Thanks Micheal. I was given allowances that you mentioned so I will clarify with my IP that they can be retained each month (when not used) against any unforseen costs.
I came into this world with nothing and still have most of it left!
Ask your IP to let you know whether the £50 is in excess of normal CCCS based maximum guidelines. In my experience Northern Rock rarely attack guideline or fully justified expenditure, and if they do they should justify why. If you have petrol receipts to prove that you spend £245 on fuel, these will largely suffice, so it is rather curious they are asking for such a large increase - which you should not agree to unless you can see a way of paying this comfortably. Six years is a long time to live a miserable existence.
I'm waiting for a phone call back today from IP. As far as I'm aware all our I&E are within the guidelines, infact some are lower! I think that if Northern Rock don't drop this £50 then we'll have to do BR. There is no point in starting an IVA that will prob fail. I really wanted to pay back as much as we could to the creditors, but if its going to put us in an unaffordable position for 6 years then its not worth it
I will be very interested to know whether NR wish you to reduce your expenditure from usual guideline figures. Could you post details of the results of your IP's discussions with them please.
Kazza07 hope things work out for you. NR intially voted no on my IVA but with pressure from my IP they eventually said yes with a number of mods. Some of the mods where expenditure amounts. They wanted to reduce food and housekeeping from £300 to £249. Also they challenged some public transport costs.
I eventually agreed but am lucky I can make up the difference with overtime until hopefully I can get a payrise to cover my shortfall.
Please consider very carefully your next step, as others have said starting your IVA only to go bankrupt later will just drag on the uncertainty and worry. Going BR now will at least get it over with and you can move on.
Northern Rock AGAIN!!!! Why cant they be forced to be more reasonable? Surely, they are not doing anyone or themselves any favours with their petty 'criteria', Kazza's experience with them seems to be a prime example of how NR would prefer to shoot themselves in the foot and settle for nothing than accept reasonable, affordable amount of money from somebody who is trying to make the best offer they can to pay back some money! Why should anyone be expected to have to scrimp & scrape for 6 whole years, worrying whether they can afford to get to work! The tax payer helped them out of a hole for goodness sake, lighten up Northern Rock!! Kazza, I think if I were in your shoes I would be inclined to look at BR, it sounds as if NR have far more to lose then you if your house is negative equity! Sorry for the rant guys. Just wait will they give me a hard time when my creditors meeting comes up in a few weeks, I will tell them to get stuffed if they suggest we go without the fuel we need to get to work!!
Right... a member of my IP's team has just phoned. NR are prepared to drop the £50 to £41. This is where they are taking from
Social from £35.00 to £32.00 (not bothered by this)
childrens activities from £20 to £15 (hhhmmmmm)
contingency fund from £40 to £31 (what?????)
Telephone bill to be cut by £19
The best one is COUNCIL TAX to be cut by £6 (??????????)
A member of my IP's team has discussed this with the lady at NR and she will not budge. He questioned the all of the deductions but especially the council tax, but she just said that the cost of the 10 payments can be spread out across the year.
Any comments on this would be grateful to hear. Have got until tomorrow to get back to them.
I can't see that £9 is going to make a lot of difference Kazza - you will still be struggling and cutting such things as council tax is plain stupid! You know that it will go up again next year and you may find that you will really struggle.
Personally, I would consider BR. You won't have the stress of wondering if you can afford your payments, your debts will be written off straight away. You will discharged a year at the most, and if you do have an IPA, it will only last for three years.
Be a smack in the face for NR as well!
Please don't struggle Kazza, just think of what is best for you and your family.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I'm not sure of your employment situation but if you can expect payrises year on year (about they increased expenditure levels) then the payments will get easier year on year as you can keep 50% of any increase in DI.
The first year will be difficult but perhaps you have saved some contingency over the last month or so by not paying creditors that will see you through.
Its a tough decision and only you can make it. Some IPs may not want to hear this but there is nothing to stop you accepting the propsal now. This will get all the pressure of creditors off your back immediately. You can then take 1 week, a month or 6 months to properly consider your decision. If it is not working out, there is nothing to stop you going bankrupt.
Just don't want too long as all the money paid into the IVA will be lost.
Hi Kazza,, sorry to hear of your difficulties regarding NR insisting on an increase. Our Creditors meeting is Thursday & I have just been going through our I & E.Our sundries & emergencies is only £21 mth & we have nothing for social? We do have £21 for sports/Leisure/hobbies.
Infact looking at it our only OTT (over CCCS guidelines) expense is Telephone/mobile/internet at £65 but that is what it costs.
I really cant see anywhere where we could cut our costs to increase our payments unless,, either we eat less, dress in rags,stay cold in the winter. basically go without one thing or another. I think creditors need to wake up & smell the coffee, it is in no ones interest for an IVA to fail so why ask for more money than one can reasonably afford over a 60 month period,, it really beggers belief IMHO.
I wish you all the best Kazza in what ever you decide.
Personally, I would not accept and start struggling from day one. At the risk of upsetting any IP's, the only people who will benefit from this will be them as the first years payments usually fund their expenses.
If you cannot manage, then don't even enter into one. Utiliies are set to rise, Council Tax will rise, petrol will rise. I think it will be too stressful for you.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
