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Everest
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by Everest » Wed Nov 07, 2018 10:58 am
I have read pages and pages of threads on here and it’s been incredibly helpful so far. I am in the process of applying for an IVA and have spoken to a couple of firms. I have a couple of questions, but first I’ll explain my situation…

I have taken loans out that total 35K as a result of my gambling addiction. I’ve had to come clean to my Family and Girlfriend and I’m fully committed to recovery and becoming a much better person. However, the debt I have run up is daunting to say the least, hence why I’m looking to go down the IVA route.

I live with my parents and no longer have my property having sold it earlier this year (the money I made from that has also been gambled away). The IP I recently spoke with advised that he would call me in the next few weeks as before speaking to my creditors he will need to prove I am no longer gambling.

I assume that when I have my chat/ sit down with an IP to discuss my finances they will also want to know what my current monthly budget looks like to determine how much I can contribute towards my debt. From the experience of others on here, what would be deemed as unnecessary expenditure?

Would I be able to say I want to put £150pm away to save for holidays for example?
Is ‘saving’ seen as a no-no and any left over money should go towards your IVA?
How much are you allowed to ‘live’ during your IVA and do you have to prove/ show evidence of every last cent on your first meeting and annual reviews?

I apologise if these seem like silly questions, but I didn’t really know what an IVA was until 3 days ago and just want to be prepared for what I get asked and what might be scrutinized when I have my meeting.

Thank you in advance and if you want to ask any questions, then you are more than welcome.
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Foggy
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by Foggy » Wed Nov 07, 2018 11:06 am
Hi. Welcome and well done for facing up to the problem.

Basically you are allowed certain, agreed, expenses, within set guidelines ... everything else left is the disposable income -- the IVA payment. You will have to evidence some expenses. You will not be allowed an amount to "save" or anything towards holiday, Christmas, Birthdays etc.

You will be allowed an amount towards rent at your parents and food / share of utilities etc ... but you will have to show that you are actually paying this to your parents. Typically a single person is allowed around £170 for food per month (guidelines are between £100 - £220).
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kallis3
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by kallis3 » Wed Nov 07, 2018 11:11 am
You will have to prove you have sorted your addiction - have you cancelled any online gambling? You need to do that.
Everest
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by Everest » Wed Nov 07, 2018 11:18 am
Thank you Foggy, I appreciate the quick response.

Are you really saying you cannot put money aside for Birthdays/ Christmas/ Holidays? Was kinda hoping the ‘not’ was a typo!
Everest
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by Everest » Wed Nov 07, 2018 11:20 am
Hi Kallis.

Yes, I’m getting treatment and have self excluded with every Online site through GamStop.

I’m happy to keep all that in the past now
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Foggy
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by Foggy » Wed Nov 07, 2018 11:43 am
Everest wrote:
Thank you Foggy, I appreciate the quick response.

Are you really saying you cannot put money aside for Birthdays/ Christmas/ Holidays? Was kinda hoping the ‘not’ was a typo!


Sorry --- NOT a typo -- you cannot put money aside for these occasions, apart from anything you might save from shopping ( a tenner here and there) or your share of overtime. I used to fund mine from shopping surveys !
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Lisa Thomas
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by Lisa Thomas » Wed Nov 07, 2018 11:45 am
Everest wrote:

Would I be able to say I want to put £150pm away to save for holidays for example?

No - you have to pay back what you can afford of your debt, creditors are not going to allow you to retain £1,800 a year, in particular to go on holiday whilst they write their debt off.

Is ‘saving’ seen as a no-no and any left over money should go towards your IVA?

It depends where the savings come from - often a standard 10/50/50 split can be retained from overtime and bonuses over and above your normal wage.

How much are you allowed to ‘live’ during your IVA and do you have to prove/ show evidence of every last cent on your first meeting and annual reviews?

Every IVA is individual so will depend on what is reasonable in your circumstances.

If you have sold your property and have no assets left of value then Bankruptcy may be a better solution for you. I trust you have already explored this option and discounted it?


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kallis3
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by kallis3 » Wed Nov 07, 2018 12:05 pm
You can always do what I did and sign up to online surveys and gain vouchers to give as gifts. I still do.
Everest
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by Everest » Wed Nov 07, 2018 12:09 pm
Thank you again for your responses

Bankruptcy isn’t really an option as I still want a mortgage when all this is behind me and I believe that will be harder.

I appreciate every IVA is different, but what areas of expenditure are seen as a necessity and non-negotiable?

I assume the following would fall within this area:

Rent/ Board
Food
Car running costs
Phone contract
Pet payments

Would these count?

Clothes
Social money

Sorry for all the questions. I just want to know I’m pursuing the right option for me.

Thanks again
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kallis3
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by kallis3 » Wed Nov 07, 2018 12:19 pm
What are your pet costs for?

You are allowed a certain amount of money for social purposes and also clothing but you need to sort this out with an IP.
Everest
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by Everest » Wed Nov 07, 2018 12:26 pm
Pet costs would be insurance, jabs etc as well as food. Surprising what it amounts to!
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Lisa Thomas
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by Lisa Thomas » Wed Nov 07, 2018 12:38 pm
Everest wrote:
Thank you again for your responses

Bankruptcy isn’t really an option as I still want a mortgage when all this is behind me and I believe that will be harder.

You will probably have the same issues regardless as Bankruptcy and IVAs will both damage your credit rating for 6 years.

I appreciate every IVA is different, but what areas of expenditure are seen as a necessity and non-negotiable?

I assume the following would fall within this area:

Rent/ Board
Food
Car running costs
Phone contract
Pet payments

Would these count?

Clothes
Social money

Sorry for all the questions. I just want to know I’m pursuing the right option for me.

You disclose your actual expenditure - creditors decide whether your expenditure is reasonable. 'Social Money' is probably questionable.

Bear in mind with BKY you will only pay an IPA for 3 years (if affordable) whereas some standard IVAs will be for 5 years.

Thanks again
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Foggy
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by Foggy » Wed Nov 07, 2018 12:39 pm
I assume the following would fall within this area:

Rent/ Board -- whatever you are paying if considered reasonable
Food -- Single person £100 - £220 (guide £170)
Car running costs -- insurance & tax at cost, fuel £0 - 200 (guide 125) Pares & Servicing (£10 - £30 (guide £15) -- assuming modest vehicle
Phone contract -- £0 - £60 (guide £50)
Pet payments --- Food & Insurance £0 - £35 (guide £25)

Would these count?

Clothes -- £0 - £35 (guide £25)
Social money -- £0 - £20 (guide £10)

These are monthly figures for a single person --- if, for instance, you travel for work and can justify higher fuel costs you might be allowed more. You can also claim for Emergency fund (up to £15), Hairdressing (£12). Dentist (£12), meds (£12),
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kallis3
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by kallis3 » Wed Nov 07, 2018 4:07 pm
I was able to claim for pet insurance but, obviously jabs would be extra and don't forge excess on insurance would be extra.
Everest
Posts: 6
by Everest » Wed Nov 07, 2018 8:41 pm
Thanks so much everyone. You’re all so helpful on here!

In relation to opting for bankruptcy...I’m not sure about this as I’ve always assumed it’s a last resort. I have looked into it a bit more this afternoon and it seems it’s not as devastating or life changing as it once was. And there’s not so much of a stigma attached to it.

In order to be eligible for bankruptcy, do you need to be under a certain salary threshold?

And finally, moving back on to the IVA; can this be done by yourself or will you always need an IP who’s the go between? Someone mentioned to me today that fees/ interest etc can be quite high and that’s obviously something I’m trying to get away from.
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