Why cant I make the voluntary contributions more ?

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kelly.rn

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Post by kelly.rn » Wed Sep 08, 2010 7:59 am
My IP has just prepared my estimated outcome statement. My total liabilities are £39,000. I have equity of £34,000, but no way of realising this at present. The IP has put my voluntary contributions at £6000 because I am self employed and that is from my personal drawings. The IP has told me that she does not think the creditors will allow this because I have to much equity and she thinks they would make me sell the property which I really do not want to do. The question is I don't understand why I can't make the voluntary contributions more by adding some more money a month from my business takings as most of the debts are business related ?
 
 

kallis3

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Post by kallis3 » Wed Sep 08, 2010 8:42 am
Hi Kelly and welcome to the forum.

Have you had your house valued recently? You might find that it isn't worth as much as you thought.

You could perhaps think about doing a debt management plan instead, that way your house would be safe.

Which company are you using?
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
 
 

Adam Davies

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Post by Adam Davies » Wed Sep 08, 2010 8:44 am
Hi
How much is your IP proposing that you pay each month ?
Regards
Andam Davies
 
 

DonnaM

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Post by DonnaM » Wed Sep 08, 2010 8:55 am
The IP is proposing I pay only £100 per month. The house has only just been valued. I am using a company called Kirk Hills.
 
 

DonnaM

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Post by DonnaM » Wed Sep 08, 2010 8:57 am
Sorry don't think I was logged on when I asked the question !
 
 

kallis3

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Post by kallis3 » Wed Sep 08, 2010 8:58 am
I've not heard of those and £100 a month is very low for an IVA.

Why don't you give one or two other companies a ring? The companies on www.iva.com come highly recommended and the advice is free and impartial.
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
 
 

DonnaM

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Post by DonnaM » Wed Sep 08, 2010 8:59 am
Time is not on my side as they are preparing a interim order today to stop my electricity being cut off.
 
 

kallis3

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Post by kallis3 » Wed Sep 08, 2010 9:44 am
Have you spokeo them about upping the contributions?

When is the interim order due to go to court? There may still be time to change.
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
 
 

MelanieGiles

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Post by MelanieGiles » Thu Sep 09, 2010 1:06 am
It is ridiculous to present an IVA with payments of £100 per month when you have such high equity in your property. How does your IP intend the equity to be dealt with at the end of the IVA?

If you are going to put that sort of offer forward, with the expectation of a high equity release at the end, I feel a DMP would be a better route as at least you might try to preserve your credit rating in preparation for this.

Why not consider selling the property and making an offer of settlement out of the sale proceeds - having allowed to keep some money to pay for relocation costs?
Regards, Melanie Giles, Insolvency Practitioner
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