Hey Charco, your advice please

mia1830

Hi Charco,

Well I have had my proposal and all seems good. We will be paying about 35p to the pound. We are looking at £160 for 27mths then it will go up to £317 as our HP will be paid out on our car this will be for 33mths then another 12mths as we won't be abe to re-mortgage as we are in a co-ownership house with a 50% share and they will not agree to us re-mortgaging for debt.

Our meeting is on the 14th december so heres hoping its accepted. What I would like to know is if they ask us to pay more than the £160 and we think we will not be able to manage it, is that the end of the line is there no meet in the middle? Also how much equity should we have in year 5 for them to get another years payment? if there is little equity does this mean we don't have to pay another year? Thanks in advance for any help

Charco_2

Well the first part (the £160 negotiation) can get quite complicated.

Ideally, your IVA will be airtight and fit well with the guidelines on expenditure so your £160 original offer should be acceptable. However, if one of your creditors pushes for an uplift, say £20, bringing your monthly contributions to £180, you could hold your ground and refuse to budge - it is just part of the negotiation after all... GT will know if they can refuse the uplift anyway if less than 25% of the creditors are looking for it!

HOWEVER, I wouldn't go getting all hung up on it (and dont cut off your nose to spite our face!)

Check your paperwork! If you do accept the uplift (even if you do feel that it is unaffordable) and the IVA is accepted and then it turns out as you expected that the repayments are unaffordable then you can contact your IP and have the repayments reduced again by up to 15% without having to resort to a new creditors meeting (sneaky I know but why do they put the expenditure guidelines in place only to ignore them and uplift the monthly repayments anyway!?)

Wouldn't worry so much about the equity for now. You'll only be expected to address any equity that is actually REALISABLE by you. If you are unable to release it (due to the 50% co-ownership agreement) then you probably have no realisable equity!

mia1830

Thanks Charco,

Your are a great help as always. Funny I had been thinking the same thing if it went up around £20 or so I would pay it for a few months and then give them a call. Thanks again, I will let you know what the outcome is. :beer: