Hi currently having IVA proposal drawn up- apparently it is more complex than normal. This is in part due to having a salary decrease after reorganisation which is phased in gradually- so a year on decrease over 3 years- plus a pay freeze for 2 yrs being in public sector and job itself is not one in which overtime is possible ( time off in lieu).
Additionally over next 2-3 years my child maintenance will go down / then cease as will child benefit/ child tax credit. Allowing for all of this ( and offsetting this against decreasing allowances for children and taking these out completely) by year 3 I calculate that there will be no disposable income for an IVA ( ok in years 1 and 2).
I know a new I and E is done each year for everyone as costs of living, expenses do change. However my case contains known substantial decreases - combination of salary and factors above. The company in question is aware of this- as I sent all the relevant documenatation/ divorce and separation agreement.
Where does this leave me? obviously I don't want to set up something which could fail after 2 years. Thanks
There would be little point in starting an IVA which you know will only be manageable for 2 years. Talk to another company and see if they offer the same advice.
What is the firm you have chosen to make a proposal saying about what happens in year 3 if you have no spare income to make payments?? This is a sensible question for you to ask them and if you dont get a satisfactory answer then look to another solution.
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
I will ask them tomorrow- it's only this weekend I have had chance to look at the proposal ( not finished yet)but as the situation is quite complex and when I have done the maths I can see year 1 and year 2 are ok but after that it wouldn't be. Company is cleardebt
Absolutely no point in putting forward something which is going to fail - indeed your IP would be unable to sign off his report and comments as he has to state that he believes there is a real prospect of the IVA being implemented and completed - so that would be difficult if you are showing a zero disposable income by year 3.
You will be grateful that you are giving this matter some more thought now - as you have to be entirely confident that the arrangement has a good chance of running its course before signing on the dotted line.