A Change in circumstances

cutemum

A few weeks ago I posted on this forum to explain that although my IVA was accepted & that a 3rd party would pay a one off payment on my behalf to settle my debts. However, due to my husband & I getting back together I no longer wanted my mother to take out a loan for me. I hoped that we could now pay each month for the 5 years. I only hope my creditors accept.

Charco kindly suggested that I post an I&E to see if I am giving myself reasonable alloances. I have included what my creditors accepted as allowances for myself and 2 children under five. Now I have been asked to include my husband's income & expediture as part as the family's finances even though the IVA will be in my name.

Income£ £ Average Net Income 2,145(2250)
1150 (OH income)
Child Benefit 134
Tax Credits 41 (0)
Child Support 249 (0)
Total=2,569(3534)

Expenditure
Mortgage694
Building & Contents Insurance 25
Life Assurance 79
Telephone / Mobile / Internet 65
Sky 0 (21)
Electricity 65(80)
Rates 97
Oil / Gas 60(80 oil & 10 gas for gas hob)
Repairs / House Maintenance 20(30)
Car Hire Purchase 260
Car Insurance 40(80)
Fuel 120(140)
MOT & Car Maintenance 40
Car Tax 15
TV Licence12
Childcare 350
Food / Toiletries 295 (400)
School Meals & Meals at Work 100(120)
Dentist / Opticians 15(25)
Hairdressing 15(25)
Clothing / Footwear 40(60)
Sundry (Union Fees; Gifts; Hobbies) 69 Union fees = £14 (100)
OH DMP 0 (288)
(2,476)(3116)
New suggested amounts are in pink
Any comments would be greatly appreciated. I do believe I have been realistic. Please comment if you think I have been too extravagant. Thank you for any pointers.

Charco_2

Are you IN an IVA or who did you agree the original figures with?

How many cars do you now have in the household?

EDIT: I'm half way through drafting a usable I&E for you but would need a few details cleared up.

Whose is the Car HP?
Would the Union Dues not be deducted at source? (Tax deductable)
Your life assurance is high - it will be acceptable but you could definitely find cheaper!
Some of your other expenses are high (but can be moved to other areas)

cutemum

Hi Charco
Thanks for getting back!!

My IVA had been agreed - 3rd party funds of £19500 would setlte £39000. The 1st figures I have given are the I&E given to my creditors who agreed the dividend of 41p. These were for myself and 2 children.

I have contacted my IP who said I could possibly request a variation on the terms of the agreed IVA. Instead I would pay monthly for 60 months. It is likely the creditors will receive a higher dividend this way.

I hope the following answers help you.

In my original IVA my car was included. The HP is in my name. The payments end in 18 months & therefore this money would go towards the IVA. When we split up my OH had to buy a car- this will now be sold- it is a much older car than I have-(my car is 4 yrs old & I will have to try to keep it for the next 5)

My union fees are paid by DD every month.

Would love to get cheaper life assurance but scared to change it in case I make a mess and end up not covered- we always had someone organise this for us= hense being expensive.

My car insurance is so high due o OH having 10 penalty points

Have just increased oil payents- paid by DD as £65 was not enough

PLease note my mortgage is on interest only & I am hoping to keep it that way for the duration of the IVA.

I hope this will help as it will be useful to know that I am not being unrealistic.


Thanks

Charco_2

I dont think any of it is too unrealistic... having a look at your I&E though it would seem that you are going to have a rather large surplus - what sort of figure are you looking at monthly?

The £288 that your OH is paying towards his DMP could be affected... you'll have to calculate how much total household surplus there is, then 67% of that is yours and should go towards your IVA (you earn 67% of the household income), your OH's 33% can go towards his DMP - you can't pay for each other's debt solutions as that would be unfair to your own creditors.

For your OH to have a surplus of £288 (33%) you would need to have a surplus of twice that... £584 (£288 divided by 33, multiplied by 67).

Is £584 the figure you were looking at?

I suspect you are looking for a figure closer to £370-£420 which would be more in line with the dividend you are aiming for!

cutemum

Thanks again Charco- really need adice as to what is the best thing to do.

My OH has only started his DMP a few months. The reason he was able to put so much forward is that he did not pay towards the mortgage when he ws away. As i am the bigger earner I took on fresponsibility for all bills. He did contribute towards the children.

Should he now be going back to the CCCs to explain his circumstances have changed and he is responsible for more now? Should we consider a joint IVA or is it a problem that my IVA was agreed on 3rd arty funds. I feel that I really researched so well before making the jump and now I am scared that my creditors could make me bankrupt as I seem to be wasting so much time. Sorry for the rant. I am now getting the feelings of fear and anxiety that I had pre-deciding to go through with an IVA.

Charco_2

Don't fear or panic. As long as your IP trusts that you are still committed to going forward in the IVA (keep in contact with them) then they will not rush to cause you problems and you'll remain under the protection of your IVA.

You will however need to sort out your expenditure now... I do have suggestion, do you mind if I PM it to you tomorrow?!

Your OH's DMP could be affected but
1) it's a flexible agreement and
2) you cannot be seen to be to be contributing to it when you should be looking after your own debts

It's probably too late for a Joint IVA but he could consider an IVA of his own!?

cutemum

Hi Charco- I value any advice you have to offer. Please send me a PM. Looking forward to hearing from you.

Charco_2

Hey cutemum, i actually tried to pm this to you yesterday but it was too long and wouldn't send.

So I've worked out a way around that now and you should find it in your PM today!

The figures are rough because it is a little bit of a rush job but you'll get the idea...
I don't know how much you intend to offer monthly in your IVA so i've calculated for about £300 (but there is scope to raise that if your IP feels you'll need to... shouldn't be too far wrong though!)