my incoming and outgoing - what would i pay?

samuelsmommy

hi

Been advised by CAB today to go down iva route, but I am a little confussed as to how much i would have to pay each month into the iva and hoping you guys can help please?,
i have debts totaling 21k and these are my incomings/outgoings



monthly -

Net wages 2220 (partner also receives 2 x 10.50 child tax credits and 133.20 child benifits, unsure if she entitled to jsa as not working so poss another 65pw incoming ? )



OUTGOINGS


rent - 300
council tax - 120
car insurance 64
car tax 12
petrol (needed for work) 150
shopping 450 ( 2 adults a toddler and a baby)
tv licence 23
house insurance 12
life insurance 9
mobile 25
sky tv 48
net 20
300 (2 x 150) into kids halifax save for it accounts
gas/elec 80
water 25



also owe my mom ( she paid off some debts) around 10500 which i am paying off 250 a month


many thanks

Tixy

Your monthly payment would be based on what you can afford after basic household expenditure. Whatever amount this is, is the proposal that would be put to your creditors as what you can afford within an IVA. They will then decide whether or not to accept your IVA.

The allowances are fairly tight and do not allow for luxuries or what they consider to be excessive spending, and do not allow for all of the items you mention above. Some of your costs listed above would not be considered acceptable (the savings for the children etc and sky tv) but they may allow other costs -such as clothing etc (unless you have already included that in the shopping category) and car maintenance.

The debt to your mother may be an issue.

What have CAB advised from here? do you have another appointment with them? have they recommended an IP to approach?

Exactly what allowances you would be allowed will depend on your circumstances. If CAB have not advised you on your next step I would consider asking for advice from another source - http://forums.moneysavingexpert.com/showthread.php?t=2279289

Might also be worth a read of this if you haven't already - http://www.moneysavingexpert.com/loans/pdf-iva-guide.pdf

As a seperate issue how far short are you of your minimum payments each month? if you cut right back, stopped the savings etc could you possibly make your minimum payments instead of having to go down this route?

As from the figures you have put above you have £2374 income and £1638 outgoings. If you stop the savings you then have £1036 per month to pay off your debts, even after taking out the repayments to your mother you would still have £786 for monthly repayments, which doesn't seem bad compared to £21k of debts. Just wondered if you might not be debt free a lot quicker that way rather than going into a 5/6year IVA.

Nargleblast

As Tixy has said, your IVA payment would be whatever they feel you can afford after essential expenditure. Your payments to your mother are unlikely to be accepted, although you could argue the case if you had documentary evidence of receiving the loan (eg bank statement) and of making the payments regularly into her account, but you would have to talk to the IVA company about this.
The savings into the childrens' accounts would have to come out of what you had left over after paying your IVA payment every month, so you would have to factor that into your budget (by increasing amounts budgeted for food, clothes etc.). I doubt though whether that would be feasible from the figures given, so the savings accounts might have to go on hold for a while. I am sure others will be able to help - Charco is one that comes to mind who works in the industry so knows a fair bit about IVAs.

niccatw

Hi there, I can't actually offer you information on IVAs as I know nothing about them, but I thought you might like to know that my debts are larget than yours (ecluding the payment to you mum, if that's not included in your 21k total) and my net income is a good £500 or more less and I manage to cover my debt repayments without the need for IVA or DMP (both of which I looked into a few years ago but decided to see how I'd manage going it alone).

Have you sat down to work out a budget and are you able to meet all your debt repayment costs without the need for IVA or DMP. It might be feasible for you based on the information you have given in your post. It might also mean you have scope for still adding to the children's savings, even if you perhaps reduced the amounts.

Good luck whatever route you decide is best for you and your family .