Hi I have recently went ahead with an iva and the proposal is happening in 2 weeks with my creditors. My debt is around 19,900 with monthly payments of £190. I came across the guidelines for expenditure and now I’m worried my iva is going to be rejected because a couple of my expenditures are above the guidelines. My Clothing & footwear is £80
Meals at work £80
Sports + hobbies + entertainment £60
I would usually spend this a month and this was an honest assessment but now I’m just worried my iva will be rejected and has sent me into panic mode when I came across these guidelines today.
Unless there is good reason for these amounts to be well over guidelines, which the creditors accept, there is a chance that they will reduce them at the creditors meeting. I, for instance, put in an expense of £56 for bus fares and, on the day the creditors reduced this to £28, so increasing my monthly payment slightly.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
[quote="Foggy"]Unless there is good reason for these amounts to be well over guidelines, which the creditors accept, there is a chance that they will reduce them at the creditors meeting. I, for instance, put in an expense of £56 for bus fares and, on the day the creditors reduced this to £28, so increasing my monthly payment slightly.[/quote
Ok I see Clothing & footwear guideline says £34 and mine is £80, sports and hobbies guideline maximum is £20 and mine is £60 and meals at work is £36 maximum and mine is sitting at £80 on my form. Just looking some reassurance etc on this as when you read things like this I'm worried it will be rejected. Or I will have to pay an extra like £150 a month because it these 3 expenditures are like £40/£50 over. Nervous times as I’m not really sure how it all works will they maybe just decrease it slightly like yours and ask for a small additional payment of like £20?
Did your IP ask why these amounts were over guideline ? They usually suss this out first so that they can argue the point if and when the creditors ask --- if you are lucky the creditors won't notice !
Why are they so high, if I might ask ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Foggy wrote:Did your IP ask why these amounts were over guideline ? They usually suss this out first so that they can argue the point if and when the creditors ask --- if you are lucky the creditors won't notice !
Why are they so high, if I might ask ?
I don’t see why my IP would have went ahead with the meeting if these were so high and gonna increase the chances of rejection which kind of gives me some reassurance but it’s just so worrying when I came across the guidelines today and 3 of mine are over by a fair amount. I’m with CF and they have been very helpful. They didn’t ask why they were over the guidelines they just asked for each one of my outgoings and I told them and they didn’t say anything was over or high. I didn’t even find out about guidelines until I came across reading across ivas today. and I am quite athletic as it helps me battle mental health with the debt I’m in. I play football and go to the gym so have to pay towards it including clothing. My meals at work I would usually buy dinner in work so that at averages at £5 a day 5 days a week.
Ah! CF can sometimes be "creative" with allowances (see help-with-credditfix-confusion-t86856 ) it seems. But, anyway, expenses are not usually the reason, by themselves, for a rejection. As I say they are more likely to come back to you with reduced figures.
I have to say that gym membership is a rare allowance these days, and the meals at work allowance usually just covers a sandwich or Tesco "meal deal". Sacrifices may need to be looked at.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Foggy wrote:Ah! CF can sometimes be "creative" with allowances (see help-with-credditfix-confusion-t86856 ) it seems. But, anyway, expenses are not usually the reason, by themselves, for a rejection. As I say they are more likely to come back to you with reduced figures.
I have to say that gym membership is a rare allowance these days, and the meals at work allowance usually just covers a sandwich or Tesco "meal deal". Sacrifices may need to be looked at.
Just hope it doesn’t get rejected. £175 4 weekly over 59 payments then a further 6 payments of £175 for £19900 debt seems reasonable doesn’t it? If they come back with reduced number which means I have to pay like £30-£40 more that would be ok but just worries they would want to up my payment to like £300 a month. Scary thought. Just want to get it over with and into my iva and start to see a light at the end of the tunnel. Debts are owed 5 days before the meeting. If they ask for a higher monthly payment which I accepted on the day of the meeting will this delay the decision even longer?
Foggy wrote:Ah! CF can sometimes be "creative" with allowances (see help-with-credditfix-confusion-t86856 ) it seems. But, anyway, expenses are not usually the reason, by themselves, for a rejection. As I say they are more likely to come back to you with reduced figures.
I have to say that gym membership is a rare allowance these days, and the meals at work allowance usually just covers a sandwich or Tesco "meal deal". Sacrifices may need to be looked at.
Just hope it doesn’t get rejected. £175 4 weekly over 59 payments then a further 6 payments of £175 for £19900 debt seems reasonable doesn’t it? If they come back with reduced number which means I have to pay like £30-£40 more that would be ok but just worries they would want to up my payment to like £300 a month. Scary thought. Just want to get it over with and into my iva and start to see a light at the end of the tunnel. Debts are owed 5 days before the meeting. If they ask for a higher monthly payment which I accepted on the day of the meeting will this delay the decision even longer?
If they counter offer on the day and you accept on the day it will be actioned that day .... be prepared though, CF do have a track record of needing adjournments, although mention of these on the forum has tailed off in recent weeks.
Why are you paying 59 then 6 extra payments ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Foggy wrote:Ah! CF can sometimes be "creative" with allowances (see help-with-credditfix-confusion-t86856 ) it seems. But, anyway, expenses are not usually the reason, by themselves, for a rejection. As I say they are more likely to come back to you with reduced figures.
I have to say that gym membership is a rare allowance these days, and the meals at work allowance usually just covers a sandwich or Tesco "meal deal". Sacrifices may need to be looked at.
Just hope it doesn’t get rejected. £175 4 weekly over 59 payments then a further 6 payments of £175 for £19900 debt seems reasonable doesn’t it? If they come back with reduced number which means I have to pay like £30-£40 more that would be ok but just worries they would want to up my payment to like £300 a month. Scary thought. Just want to get it over with and into my iva and start to see a light at the end of the tunnel. Debts are owed 5 days before the meeting. If they ask for a higher monthly payment which I accepted on the day of the meeting will this delay the decision even longer?
If they counter offer on the day and you accept on the day it will be actioned that day .... be prepared though, CF do have a track record of needing adjournments, although mention of these on the forum has tailed off in recent weeks.
Why are you paying 59 then 6 extra payments ?
It says on my agreement ‘’The payment period under the arrangement will be 59 months. After this period, the arrangement will remain in force for a maximum of 6 months to allow my Supervisor to make the final distribution and complete their administration.
7.2 The expected realisations under this proposal comprise the following contributions from my surplus income. Details of my current income and expenditure as verified by my Nominee are in the attached income and expenditure account. I propose to pay 65 four-weekly payments of £175.38, giving a total of £11,399.70. A monthly payment shall henceforth be known as a ‘contribution’ for the purposes of these proposals.’’
I think you will find the 6 months on the end is for your IP to complete closure action rather than you continuing to pay, but I maybe wrong in my understanding.
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