few questions for those on iva, please

sofedup_2

hello.

so we have been thinkin about an iva for couple yrs now only where to scared to do it. looks like we got no choice now tho as our situation has got a whole lot worse and cccs recomends iva.

i wanted to ask if i owe money to my family can i still repay this or will the creditors want the money. i wud like to pay my mum back each month as she lent us her savings.

also what happens at the reviews do payments get higher each year

can you settle an iva and how

whats it like being on a iva is it really tight n strict, no birthdays or xmas or goin out for meals etc.

do you have to show were all your money is going and explain this.

sorry for so many questions, its a huge scary thing n am slightly worried i wud regret going in to one

thank you x x

Charco_2

i wanted to ask if i owe money to my family can i still repay this or will the creditors want the money. i wud like to pay my mum back each month as she lent us her savings.
In an IVA, family members will be asked to step aside so that all monies go to the creditors. Still tell your IP about the mines owed because family members will still have voting rights in the IVA which may help to see your proposal accepted. (It's silly, and not what happens in Scotland i believe but the idea is that you would then pay your family member back in five years when it's all over)

also what happens at the reviews do payments get higher each year
the reviews are just a small check up to see if your circumstances have changed. Did you (or your partner) receive a payrise during the year, did a dependany child turn 16/18 during the year and so they are no-longer dependant. If your circumstances have changed then your payments might change, if they haven't changed then payments shouldn't change.
can you settle an iva and how

whats it like being on a iva is it really tight n strict, no birthdays or xmas or goin out for meals etc.
It's no picnic obviously and no, there are no allowances for birthdays or christmas but there is a general miscellaneous/contingency/sundries and emergencies allowance which can be about £30 for a couple with one child. Also, various expenses will be based on guidelines/educated guesses so if you're allowed £250 for food and toiletries you can try to make a saving in there (with the help of the meal planning boards on these forums perhaps) and you may find there will be some left over to help out (you could also use these savings - if you make any - to pay your mother back)

"do you have to show were all your money is going and explain this."
Your IP will draw a Statement of Affairs with you - basically an Income and Expenditure of the household (what you earn, your partner, benefits, tax credits etc minus reasonable expenses). The expenses will mostly be based on guidelines but some costs will obviously be verified from your bank statements (rent/mortgage, insurance, gas/electricity, road tax)

"sorry for so many questions, its a huge scary thing n am slightly worried i wud regret going in to one"
Unfortunately there are no crystal balls for this... you might also regret it if you dont go in to one!
The best you can do is look for as much information as possible from a few different sources and just have the confidence that you are informed enough to make the decision for yourself... It is your decision at the end of the day!

memberme

We've been living with one for a while and have 2 kids. All parties want it to succeed so only a realistic cost of living will be accepted by creditors anyhow. There is a fixed sheet and to be honest it is quite generious. We are left with around a thousand a month for everything except utility bills, mortgage, iva payment, insurances, poll tax, telephone, broad band, car insurance and normal monthly bills...so to be honest there is not a lot to chuck around but you can certainly aford a meal out now and again and a few pints.

memberme

basically to clarify the 1000 we have is to cover, food, childrens and ours clothing, petrol (2 cars) mot's, car tax (can't really split that monthly) cleaning stuff for house and yourself, entertainment, nursery costs. The other stuff for running a house hold is all costed in...depends what you owe and earn to some degree. we owed 200K and earn 3Knet a month. IVA detailed at 21pence in the pound (therefore 42pence for joint items). Get a good Ip..Cleardebt were great