IVA being set up, really worried about it!

[Foggy]

Excellent. Well done. Don't forget, we are always here to help with the journey. Steep learning curve but not so bad once you settle into it.

[kallis3]

Brilliant news! Well done!

[ashbock123]

Well done happy to hear sorted I am waiting to hear back from credit fix my meeting was at 12:55 today when rang at 3 had no other info haven't heard anything since

[dgraffham]

Realising now that applying for an IVA is all about the timing if you want it to go smoothly! My IVA was appvoed 6 days before payday and has left me with no overdraft, no credit cards, literally nothing in a brand new bank account, to last me until the 28th.

I will manage, but had the creditors decision been the first week of the month, how could anyone last a whole month with no available funds? I'm glad I happenned to apply for mine when I did.

Looking forward to a bright future with the IVA

[dgraffham]

I do have a question also.

What 'really' happens with regards to pay increases? The Monday before my creditors meeting my employer had agreed to give me a pay-rise (having asked for one for quite a while) and I told them that I didn’t want it. Explained the IVA situation and that I was happier to stick with my current salary so that it doesn’t affect the IVA.

But how much will it really affect the IVA if I did take it? Will it just mean that my monthly payments will increase, or could the IVA be cancelled if the creditors believe I could now afford to pay everything back in full?

I think it would have been about £200 a month increase, and I could still ask for it, if it meant it wouldn’t affect the IVA too much.

[Foggy]

This will be detailed in your proposal -- assuming you have the usual clauses: A permanent pay rise is taken into account at the annual review following the rise. From the month after the review your payment will be increased by 50% of the pay rise.

Usually, though some IP's have tried to grab the increase right away, the whole increase between the date of the pay rise and the annual review is yours to keep -- it is only takent intto account after the review, with no back dating.

You do need to check what your proposal actually says.

[Foggy]

Realising now that applying for an IVA is all about the timing if you want it to go smoothly! My IVA was appvoed 6 days before payday and has left me with no overdraft, no credit cards, literally nothing in a brand new bank account, to last me until the 28th.

I will manage, but had the creditors decision been the first week of the month, how could anyone last a whole month with no available funds? I'm glad I happenned to apply for mine when I did.

Looking forward to a bright future with the IVA

Most IP's will amend the collection date, as long as the first payment comes out within 28 days of the meeting. I think the IP should check and warn you when they intend to make a withdrawal, but it seems some put little thought into taking a few hundred, with no warning, from an account belonging to a person who has been struggling for some time !!

[dgraffham]

Thanks for that, this is the clause written into my prososal:

7.4 The Supervisor will conduct a review of my income and expenditure every 12 months on or just before the anniversary. In the event that my surplus income has increased, whether through increases in my basic pay or of any routine overtime included in the original surplus calculation, or through a reduction in my personal expenses, I will increase payments into my arrangement in the month following the review by up to 50% of the increased surplus. I undertake to provide the Supervisor with any information that the Supervisor may require to conduct the review and to repay any arrears that arise from any delay in completing the review before the next anniversary of the arrangement.

I am reading this as, I can take a payrise, and I will start paying 50% of the extra I earn to the IP after my first yearly review. So maybe I would be a fool not to take advantage of the payrise being this early into the IVA? My biggest concern is if they deem my income to be too much now and the IVA is cancelled, could that be a possible outcome?

Thanks

[dgraffham]

I also had these modifications applied to the IVA for it to be approved by the creditors. CF told me that none of this applies to me, is anyone able to make sense of it really means, and if any of it could affect me (particularly with the potential pay increase)?

1) The supervisor fee will be equivalent to 15% of all further realisations and drawn proportionally as funds are
received.

2) No Category 2 disbursements are to be charged by the Nominee or Supervisor

3) Variation fees shall not be considered or agreed as part of the arrangement until a variation meeting is called by
the IP. Consideration of the fee required to vary the IVA will be made at the creditor meeting based upon the
debtor circumstances and work undertaken or required by the IP.

