queries re IVA

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jd230

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Post by jd230 » Sun Jul 25, 2010 10:25 pm
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
 
 

plasticdaft

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Post by plasticdaft » Sun Jul 25, 2010 10:30 pm
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.

Paul
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Continuing to rebuild our credit worthiness.
 
 

jd230

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Post by jd230 » Sun Jul 25, 2010 10:38 pm
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
 
 

MelanieGiles

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Post by MelanieGiles » Sun Jul 25, 2010 10:54 pm
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.
Regards, Melanie Giles, Insolvency Practitioner
 
 

size5

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Post by size5 » Mon Jul 26, 2010 12:15 pm
I cannot identify you by your forum name, so if you would like to contact me directly, my details are in the experts section on the left, then I will happily have a look at things for you.

Regards.
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Tina Shortland

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Post by Tina Shortland » Mon Jul 26, 2010 1:31 pm
Hi jd230, it is far better to stop and have a rethink now than to sign up to something that may be a bad idea. I'm sure size5 will go over things with you and help you make the right choice.

Let us know how you get on.

Regards,
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.

If you’re looking for effective debt related information, articles and news, then go now to our on-line advice service at www.debtadvicetv.com

If you’re ready to ask us for specific advice or help, then get in touch at www.call-me.debtadvicetv.com so you can start to free yourself from the stress and anxiety of overwhelming debt.
 
 

tobeornot

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Post by tobeornot » Mon Jul 26, 2010 2:06 pm
yah
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