IVA Disaster or Saviour any experiences

donnalove

you say you would be homeless if you went for bankrupcty, have you taken advice on this as if there is not a lot of equity you could come to some arrangement with the or to buy out the benificial interest.
we completed or iva had completeion certificate 3 weeks ago, it was ok you have to stick to arrangement though, or they can make you bankrupt.
the first year was the hardest seemed to get easier after that.

missymugwump

my husband is my busines partner and all our debts are joint due to the partnership.
So neither of us is in a position to buy out the others interest and as it is both of us who would be bancrupt we wouls loose it all.
Did you find your initial budget worked for you,or did you need to change it.I'm worried we may end up under budgeting and living on cornflakes for 5 years

donnalove

our budget was quiet generous we even argued the point of sky and this was in there to.There is 5 of us and we were given £500 for food and household.We did have a bit of trouble in 2004 when eldest went to high school, as she was coming home dinners till then, but this added extra £10 a week as she was having £2.00 a day for dinner money, we had to prove she was having school dinners and the cost.you can tweek your budget to suit your needs not theirs as long as you don't go outside the guidelines.

missymugwump

This is our biggest worry for this to work we have to have a realistic (where possible) all eventuality budget.
If we are to stick to this for 5 years we have to be careful.
We are prepared to cut back and knuckle down but can you put things like
Dry cleaning my husbands work suits
Childrens birthdays
Xmas
Anniversarys & birthdays for relatives
Are they any catergories other than the obvious utilities we should consider putting in the budget to make it workable.

sparkle84

Has your IP not gone through any figures with you yet, at 770 per month you are only going to be offering you creditors 25p in the £1 (approx) will this be accepted by them do you think?? I am sure there are some ways of tweaking the figures but most people don't opt for IVAs because they are hard to keep to and you are make bankrupt if they fail. Is an IVA you only option?

missymugwump

It would appear so there are no more options for us,the 770 is not set in stone we meet her tomorrow with our final figures she is looking for 30p in the pound?

missymugwump

Why do you say they are hard to keep?
Purely because peoples financial circumstances change?
Or are there other reasons?
We have been led to believe that when our IVA is reviewed 6 monthly mini,12 monthly full review we can make changes to the plan?

sparkle84

missymugwump wrote:

Why do you say they are hard to keep?
Purely because peoples financial circumstances change?
Or are there other reasons?
We have been led to believe that when our IVA is reviewed 6 monthly mini,12 monthly full review we can make changes to the plan?

No you can't make changes to an IVA it is agreed and voted on at a certain repayment and that won't be changed, the only reason an IVA is reviewed yearly is they will ask for P60 so that can check you have not had pay rises or bonus' as they will want them as well. Have you been told you will have to remortgage your house in year 4 to release equity and if you don't want to do this you have to extend the IVA by 12 months making it six years long, could I ask who you are doing an IVA with??

To answer you question IVA are difficult because they will take all your surplus income and you will be left with a fairly basic budget to live on

missymugwump

http://www.thebusinessdebtadvisor.co.uk/html/right_solution.asp
is who we are meeting tomorrow they have mentioned a £10,000 lump sum in year 4 but we are ok with this.
I didn't know we could extended by 12 months instead but she will tell us all that tomorrow i guess.
My husband and I see this as easier than the horrific way we have been living,robbing peter to pay paul,juggling everything.We hope to face our demons and knuckle down and get debt free in 5 years.
The budget they are suggesting is doable it gives us more than we have been living off for the last 6 months.
My husband is due a pay rise in 4 months Of up to an extra £9000 per year so will they take all of that?

missymugwump

Is there any allowance made for family holidays,childrens birthdays etc.. or are they supposed to go without also?
Can we build a modest sum into our budget for this?