My proposal is due a couple of amendments then ready to sign and await Creditors meeting date!
However can anyone advise what happens to the surplus in months 11 and 12 of a 10 month direct debit Council tax arrangement in an IVA?
I did ask CCCSVA nearer the beginning of the process about this, they told me using the 10 monthly figure is fine but were a bit ambigous about the months 11 and 12 surplus, indicating I should be able to keep this as part of a contingency fund? Surely the creditors are going to want a part of this at least?
Certainly my proposal includes the monthly figure based on 10 Monthly payments, and CCCSVA have had the bill confirming the number of payments in the calender year.
on my I&E form i deduct it over 12 payments so i give an accurate breakdown, i do this for many things, such as my car tax (ie £10 per month) or the money i have to pay yearly to be a registered nurse etc
hope this helps
Drew
IVA completion and certificate received 08/10/2012!!!
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
Exactly - I love the two free months from that and also the break from the water rates.
Ideal to use for contingency, or even a little treat or two.
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
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
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
When my proposal was worked out the yearly figure was divided by 12 so the fact that's got to be paid in 10 months means we'll be paying each month a little more than the figure quoted but does mean that we'll in effect 'save' for the 2 free months by paying that little extra.
I guess on that basis I should tell my proposer that my monthly car insurance payments are £22 per month (again over 10 months although I paid £19 initial deposit) rather than the £20 I had advised, after I had added the initial deposit and divided by 12? Is this worthwhile?
in my opinion you should only quote your premium total divided by 12 months to give a realistic monthly figure, you should have a contingency built into you budget to allow for any extra it might be if paying over 10 months. So say your premium is £240 then quote £20 even though over a 10 month period the actual figure each month is £24 the extra £4 could be taken from your contingency that way at the end of 10 months you then have 2 months where you have £24 each month that your used to paying for whatever you like.
I can't see your IP accepting a payment quote which taken over 12 months is actually more than your premium.
As I said this is only my opinion and my understanding of the way it works but someone with more experience may come along shortly and say I'm talking rubbish!
Thanks, I actually meant that would it be worthwhile declaring the monthly payment as a ten payment agreement at £22 per month? Then again, when bearing in mind the initial deposit paid, this is maybe just a little too fiddly and I am thinking maybe best to simply leave at £20 per month as this rounded up does equate to the overall premium over 12 months?
justsurviving wrote:
When my proposal was worked out the yearly figure was divided by 12 so the fact that's got to be paid in 10 months means we'll be paying each month a little more than the figure quoted but does mean that we'll in effect 'save' for the 2 free months by paying that little extra.
Can I also ask then on this basis, the division of the yearly figure by 12 instead of the true figure of 10 surely gives a lower monthly expenditure outlay, therefore more surplus to the creditors monthly - and this includes months 11 and 12 -although you are actually saving the monthly payment in these months, surely you are worse off overall than simply declaring the 10 equal monthly payments?
