Applying for an IVA preemptively

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meg499

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Post by meg499 » Wed Nov 11, 2020 4:47 pm
Hello, I am looking to apply for an IVA preemptively - from next month my expenses are going to skyrocket including my fuel and car costs which will be around £495. This will leave me unable to pay mine and my partners debts of over £60,000 with just about £275 left every month after predicted expenses.
So Q1) Will I be able to submit an expense for the car at this amount (reason is for work, I will be needing to travel 100+ miles a day)
Q2) Am I able to apply for an IVA like this? Based on further expense with no current statement/receipt.

Thanks in advance :)

meg499

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Post by meg499 » Wed Nov 11, 2020 4:50 pm
Oh I should also clarify that it’s not just me paying for both of our debts, we’d be looking to apply for a joint/linked IVA or whatever that’s called :)
Also *future not further

Foggy

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Post by Foggy » Wed Nov 11, 2020 5:14 pm
Hi. 'Joint' IVAs are two individual arrangements made to be 'interlocking' ... so, to all intentsd and purposes, treated as one.

You will need to provide evidence of the expenses for creditors to agree to them --- if they are above guideline figures you will need to convince creditors of the wisdom of allowing them. Why are they skyrocketing next month ?

You can start laying the groundwork now, but will need to get evidence of the expenses etc. before they will agree to the figures. It would be a good idea to have a chat with a couple of providers so you know the 'ins and outs' and can hit the ground running when the time comes. You can also do a bit more research than most in your choice of provider.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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size5

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Post by size5 » Wed Nov 11, 2020 8:07 pm
Hi,

I cannot immediately see any reason why an IVA would not work. If the expenses are reasonable and can be documented, as previously stated, then creditors should accept them.

Regards.
Cert DR
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meg499

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Post by meg499 » Sun Nov 15, 2020 5:11 pm
Hi Foggy & Size5!

Thanks both for your replies. I will start saving receipts of fuel expenses in preparation - we're planning to speak to McD and PayPlan next week to talk through the options.

Is there a typical accepted rate of pence to pound? Would £25p/£ be deemed okay in most aspects?

We're slightly worried about creditors saying no, Sainsburys bank hold 17% as to Oplo, closely followed by Zopa at 12%. Is there a historical pattern of these creditors accepting/declining the offer or is it pretty much down to each IVA as an individual case?

Finally, we recently took out a loan (as recent as within the past 3-4 weeks), is this going to cause an issue with the IVA application do you know?

meg499

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Post by meg499 » Tue Nov 17, 2020 11:41 am
Hi both, sorry to jump back before you've had the chance to reply. But out of curiosity - we had a big holiday booked and paid for and were due to go away Aug 2020. Because of corona, we've re-booked for April 2021. Would we be expected to cancel this holiday if entering into an IVA? Not sure if that's a silly question, but I just wonder if the lenders can ask us to cancel and apply for a refund. It was out honeymoon, so about £3,500 - doubt we'd be successful in receiving a refund as it'd be us cancelling.
But yeah, just curious :)

Foggy

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Post by Foggy » Tue Nov 17, 2020 12:02 pm
On the dividend front, 25% is a good figure, so should be considered seriously. Some creditors have a policy of voting no, but most see the wisdom of getting what they can, rather than nothing at all. Every case, though, is judged on individual merits (and, I am sure, the weather and what they had for breakfast that morning !! ). That new loan might ruffle a few feathers, but you can only try and see. If the IVA is rejected for that reason you could try a DMP for a while and have another stab later on.

The holiday ? Difficult to say, really, as it is a strange situation with everything going on. I doubt, however, that they would even know. Hopefully it is all inclusive as spending money will be tight !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

size5

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Post by size5 » Wed Nov 18, 2020 1:55 pm
Hi,

Sorry for the delay, I don't look in as often as I used to and I am a bit of a technophobe so haven't worked out how to turn on notifications for replies!!

Anyway, good and bad news. In my opinion, the holiday should be fine, it was booked and paid for before the IVA was mooted, and it would be a hard hearted creditor that would kick up a stink. The I.P. will have to explain the circumstances, but I feel you should be o.k.

The slight fly in the ointment is Zopa. They are notoriously anti IVA and you should expect a no from them, regardless of the situation. They do, sometimes, fail to get a vote in on time, but best not to rely on that. As they have 12% of the debt (and I would always add a bit onto that as a debt balance can increase at the time of creditors meeting to cover ALL interest outstanding) then you need minimum of 48% of accepting creditors.

Can you let us know what the total debt is, and maybe some other creditors on your list, and I may be able to give you a better idea?

Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself

Follow my tweets at http://twitter.com/debtmastersize5

MrMole

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Post by MrMole » Wed Nov 18, 2020 6:47 pm
Fyi size 5, Zopa vote through WPM now.
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