Q's on IVA assets, payments, SOA

MTpockets

Some probably silly questions:

When declaring any assets on entering an IVA, if you have any savings do they demand that you hand over the full amount? (Sounds odd even having any savings I know but it's not a huge amount...)

Also, does this sound plausible?
I was told by Moneyexpert (whom I've dropped as they wanted upfront fees!) that they could get my current debt repayment levels of £600 down to £300 in an IVA.

The SOA/realisitc budget that I worked out means that after a monthly expenditure of £973 with an income of £1540, I am left with £567. Wouldn't the IP and or my creditors ask that I give them all of this...?

Can anyone give me any guideance on my SOA, does this sound realistic, I don't want to under budget otherwise I won't be able to stick to it, nor do I want it to be rejected.... & have I missed anything out I should add??

Rent.................................................£400 (this will rise in Sept 2010)
Bills......... .......................................£120 (this is put into a pot as I share a flat with 2 friends, covers utility bills, council tax, TV and landline/internet)
Phone............................................. ..£35
Travel....... ........................... .............£107
Hair .................................. ................£10
Dry cleaning ................................ ......£5
Food:........................................... ......£150
Entertainment:.................................. ...£65
Holiday:...............................................£25
Clothes:................................................£30
Medical:. ..............................................£6
Other: xmas/birthdays/emergencies: ......£20

Total: £973

Thanks.

althas

1st off GOOD CALL dropping the cowboys who want fees upfront. These sort of people (especially those that say before they even look at things that they can drop your payments by £XXXX) are just cash cows for the owners, they will be usless to you if and when the IVA is agreed. They will have their cash and thats all they care about

2. Before you decide on an IP, have a look at www.iva.com. They have reviews from clients on a lot of IP's, so you can research (like anything) the people you ar planning to go with. Remember, if the IVA is accepted, you WILL be dealing regularly with these people for the next five or six years. So make sure you are comfortable with the IP and their staff

As to the SOA. There are few things to say. There are general guidelines for living expenses, housekeeping and food for 1 person is £XX a month, etc. When you have a serious talk to an IP and go through this, they will go through all of this in fine detail, as it is closely scruitanized by your creditors as part of the proposal. Be realistic and do NOT leave yourself on a complete shoe string. Your IP will want to make sure you have enough to live on, without being on the breadline. There is no point in that, as 1 little thing will tip you over the edge of it, you will have to go bankrupt and your creditors will get nothing

So work out a realistic figure, do not forget things like house contents insurance, dental bills, TV licence, have a look at www.iva.com for a number of IP's, shop around and talk to a few, then decide

Good luck to you in this, it seems daunting and scary, but it DOES get better. I know. I have been there :-)

Charco_2

What savings are you talking about?
How much and where are they kept?
It's most likely that your IP would require that the full amount is handed over for the benefit of your IVA but you could argue a right to keep some of it (or all of it in a jar on your fridge - i didn't say that!)

As for someone saying they could drop your repayments from one figure to another... I would ask them to prove it! At the end of the day you will be expected to pay in what you can afford to your debt solution. A well drawn-up I&E will show what your monthly budget should be but i ludicrous that someone would throw out figures off the top of their head. Certainly I know debt solution companies that wont necessarily inform you of all the allowances you are entitled to when drawing up your I&E so i would know if there were savings to be made, but you couldn't just rattle off figures off the top of your head (and certainly not promise to HALF someone repayments!)

The SOA/realisitc budget that I worked out means that after a monthly expenditure of £973 with an income of £1540, I am left with £567. Wouldn't the IP and or my creditors ask that I give them all of this...?
Yes the IP will look for all of your surplus income but your I&E that you have drawn up might not be so realistic!
(I already sent you a few pointers for your I&E and there are probably more!)

Charco_2

As well as the other pointers I sent you, I have thought of a few other points...

I'm GUESSING you live in near or around LONDON!? (high rent and the fact that your travel was specific at £107 - is this a monthly pass on the tube trains and buses?)

MTpockets

High rent?? Granted it's shared but still not that high for the area & yes, in/near London.

It's a travelcard, already knocked off a zone when I renewed it last to reduce the cost and now walk or get the bus the rest of the way

Charco_2

Compared to other areas of the country, yes, that's high rent! But as for your I&E it would be justifiable given that you live in and around London.