really really worried

susieanne

It was the creditors meeting today and ive been told that my creditors are disagreeing about my income & expendiure , basically the creditors want over double the amount that i was told i would have to pay into a IVA . I have to wait now while they all argue some more to try and get the amount down . I am so worried i just thought that my creditors would accept or maybe i would have to pay alittle more but more than double theres no way i can afford that
I have no idea what happens from now wish i had just carried on with my DMP now

Depth_Charge

susieanne wrote: »

It was the creditors meeting today and ive been told that my creditors are disagreeing about my income & expendiure , basically the creditors want over double the amount that i was told i would have to pay into a IVA . I have to wait now while they all argue some more to try and get the amount down . I am so worried i just thought that my creditors would accept or maybe i would have to pay alittle more but more than double theres no way i can afford that
I have no idea what happens from now wish i had just carried on with my DMP now

Hi

Double!!

Hope it turns out OK

Have you other options maybe?

FiatFan_2

Have you gone through one of the debt charities? I'd be quite surprised if they'd try and put through an iva that would be that far off the mark the creditors would want double, normally they'll only put ones through their confident will be accepted.

How long had you been on a DMP prior to the application?

Anondebtadvisor

What areas are they asking you to cut down on in your expenditure?

susieanne

Been doing my own DMP for 3 years everything was fine except i knew at the rate the DMP was being paid my debts would never be paid off which was a worry being in debt for life . It was suggested to me that i consider a IVA which to me seemed the best idea i was told i would have to pay similar to what i was paying with my DMP which is what i can afford so debts paid off in 5 years .

The creditors are mainly disputing about petrol costs because we have 2 cars which we need both for work i think its a few other things too .

The proposal was put through that i pay £120 per month but they are wanting £256 i cant understand how them figures are miles apart .

There is another meeting planned but what happens if the creditors wont budge from £256 ? What would happen from then what options do i have ?

Anondebtadvisor

Your IVA company will negitiate with the creditors to see if the creditors will agree to lower the increase they require. Sometimes i think creditors have no idea of how expensive fuel is in the real world!

If they wont agree to lower the amount you will have to consider going back into the DMP or bankruptcy.

FiatFan_2

did your iva company ask for a justification on the amount of fuel you put in your I&E or did they put it down for you?

we had to provide justification in a spreadsheet of journeys for the amount of fuel we use in two cars, so far we've always been over as fuel cost is such a variable and it's rose 1p a day here for about a week or more.

as the iva company should be working in your best interests, am sure they'll get some agreement from the meeting, which they'll put to you to consider. dependant on your other allowances, they may lower fuel and raise something else to offset the cost, just depends how close the figures are i guess

susieanne

I sent the iva company all my bank statements so i suppose they must have gone off them for fuel costs .

I just wondered if this was the norm in a creditors meeting for creditors to want more ?

I know i had this all the time when i was setting up my DMP they always wanted more

UpToMyNeckInIt

Hi susieanne,

Some good advice here already. You probably know what your options are: DMP vs IVA vs BR.

Just a thought: why don't you run your I&E past a couple of other insolvency practitioners to get a second opinion? Google 'insolvency practitioner reviews' and click on the first non-sponsored (not in the shaded box) link, and contact a couple.

Also try getting advice from one of the debt charities.

Remember, an IVA is a 5-6 Year working relationship that you are stuck with (short of failing and going bankrupt). So you want to make sure you are comfortable working with whichever firm you choose.

Good luck.

cheesedoffwithdebt

sorry to hear you have come across this hurdle.
In very brief terms it sounds to me like the IVA company are making errors of judgement- as others have said, if creditors are aware of the number of miles you travel and the likely costs of fuel then it should be no problem. What may really be the case is that as they have to accept the IVA as a settlement they may be concerned that what's being offered is not enough- and a good IP would have an idea from the outset about what is more or less acceptable.
Before the creditors meeting on mine a couple of creditors objected to some very minor budget items, i.e. pet insurance and mobile phone costs even though I was stuck into those payments and half way through a contracted period. However it would have not made that much difference but they were overturned anyway and it went ahead at the original proposal.

There are guidelines that IP's know about what creditors will generally accept as repayment of the original debt, it used to be about 25% but I've heard in some cases that has gone up.

SO I'd say get a second opinion frankly, it might not be what you want to hear (bankruptcy for instance) but it's better that there is an honest appraisal of your chances.

It's hard without knowing your total debt to make more comment but I really hope you get this sorted.

susieanne

Thanks everyone for your replys just to let you all know everything turned out good in the end , i have to pay an extra £15 per month than what i was expecting but at least it didnt turn out to be double so im very happy .

It is a relief but still unsure what me having a IVA means like when i am renewing my car insurance & home insurance will i have any problems ? Will the insurers still let me still pay by installments ?

Im i likely to come up against any other huddles because of my IVA ?