iva modifications

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niceguy
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by niceguy » Thu Apr 05, 2018 12:59 pm
creditors meeting is scheduled on Monday, but called the IP any progress, one creditor so far wants one year extension plus wife needs to do job.
I think one year extension is fine and i can agree on that, but regarding my wife, she is house wife and all debts are on my name, no any join accounts. She looks after school children, pick and drop, full time childcare, as i work full time as a self employed. so dont know what should i do, I live in rented house, no property, just old car worth £1000. debts are over £ 50000. Any advice will be great help.
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Foggy
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by Foggy » Thu Apr 05, 2018 1:13 pm
If they word it that she "should seek work" it is a marginally reasonable condition. If they word it she "should get work", that is less reasonable. What they are after is that she should be able to bear a higher proportion of household expenses which would give you a little more to pay to the IVA.

You are entitled to your two-pennyworth ..... if it were me I would try to counter by getting the clause worded such that she "should only seek work which would result in a reasonable financial gain, after usual deductions, including full time childcare and school drop off / collection services".

If this creditor has over 25% (by debt value) of those that vote they can still make the rules ... but you are allowed to negotiate through your IP.
niceguy
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by niceguy » Thu Apr 05, 2018 1:36 pm
Thanks, creditor has over 25%. Dont know yet actual wordings from creditor, IP told he will forward soon. My wife has not got any degree, and if she gets any job, i guess, will be more financial problem, as might paying full time child care cost, school drop off and pickups, school meals, travelling expenses, and loosing benefits.
If that was the option doing job, then why we go for IVA. I want to pay what i can manage, but if they will ask more then one year extension then i will definitely will go the route of bankruptcy, and they will get nothing.




Foggy wrote:
If they word it that she "should seek work" it is a marginally reasonable condition. If they word it she "should get work", that is less reasonable. What they are after is that she should be able to bear a higher proportion of household expenses which would give you a little more to pay to the IVA.

You are entitled to your two-pennyworth ..... if it were me I would try to counter by getting the clause worded such that she "should only seek work which would result in a reasonable financial gain, after usual deductions, including full time childcare and school drop off / collection services".

If this creditor has over 25% (by debt value) of those that vote they can still make the rules ... but you are allowed to negotiate through your IP.
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kallis3
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by kallis3 » Thu Apr 05, 2018 1:45 pm
If they won't back down, have you thought bankruptcy if you have no assets?
niceguy
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by niceguy » Thu Apr 05, 2018 1:48 pm
kallis3 wrote:
If they won't back down, have you thought bankruptcy if you have no assets?

no assets, only car, value around £1000
niceguy
Posts: 13
by niceguy » Thu Apr 05, 2018 2:35 pm
what will happen if I accept modification like agreeing on one year extension, do i need to tell them before creditors meetings, or another proposal will be made after 2 weeks meeting again.
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Foggy
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by Foggy » Thu Apr 05, 2018 2:49 pm
The usual procedure is that, at the time of the meeting, the IP should inform you of any proposed changes by phone and, at that time, you either accept or decline. If you are with Creditfix, they appear to do things slightly differently and often will adjourn the meeting for two weeks while they argue the case or seek out votes from non-voters to counter the dissenting creditors if possible. However if the dissenting creditor owns more than 25% of the overall debt they cannot be outvoted, so it will fall to negotiation.
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Lisa Thomas
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by Lisa Thomas » Thu Apr 05, 2018 2:54 pm
Out of interest why did you choose an IVA over Bankruptcy? It seems BKY may have been a better option for you considering no assets and contributions for only 3 years...
niceguy
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by niceguy » Thu Apr 05, 2018 3:04 pm
Lisa Thomas wrote:
Out of interest why did you choose an IVA over Bankruptcy? It seems BKY may have been a better option for you considering no assets and contributions for only 3 years...


You are right, just want to pay what i can afford, even my budget is too tight and financial stress and i guess will not pay any penny in bankruptcy. I will discuss more soon, this forum is good for new people here.
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Foggy
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by Foggy » Thu Apr 05, 2018 3:07 pm
As self employed BR would be far simpler (if your income drops for any reason an IVA can fail, BR wouldn't!). You might need to make payments for 3 years, rather than 5 in an IVA.
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Lisa Thomas
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by Lisa Thomas » Fri Apr 06, 2018 8:27 am
BKY pros and cons here.

Think carefully and fast as you are about to enter an IVA if you do decide BKY is better option for you:

https://youtu.be/mAkQsVSCnqo
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kallis3
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by kallis3 » Fri Apr 06, 2018 8:49 am
You would be discharged from BR within 12 months usually, and make payments for 3 years if affordable.
niceguy
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by niceguy » Fri Apr 06, 2018 4:19 pm
Actual wordings from Creditor modification.
Duration:
The duration of the arrangement must be extended by 12 months, thereby increasing the overall payment term of arrangement to 72 months (a further 6 month period may be allowed for final adminstration.

Employement:
The Debtor's partner must obtain employment as soon as possible and full review of the debtor's income & expenditure must be undertaken by the supervisor. The contributions shall increase after taking into account any increased costs in respect of travel and childcare and should commence in the month following the review.

I think Duration one is straight forward modification and i can agree, but please someone can explain about Employment modifications, so please help me out to decide, is that common request of employement wording, or it will be difficult for me to deal in coming days.
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Foggy
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by Foggy » Fri Apr 06, 2018 5:00 pm
niceguy wrote:
Actual wordings from Creditor modification.
Duration:
The duration of the arrangement must be extended by 12 months, thereby increasing the overall payment term of arrangement to 72 months (a further 6 month period may be allowed for final adminstration.

Employement:
The Debtor's partner must obtain employment as soon as possible and full review of the debtor's income & expenditure must be undertaken by the supervisor. The contributions shall increase after taking into account any increased costs in respect of travel and childcare and should commence in the month following the review.

I think Duration one is straight forward modification and i can agree, but please someone can explain about Employment modifications, so please help me out to decide, is that common request of employement wording, or it will be difficult for me to deal in coming days.


Basically they are saying your wife must find work and, after the expenses are accounted for her wages will be used to pay towards the IVA. Personally I feel this is unreasonable and why should your partner pay your debts and why should she basically work for nothing ?? I know Payplan work that way (at least they used to) -- it seems some creditors are cottoning on to this too !

If BR holds no fears for you I would seriously be looking at it as an option ... but do some quick research first.
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kallis3
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by kallis3 » Fri Apr 06, 2018 5:37 pm
I agree you should give BR some serious thought. Your wife would not be required to find work, particularly as she has family to look after and creditors should realise this.
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