IVA Percentage of Income?

debtdalek

We have our creditors meeting this week and are worried that even though we have been very honest about our actual income and expenditure to offer them the highest amount that we can, that they will still ask for more at the meeting. As it is, we are still going to have "cashflow" issues given that some months we have quite a lot less income and that the bills have been averaged, so most months are actually higher.

My question is that given that the essential expenditure, including the IVA payments, amount to approx 75% of maximum income, is there a % under which they cannot reasonably expect us to exist on?

I would add to this that the IP has deemed car insurance, road tax, diesel, MOT, car maintenance and union fees as being non essential!

I do hope that someone can help us with this point as we want to be in a confident position to argue against any request for a higher payment to the IVA. I know that we don't have to accept it, but to be honest after two months down this application route, we don't really have a viable alternative.

By the way, just to clarify, we are not asking about the % the creditors receive of the original debt, but the percentage of our income we can reasonably be expected to live on.

adyj73

I would add to this that the IP has deemed car insurance, road tax, diesel, MOT, car maintenance and union fees as being non essential!


If I was you I would change IP Company as that's ridiculous (except the union membership which is non essential)

chirpychick

I dont know the answer to your question but for us they are taking just about 1/4 of our income. Its very difficult, but within 6 months you learn how not to spend and how to budget more efficiently than ever before. If you are worried speak to them and ask the questions.
Good luck, its a very stressful time and i wish you all the best.

FoggyBrain_2

Hi. They don't do %ages ! It's purely your total income, ledd the essebtial outgoings = disposable income and all of the DI is paid over.

As mentioned above, their exclusions are ridiculous. Might I ask which company you are going with ?

Their comments regarding your "non-essential" outgoings lead me to be wary of what they have allowed you for the rest of your budget !!!

debtdalek

It's Payplan

FoggyBrain_2

Ah right -- in that case I am not surprised. From recent comments made by PP clients here and elsewhere they seem to have a (possibly new) rather unhelpful staff member taking queries of late! Ask to speak directly to your IP.

If you pop over to https://www.iva.co.uk one pf Payplans IP's, Nick Payne, posts over there and might be able to advise. He has come to the rescue a fair few times.

Payplan_company_representative

I am slight confused by this post. debtdarlek, if you do go onto iva.co.uk you will find Nick Paynes email address, he will be able to go through things with you as I think thnigs have gotten a little mixed up.

Payplan_company_representative

Just to clarify a few things, we split our expenditure into categories. Essential expenses included rent, mortgage, council tax and all of your utility bills. Other categories include housekeeping, travel and phone. Just because these aren’t listed in essential expenses doesn’t mean that we do not see the, as being something that you need to have in your budget.