living at home, but I would imagine if you exceed the allowed amount then the creditors will ask for a reduction unless there is a very good reason why it needs to be above the maximum amount and that the proposal includes this explanation.

Hi Simon
You have to look at it from your creditors point of view.A dishonest person[AND THATS NOT YOU]can put down an inflated figure to reduce their disposible income and proving any different would be difficult for the creditors as unlike renting or mortgage there is no documentation.
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

Hi Simon,

It is certainly true that different creditors have an amount in mind that you would pay parents for living at home as ivoriva explained they would possible ask for higher contributions gaining the extra surplus from this source.

Hope this helps

Kind Regards

Nicola


Finebridge Ltd
22 Laud Street, Croydon, CR0 1SU
0800 180 4212
www.finebridge.co.uk

But you should put down what you actually pay, and this will need to be evidenced either by rent book/confirmation letter or bank statements showing the payments to your parents.

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

Thank you everyone - always useful to take everyone's point of view on these things and as always is much appreciated.

I've commented on this on another thread that i find the situation a bit confusing. OK creditors will understandably want to ensure people aren't taking advantage but really paying parents rent isn't any different from paying any other landlord.

If you pay £400 a month for example before entering into an IVA surely they don't expect your parents (effectively landlord) to take a reduced rent of £300 if they could rent your room out for more than that. The debtor would then have to seek alternative accomodation which although region dependant would be a fair bit more expensive than they were already paying to their parents. Creditors then end up with less, not to mention the fact that surely the IVA has more chance of success if debtor lives within the support of family.

As Melanie says as long as you can prove that what you've stated you pay is actually what you pay then i can't see the problem.

Problems may occur though with some debtors on here who are trying to keep their financial probelms secret from thier parents.