IVA set to fail at the first hurdle

Bald_Runner

My wife and I have proposed a joint IVA and the creditors meeting is tomorrow – 20th March. It was adjourned from 14th because Egg wanted more time to consider our proposal. I have heard today that the proposal is likely to be rejected because Egg want us to cancel our Sky subscription (£19 per month) and they think that we have been allowed ‘too many allowances’ to the value of £170. They also want other cuts and want a clause which in theory would give them access to my pension. Because of what we owe Egg, they have the ability to fail the IVA proposal despite the other creditors votes. Our proposal will pay £69000 over 5 years – before the IVA fees. We owe £78000 so I feel we are paying a good return.
I intend to let the proposal stand and not bow down to their demands. IVA is meant to be a way of paying creditors an affordable sum. If the proposal is rejected, and I go BR (I have already booked an appointment at the County Court) I presume the OR will expect to see my initial IVA payment; the one I will not be paying? Or can I justify using it to pay the court fees? What about money put aside for car tax etc? We have some put away for car servicing and MOT due in June - £300

empty_wallet_2

It would be fine to use the money for your BR fee's, you have to get them from somewhere, also any other money you use for essential living expenses will be fine.

I can't believe your IVA would be rejected as your offering to pay back 88% (£1150 a month??) of your debt with the figures you have posted. Have you also looked at a DMP?

Bald_Runner

Actually, it is £1147 but could retire in 3 years. The plan is to embark on a 5 yr IVA then make an offer of a 'full and final settlement after 3 yrs. A DMP would go on for longer