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IVA Confusion

I am totally new to this website, but am hoping that someone out there can shed some light on my problem! Have had a glance through the other threads but cant find anything similar to my problem. Here goes....I entered into an IVA with Wilson Phillips in April 2007, I owed 60,227, and with my then salary and outgoings they set the payments at £594 per month, with the clause that I have to pay 50% of any overtime I do. However, during the year, I had to pay my parents money that I owed them, so I didnt put aside any money for the 50% overtime thing. So at my review in April this year, the company then decided I owe them £3434.91 due to the overtime I had done. I couldnt afford to pay them, so they said that they could put my monthly payments up to cover the costs. Of course, now the cost of living has increased, I am now renting a house with my partner, and am paying out considerably more than I was on bills etc. I explained this to Wilson Phillips who said that my partner should be contributing 50% to all costs. (She earns around £700 a month full time so how could she?) I sent a new expenditure sheet to Wilson Phillips but so far its been four weeks and they havent given me a decision (they have said they are too busy!). My partner and I are in dire straits, and are getting more and more into debt.
So, I considered BR as a way out, I rang CCCS, National Debtline and Insolvency helpline and they all said that I should speak to Wilson Phillips first!!! (AAHH-theyre too busy though!) .I read through the contract I have with Wilson Phillips, and I noticed these paragraphs:
If I am declared bankrupt, i will be obliged to pay a percentage of my surplus income into the bankruptcy estate for a maximum of 3 years as follows:
£0-£99 0% £100-£249 50% £250-£349 60% £350-£499 66% £500+ 70%

If I am declared bankrupt the Official Receiver immediately becomes entitled to an admin fee of £1625

If I am declared bankrupt, all money received by the OR would have to be deposited in the Insolvency Services Account at the Bank of England.

So, my questions are these:
1.In the first paragraph, is this whats called an IPO? Or, could an IPO be slapped on top of this? Arent IPO payments set at a certain amount every month?
2.What if theres no surplus income? Who sets what an allowable amount of living expenses are, and would my partners salary be taken into account as well?
3.Where does this admin fee come from? How does this get paid when I dont have any money?
4.What does the last paragraph mean?
5.Isnt an IVA separate from a bankruptcy? How can Wilson Phillips set terms and conditions, isnt this the job of the OR?

I suppose Im just hoping someone else has been in this situation and can shed some light on it all (seeing as my IVA company cant), it just seems really confusing, but I just dont know what to do. I have put a copy of the expenditure sheet on here.

Rent £600
Council Tax £227- yes this is correct!
Contents ins. £17.97
Telephone £ 30- this is home, not mobile
Gas and Electric £50
Sky £19
Water £27.80
Petrol £340 -I have a 120mile round trip every day
car ins/tax/etc. £107.50
food/pet food/living £250
parents loan £100
Wilson Phillips IVA £594

Total £2363.27

my salary £1450
my partners salary £740

Total £2190

Comments

  • fermi
    fermi Posts: 40,546
    First Anniversary Combo Breaker First Post Intrepid Forum Explorer
    Forumite
    rooney9887 wrote: »
    I read through the contract I have with Wilson Phillips, and I noticed these paragraphs:
    If I am declared bankrupt, i will be obliged to pay a percentage of my surplus income into the bankruptcy estate for a maximum of 3 years as follows:
    £0-£99 0% £100-£249 50% £250-£349 60% £350-£499 66% £500+ 70%

    If I am declared bankrupt the Official Receiver immediately becomes entitled to an admin fee of £1625

    If I am declared bankrupt, all money received by the OR would have to be deposited in the Insolvency Services Account at the Bank of England.

    So, my questions are these:
    1.In the first paragraph, is this whats called an IPO? Or, could an IPO be slapped on top of this? Arent IPO payments set at a certain amount every month?

    Yep. That would be the IPA/O.

    It is based upon a % (sliding scale) of genuine surplus income as stated above.


    2.What if theres no surplus income?

    You don't pay an IPA/O. :)

    Who sets what an allowable amount of living expenses are, and would my partners salary be taken into account as well?

    The OR/trustee would assess your income/expenses. Based in a loose way on National averages for spending, but taking into account your individual circumstances as well.

    The OR is often not as tight with your I&E compared to that common in an IVA.


    3.Where does this admin fee come from?

    OR's basic administration costs.

    How does this get paid when I dont have any money?

    It doesn't. It is adsorbed into the cost of the bankruptcy.

    But if your bankruptcy estate should realise any funds, the OR/trustee is paid their fees first.

    4.What does the last paragraph mean?

    Any funds are held by the civil service. The OR/IS is part of that.

    5.Isnt an IVA separate from a bankruptcy?

    Yep.

    How can Wilson Phillips set terms and conditions, isnt this the job of the OR?

    They can't set binding terms. I expect they just have them in there so that it can be shown that you have been told what to expect if they have to petition for your bankruptcy.

    Hope that helps. :)
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
  • Thank you so much for your reply, this has helped me a lot.
This discussion has been closed.
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