4) The Nominee Fee must not exceed £1000. Once this payment has been paid to the nominee the first dividend
shall be paid quarterly as a minimum thereafter.

5) With the exception of the Fees specifically mentioned in Creditor modifications, namely Nominee Fee, Supervisory
Fee, and Category One Disbursements, no other fees are to be taken from this Voluntary Arrangement. This
includes, but is not limited to, Adjournment fees, Closure fees and Failure fees. The only exception to this is
Variation fees which will be agreed at individual Variation meetings

6) The Supervisor shall provide a fully itemised breakdown of disbursements from the first annual report. This shall
show all disbursements drawn within the period and cumulative within the case and shall be provided within all
subsequent Receipts and Payments.

7) The Supervisor is to calculate a revised Estimated Outcome Statement 'EOS' after taking into account any
changes to realisations, fees, liabilities and dividend return as a result of all modifications and claims received. A
copy should accompany the chairmans report and be circulated to all creditors.

No meeting adjournment fee,

[Foggy]

Thanks for that, this is the clause written into my prososal:

7.4 The Supervisor will conduct a review of my income and expenditure every 12 months on or just before the anniversary. In the event that my surplus income has increased, whether through increases in my basic pay or of any routine overtime included in the original surplus calculation, or through a reduction in my personal expenses, I will increase payments into my arrangement in the month following the review by up to 50% of the increased surplus. I undertake to provide the Supervisor with any information that the Supervisor may require to conduct the review and to repay any arrears that arise from any delay in completing the review before the next anniversary of the arrangement.

I am reading this as, I can take a payrise, and I will start paying 50% of the extra I earn to the IP after my first yearly review. So maybe I would be a fool not to take advantage of the payrise being this early into the IVA? My biggest concern is if they deem my income to be too much now and the IVA is cancelled, could that be a possible outcome?

Thanks

No -- as your income increases so does the return to the creditors as well as the fees the IP gets -- they won't be turning that away ! If you manage to repay all of the debt, fees and possible stautory interest before the scheduled end date the IVA will conclude early.

[Foggy]

I also had these modifications applied to the IVA for it to be approved by the creditors. CF told me that none of this applies to me, is anyone able to make sense of it really means, and if any of it could affect me (particularly with the potential pay increase)?

1) The supervisor fee will be equivalent to 15% of all further realisations and drawn proportionally as funds are
received.

2) No Category 2 disbursements are to be charged by the Nominee or Supervisor

3) Variation fees shall not be considered or agreed as part of the arrangement until a variation meeting is called by
the IP. Consideration of the fee required to vary the IVA will be made at the creditor meeting based upon the
debtor circumstances and work undertaken or required by the IP.

4) The Nominee Fee must not exceed £1000. Once this payment has been paid to the nominee the first dividend
shall be paid quarterly as a minimum thereafter.

5) With the exception of the Fees specifically mentioned in Creditor modifications, namely Nominee Fee, Supervisory
Fee, and Category One Disbursements, no other fees are to be taken from this Voluntary Arrangement. This
includes, but is not limited to, Adjournment fees, Closure fees and Failure fees. The only exception to this is
Variation fees which will be agreed at individual Variation meetings

6) The Supervisor shall provide a fully itemised breakdown of disbursements from the first annual report. This shall
show all disbursements drawn within the period and cumulative within the case and shall be provided within all
subsequent Receipts and Payments.

7) The Supervisor is to calculate a revised Estimated Outcome Statement 'EOS' after taking into account any
changes to realisations, fees, liabilities and dividend return as a result of all modifications and claims received. A
copy should accompany the chairmans report and be circulated to all creditors.

No meeting adjournment fee,

It means the supervisors fees are 15% of whatever you pay in ... the nominees fee ( for work done setting the IVA up) is limited to £1k and certain disbusements will not be allowed. The only extra fee they can charge is for calling a variation and this will be set, at the time, by the creditors. It would only affect you if you managed to repay all of the debt, as you would tyhen start contributing towards these fees -- but, in that case, at least these modifications are designed to keep the fees lower.