Do I do an IVA?

RAS

Wannabehousebuyer said:

ManyWays said:

Bailiffs for council tax have no right to enter your house unless you invite them in; do not do this. Do you own a car that is parked outside?

No it is a company car , thankfully 

You need to make sure that Rundles know this. Message them and put something in the car that makes explicit that it is a company car.  

ManyWays

So Rundles will just return the debts to the council if you refuse to let them in, but that is a very uncomfortable level of council tax debt.

Could you post a statement of affairs here and also say how variable your income can be?  If you could actually afford £300 a month rather than £150 a self-managed DMP prioritising the CT at the start may make more sense

RAS

Wannabehousebuyer said:

sorry I think I must have missed that, Like 3 years I think, this is one for 2022-23 £1786 
other two I assume are similar and then they have one for e-on (4 accounts total) for 2008£  

You need to look up your Council tax record on-line and find out what you owe for each year. 

Are you up to date on this year's CT? If not you need to get that up to date urgently.

The "one for e-on", presumably this is a CCJ, or perhaps 4 CCJs?

Wannabehousebuyer

Sorry for delay, I had some bad family news, so this all was pushed to the side.

I havent included debts, but its about 16 creditors at £37,000 inc the CCJ's

CCJ 22-23 Ctax 
CCj 23-24 Ctax
CCj 24-25 ctax
British gas ccj 
eon - ccj 



[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Household Information[/b]

Number of adults in household........... 1

Number of children in household......... 

Number of cars owned.................... [b]

Monthly Income Details[/b]

Monthly income after tax................ 2500

Partners monthly income after tax....... 0

Benefits................................ 0

Other income............................ 0[b]

Total monthly income.................... 2500[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 750

Secured/HP loan repayments.............. 0

Rent.................................... 500

Management charge (leasehold property).. 0

Council tax............................. 147.5

Electricity............................. 75

Gas..................................... 75

Oil..................................... 0

Water rates............................. 45

Telephone (land line)................... 15

Mobile phone............................ 60

TV Licence.............................. 14

Satellite/Cable TV...................... 60.5

Internet Services....................... 0

Groceries etc. ......................... 500

Clothing................................ 20

Petrol/diesel........................... 75

Road tax................................ 0

Car Insurance........................... 0

Car maintenance (including MOT)......... 0

Car parking............................. 0

Other travel............................ 0

Childcare/nursery....................... 0

Other child related expenses............ 0

Medical (prescriptions, dentist etc).... 0

Pet insurance/vet bills................. 0

Buildings insurance..................... 15

Contents insurance...................... 15

Life assurance ......................... 0

Other insurance......................... 0

Presents (birthday, christmas etc)...... 20

Haircuts................................ 20

Entertainment........................... 0

Holiday................................. 0

Emergency fund.......................... 0[b]

Total monthly expenses.................. 2407[/b]

[b]

Assets[/b]

Cash.................................... 0

House value (Gross)..................... 150000

Shares and bonds........................ 0

Car(s).................................. 0

Other assets............................ 0[b]

Total Assets............................ 150000[/b]

[b]

Secured & HP Debts[/b]

Description....................Debt......Monthly...APR

Mortgage...................... 130000...(750)......4.1[b]

Total secured & HP debts...... 130000....-.........-   [/b]

[b]Unsecured Debts[/b]

Description....................Debt......Monthly...APR[b]

Total unsecured debts..........0.........0.........-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 2,500

Expenses (including HP & secured debts). 2,407

Available for debt repayments........... 93

Monthly UNsecured debt repayments....... 0[b]

Amount left after debt repayments....... 93[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 150,000

Total HP & Secured debt................. -130,000

Total Unsecured debt.................... -0[b]

Net Assets.............................. 20,000[/b]

[i]Created using the SOA calculator at www.stoozing.com. 

Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

elsien

Sorry to hear that things haven’t been great of late.
What is jumping out at me for that is the £500 for groceries. I am on my own and mine includes household cleaning stuff as well and it is nowhere near that.
Do you need a special diet, is that a guess, have you looked at receipts to see where it’s going? Some of that could definitely be going into an emergency fund.
Nothing  for entertainment, do you never go out and do anything? 

sourcrates

Just a quick first response, with 5 CCJ`s and being a homeowner, an IVA would overturn all of those judgements, and you would pay those and your other debts through the IVA instead.

The issue you are going to have is your disposable income for debt repayment is only £93, that`s not very much to offer creditors in an IVA, so they may reject it.

I suspect the SOA was done in haste, and is not 100% accurate, you need to find approx. another £100 or so from your budget to add to your disposable income, so the amount you can offer for debt repayment looks more reasonable.

How you do that I don`t know as a lot of your SOA is missing, and would not be sustainable over the 6/7 years of an IVA.

ManyWays

Sorry to hear about the bad family news, can you say what has happened so far about the CT arrears with the bailiffs? Have you at any point let them into your flat? 

Are you making ANY payments to unsecured debts at the moment? And have any of these debts been taken out in the last few years?

Your groceries are a bit on the high side, above the amount you would be allowed in an IVA or bankruptcy unless you have any specific health reasons why they are so high. But a lot of the rest of the SOA doesnt look sustainable for the 6 year period of the IVA (no emergency fund, no entertainment, no travel costs, no medical etc etc). Overall I cant see how you have £150 a month spare to pay to an IVA or DMP.

Can I ask if there was any particular reason why you got so far behind with the council tax and energy bills? 

How sure are you about the 150k valuation on the flat? 

Wannabehousebuyer

elsien said:

Sorry to hear that things haven’t been great of late.
What is jumping out at me for that is the £500 for groceries. I am on my own and mine includes household cleaning stuff as well and it is nowhere near that.
Do you need a special diet, is that a guess, have you looked at receipts to see where it’s going? Some of that could definitely be going into an emergency fund.
Nothing  for entertainment, do you never go out and do anything? 

I just included washing stuff, cleaning bits etc. my partner lives in the house but doesnt contribute so that is food for us both and 3 dogs. 

I didnt feel like i could budget for enteratinment as i have so mjuch debt 

Wannabehousebuyer

sourcrates said:

Just a quick first response, with 5 CCJ`s and being a homeowner, an IVA would overturn all of those judgements, and you would pay those and your other debts through the IVA instead.

The issue you are going to have is your disposable income for debt repayment is only £93, that`s not very much to offer creditors in an IVA, so they may reject it.

I suspect the SOA was done in haste, and is not 100% accurate, you need to find approx. another £100 or so from your budget to add to your disposable income, so the amount you can offer for debt repayment looks more reasonable.

How you do that I don`t know as a lot of your SOA is missing, and would not be sustainable over the 6/7 years of an IVA.

yes you are right, i just copied what step change had suggested and tweeked a little. I am commission based so that wage fluctuates, again just used the median that SC recc. they made it fit by about £20. 

Wannabehousebuyer

ManyWays said:

Sorry to hear about the bad family news, can you say what has happened so far about the CT arrears with the bailiffs? Have you at any point let them into your flat? 

Are you making ANY payments to unsecured debts at the moment? And have any of these debts been taken out in the last few years?

Your groceries are a bit on the high side, above the amount you would be allowed in an IVA or bankruptcy unless you have any specific health reasons why they are so high. But a lot of the rest of the SOA doesnt look sustainable for the 6 year period of the IVA (no emergency fund, no entertainment, no travel costs, no medical etc etc). Overall I cant see how you have £150 a month spare to pay to an IVA or DMP.

Can I ask if there was any particular reason why you got so far behind with the council tax and energy bills? 

How sure are you about the 150k valuation on the flat? 

thank you!

nothing as of yet, i said i was preparing for IVA and they have left me alone.  i am making zero payments currently, they have all been taken in the last 2-5 years. 

yes there needs to be some jiggery around, and I hope to start earning more commission in my job, Its just deciding if the IVA is in fact the best move

Im an estate agent, and the property is shared ownership, so pretty spot on, i think.