www.iva.co.uk

I have just agreed my draft proposal with my IP. Feel drained and have distinct impression my life will cease for five years whilst I live on subsistance levels with no cash for the kids or ourselves. Is this normal? Does it get any better?

Hey StoneyB, welcome to the forum. Have you made sure that you have sufficient funds to live on? It will be hard, but you shouldn't agree to any figures that you feel are unrealistic, as that will mean that you won't be able to stick to them and your IVA could fail. I wish you luck for your creditors meeting, stick around and keep posting as you'll get good advice and support here.

stoneyB wrote:

I have just agreed my draft proposal with my IP. Feel drained and have distinct impression my life will cease for five years whilst I live on subsistance levels with no cash for the kids or ourselves. Is this normal? Does it get any better?

Could you have carried on the way you were?? Thats the real question. You have done the right thing in attempting to sort out your finances,believe me. There will be hard times ahead but the thought of getting back on the straight and narrow is all the incentive you need.

Hi and welcome from me too.

Life will be harder in an IVA, you won't be able to buy on impulse or make any big purchases unless you save. You will be able to have a life though, and in 5 years you'll be debt free. You'll also have the creditors off your back.

As Viki says, make sure you have sufficient funds to be able to live. If you don't, your IVA stands a chance of failing before it gets too far down the road.

I have a good income but the payments will reduce lifestyle considerably. Thats fair enough, my fault for borrowing too much (although 30% interest charges on credit cards didn't help) I can't do bankruptcy and the IP is sticking to guidelines like glue, so I really have no options. I will struggle to keep it secret which I was the main attraction of an IVA to me.

stoneyB wrote:

I have a good income but the payments will reduce lifestyle considerably. Thats fair enough, my fault for borrowing too much (although 30% interest charges on credit cards didn't help) I can't do bankruptcy and the IP is sticking to guidelines like glue, so I really have no options. I will struggle to keep it secret which I was the main attraction of an IVA to me.

Who are you trying to keep it a secret from,if you dont mind me asking?
Its just that you may find you need to rely on others as a shoulder to cry on/leaning post at some point during the term of your IVA,going it alone,while not impossible may make you feel very alone(although this forum can help with that a little bit).

Mostly at work but friends as well. I am so ashamed that I got into this mess. Work is worse as I'm supposed to be so well organised and responsible etc.

Is there any specific reason you can't go bankrupt? If not, I would give it serious thought if you feel you will struggle in an IVA. You could do a debt management plan, but that will take much longer to pay.

Your lifestyle will be reduced, but that's a small price to pay to be debt free in 5 years.

Work and your friends wouldn't need to know that you are bankrupt unless you told them.

You have to be really careful that you are not jumping from the frying pan into the fire. IVAs are meant to bring relief to your finances, nor further financial burden. If you are having doubts at this stage, it may be worth having another look at the expenditure figures - or even taking a second opinion as to whether they are sustainable in the long term.

Trouble is, I was originally told around £550-£575 per month which I thought was fair. I signed the papers and after several long talks with the IP drafter he comes back with double that. Whern I object he justs keep saying it's the guidelines and the creditors won't accept if he puts in more. None of the figures relate to actual circumstances. For example, I have been "allowed" a contigency of £50 a month which is meant to cover house maintenance, opticians, dentists and entertainment for a family of 5. My cooker broke yesterday -6 months contingency in one hit- how realistic is that?

Hey stoneyB, I don't that is realistic at all. You should have a much higher allowance for the things you have mentioned. I would take a second and maybe third opinion, it's not too late.

It's not too late for you to change IP's if you are not happy.

Give another couple a call, and see what they say. It will cost you nothing and you may find that they are better.

Check out www.iva.com, there are lists on there.

Alternatively, Melanie, who has been answering your posts, comes highly recommended. Her details are in her signature. Give her office a ring and see what they say.

Hi Stoney b

I am a little concerned by what you are saying... If you were a friend of mine I would say STOP, right now. IVAs should be individual and not guidelined to make you actually pay double the amount you can actually afford to pay. You cannot sign this thing if the figures dont relate to reality. It seems from what you are saying that they are doing the individual bit to suit them not you. It should not be like that, you actually deserve better than this.

It also seems to me, and I am trying to speak here as if you were my friend that they are playing on your sense of guilt and shame about your debts. STOP right now, stop blaming yourself and feeling guilty, we all make mistakes, we are not bad people. You like most of us here have fallen down a hole and are trying to do something about it. That shouldnt mean someone else squeezing you like a tube of toothpaste. Please get a second opinion from someone who would actually arrange an IVA based on your individual circumstances. None of us expect to be living in the lap of luxury but on the other hand we shouldnt be expected to not have basic or human needs for 5 years.

Take care now.

Love

You are being very badly advised, and I strongly recommend you taking a second opinion about your income and expenditure figures before you go ahead - if only to get your existing IP to change them for you. For a family of five you ought to have the following monthly allowances:-

House maintenance - I usually suggest £30, but dependent upon your circumstances
Medical expenses - £10
Dental and optician - £14
Sports, hobbies and entertainment - £54
Sundries and emergencies - £51

So I would say that the figures you ought to be allowed are over £100 more than you have been quoted, and this is based on CCCS guidelines.

Without being cynical, it sounds to me as if the firm who are currently advising you are trying to make an IVA fit a certain payment figure. Enormously dangerous, and destined for ultimate failure in my opinion.

Please take a second opinion. If you are being told what allowances you can have by the IVA company you will most likely have problems further down the line. When I went into an IVA the figures fitted the IVA rather than the other way round, and it failed very quickly.

While no-one in an IVA will be living in luxury, you should be able to live relatively comfortably.

Good luck x