My husband is and we are a bit confused as to how it is all going to work.
His salary is about half of what he earns. The other half is expences. For example he might earn approx 30K but the expences are 15K. Not this year though!
The thing is that the expences are not paid equally each month. So some months there will be a surplus and then the next month then the expences will use the surplus.
We asked the firm that we are dealing with can we keep the surplus in our account but they have said no as our creditors would be looking for the money.
So what do we do? Do we keep the money at home? This does not seem ideal, but we will if we have to.
IPs who act for self-employed clients must be satisfied at the outset that the trading projections to support the proposals are realistic and allow for periods of peaks and troughs in trading. All businesses experience this - including my own at times!
You have to be allowed a certain amount towards working capital, and it is unfair for the firm looking after you if they are stripping out all of the earned profits.
Which firm are you with - and did they hold detailed discussions with your husband at the time he entered into his IVA?
We are only setting up the IVA, they have not said that he cannot use the money, but they have said that we cannot have working capital if you know what i mean.
We will talk to them again. We just feel it would be safer to have the money in an account rather than sitting in the house.
I love the ideas of the jars but i work in insurance claims and know how often houses are burgled.
Thanks for answering Mel and any other advise would be most welcome.
I would pick an IP firm that are experienced in dealing with self-employed cases, and where staff are familiar with understanding trading accounts and cashflow forecasts.
Thanks Mel for the help. We are going through McCambridge Duffy and we will discuss it again with them tomorrow. I think it is because we are just about to put the papers in that we are a bit anxious about it all.
We know this is the right thing to do, it is just getting our heads around it.
This site has been a god send, I think i have read everything on it to try and give me a better idea of what we are doing.
Hi Newstart. We do not ask for bank statements from clients after approval unless something needs to be verified. If your husband is self employed and his earnings are erratic this is quite normal and any cashflow projections will show this.
Hopefully whoever you speak to will advise that you can keep the money in the bank and the original advice was wrong but if you have any doubts contact me directly and I will sort it out for you. My details are on the experts page.
You've picked an excellent firm New Start, they come highly recommeneded and Michael is usually around for any questions.
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
