Hi all, back again to ask a question, although i still pop in every now and again! here goes, My OH is considering an iva, At present she's in a debt management, she currently pays £25.00 per month into an insurance policy for our youngest, he will recieve this on his 18th birthday, hopefully to help with his university.also my wife is paying into a sharesave scheme with her work currently £20 per month,would she have to stop these schemes if she was to go into an iva? any advice, as always, would be appreciated. thanks
You can lead a horse to water, But a pencil must be led!
Probably - as savings which creditors will deem to be at their expense, will generally be modified out even if your IP puts them forward in the first place.
The advantage of an IVA however, must be to clear your debts in a realistic timescale and, once you have the discipline of not spending money on unecessary items, she could then save all of her disposable income to help your son through university.
Definately worth balancing the pros ad cons - and she can also save her share of any uplift payments during the IVA as well.
If you didnt have your debts I am sure you could probably put away more than £45 a month. Look at the long term future without your debts and decide whats best.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
They asked me to stop contributing payments to fairshare credit union. It looked dodgy to them as it come straight out of my wages. I still contribute (only £5 a month which is the minimum to keep the account open). It's just part of my allowence I don't use every month!
If Football was meant to have been played in the air then God would have put Grass in the Sky
The sharesave scheme would almost certainly produce more for creditors if it ran its course rather than them only getting the net increase in salary from £20. I would be inclined to look at the scheme and weigh up the benefits. I have had clients who pay into SAYE schemes and any shares that mature during the IVA got to creditors but the clients get anything that matures afterwards. This can benefit all concerned.
The £25 per month for the university plan could also continue provided it was not to the detriment of creditors. Your wife could agree to bring in £1500 from her share of bonuses or overtime throughout the IVA and if this was not achieved the IVA could be extended to address the balance.
Ultimately it is creditors who will have the decision but I see no reason why she could not keep both schemes.
Always worth a try Melanie particularly with SAYE schemes. Many workers have SAYE schemes and the price they will pay for the shares is much less than the current value. If the schemes run their course there would be a much better return to creditors than just cancelling and have £20 net of tax paid monthly into the IVA.
I would certainly look at the price the options were granted at and the current market value. Letting the schemes run would benefit all concerned and while I agree some creditors may raise an eyebrow, if it can be explained I see no reason why post IVA maturities cannot go to the debtor and anything that matures during the IVA goes to creditors.
