IVA and Stopping Direct Debits

debtfree2016

Thanks all, you are a couple of steps ahead of me but your advice and opinions count. Going to open a current account this week and get all my dd and so for utilites, mortgage set up and payments come out at the end of the month being April....
I should imagine i would get an answer as to my status from an IP before i need to miss any payments, do you know if they require copies of payslips or is just bank statements? will they require receipts of copies of bills in the future as i plan to only keep money in the bank account for DD's and SO's only the rest will be drawn as cash and used to pay for shopping, travel, and all other expenses or will this be seen as trying to pull the wool over their eyes..... decided that cash is king and from now on if its not in the pot we go without...

judojub

Hi!
I had to provide last 3mths payslips, last 3mths bank statements for all our accounts, proof of loan agreements, proof of Life Insurance and Home Insurance, proof of ChildCare costs, Council Tax!
Definitely good to get that bank account set up. I think if you have to make any big purchases in the future then i would certainly save receipts just incase as if any of your expenditure goes up. Save receipts etc incase they want to see evidence of this (receipts for petrol for example).
As for the cash part. We do exactly the same. With draw our budget each week for shopping, petrol, nursery fees etc and when it's gone, it's gone!

debtfree2016

Thanks Judojob...
I try to sell items on ebay as well which would go through Paypal... not big amounts would this be considered and income and if so could it actually be tracked??? sorry you may not know the answer but i'm sure you have asked many questions in the past.. I'm thinking of Pay Plan, i know there are a few. I have copies of all the paperwork and i have as said before been on the website for an expense guide which looks very workable..... i have a feeling that the IVA wil become very popular over the next 8 months due to cost of living and BOE interest rat going up to possibly 6% within the next 2 years

judojub

I think the ebay thing would be fine so long as it's just bits and bobs and not some kind of business! Sure somebody else will comment on that further for you though. Yup, unfortunately more and more people are finding themselves in the thick of such financial trouble that IVAs and Bankruptcy are routes that more and more of us will be taking

debtfree2016

I can't see why the creditors would refuse, it's better than nothing and they also have the 5 years of waiting for the house prices to go up for remortgaging. I currently don't have a pension that i'm paying into although this is an allowable expense (didn't do it becuase lack of funds) although i might see if i can get this done before applying as a 60 months of Pension contributions is better than 60 months of reducing debt)

judojub

You would think so wouldn't you! Myself and OH have pensions. I only hope the creditors don't ask us to freeze them so as to put extra into the IVA.! They're the only 'savings' we have so to speak. But then again we are both still young(ish) to make this back up I suppose!

debtfree2016

Hi Judojub, if you don't mind me asking please don't answer if you don't wish to .. what was your total debt at the time of applying for an IVA, mine is around £72k and currently paying around £2k per month (inc INT)..... i see lots of emails about the pence in the pound from 17p to 30p... i look at mine and expect to pay around 60p in the pound do i have this all wrong or am i missing something?

judojub

No two cases are the same and I think it all depends on your level of debt, how much you earn, your income and expenditure. I owe just over 40k and will be offering a dividend of just 17p/£1 come my meeting on Monday. It is very low and I am worried but after much discussion with our IP this is a realistic offer for us right now. Your offer of 60p is a very healthy return for your creditors. Just make absolutely sure that you have included all that you can on your I&E and that you are absolutely sure you will be able to live within those budgets. Discuss things further with your IP if you have any queries and make sure you are 100% happy.

debtfree2016

Thanks Judojub.... good luck for Monday... you appear to have your head screwed on... let me know how you get on..

judojub

LOL! My head is anywhere but where it should be at the minute! Thank you very much and I think I may be shouting from the roof tops come Monday evening, especially if I treat myself to a celebratory glass of wine!