a couple of questions....

[emma_t]

I am new to this IVA business but am trying to prepare myself for one at present. Thank god I have found this forum as feel more clued up about things now. i just have a few questions if anyone can help me, before I sign proposals and return to IP:

1. I live with a parent and the IP has asked for a signed letter to confirm rent/board payment amount. I have got a letter from mother but I did not tell her the purpose it was for, she has been very ill over the last couple of years and I don't want to worry her. I am wanting to know if she would be contacted by anyone about this or is providing the letter the end of it?
2. I have read much on this site about overtime/bonus payments from work that you have to pay 50% of any awarded. I have no problem with this whatsoever but was wondering about salary increases as read somewhere that you have to contribute 100% of any increase in salary. Do they not allow you to keep any of this as 5 years is a long time and the cost of living rises in that time (what your salary increase would be for). I normally get a rise of about £1,500-£2,000 per year with current job. I feel my expenditure report is accurate at this time but in 5 years with cost of living going up it won't be in a few years without benefiting from some of my salary rises?
3. Sorry another one jut thought of.... When the creditors meeting is held it seems from reading posts on this site that they usually make modifications and ask for more money per month. I am worried about this as my income/expenditure is so tight anyway I may not manage if they do this. Is it advised to add in things you don't need to account for any modifications...

Sorry am new to this and not sure how everything works and would really appreciate any advice
Many Thanks

[MelanieGiles]

Hi Emma - and dealing with your queries in turn:

1 The letter itself should suffice, and no-one should need to contact your mother. Explain this to your IP to make sure that no-one calls.

2 Salary increases are usually taken into account with end of year reviews, at which time you also have the opportunity to adjust your expenditure as well which will increase with inflation.

3 Make sure that you do not accept any increase in payments that you do not feel you can afford. Best to be honest with yourself at this stage and look to another solution, than "jumping from the frying pan into the fire" with an unaffordable IVA payment.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

Appoint me as your IP:
http://www.melaniegiles.com/ivaEnquiry.asp

[emma_t]

Hi Melanie

Thanks so much for your speedy response.
It puts my mind at rest about someone contacting my mother as anyone can see the payments I make monthly as they are on my bank statements as a standing order.

I have just lost my part time job and that is the reason for me looking to and iva as have lost a third of my monthly income. Had a lot of debts but was making all the monthly payments above the minimum requested.
Does it make a diffrence that all my payments are up to date, I see this a a positive and have provided a 'debt narrative',as requested by IP, to explain why I am in my current situation.

By the way if this helps anyone else,I have just applied for a new bank account with the co op (when in initial talks to see if an iva was suitable for me, so nothing proposed yet) and they have supplied me with a new account with a visa debit card (no overdraft facility) - have also opened up a savings account to squirrel away any surplus I have (if iva approved and if any surplus!!!!) for emergancies.
They have been ver efficient and have internet and telephone banking also.

[MelanieGiles]

Hi Emma

It doesn't make any difference that your payments are up to date. As you have just lost your secondary income this is reason enough for you wanting to offer a settlement.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

Appoint me as your IP:
http://www.melaniegiles.com/ivaEnquiry.asp

[Cybus]

The letter signed by your mother should be an end to that particular matter and there should be no reason for anyone to want to contact her.

Your IP should be factoring your overtime in to your proposals. I assume that in determining the level of your contribution each month, you will have used an average figure of your income. This is to allow for the months were overtime or bonuses may be less than others.

You will find that proposals are modified to request 50% of additional income over and above that shown in the proposal is to be paid to the Supervisor for the benefit of your creditors. In determining the amount to pay, a certain amount of your overtime has already been factored in to your income and so you would not be expected to pay that over.

If your salary increases, contact your Supervisor as soon as you know what your pay will be and ask for your income and expenditure to be reviewed. It is most unlikely that you would be expected to pay 100% of the increase for the benfit of creditors. Where expenditure is tight now, I would suggest increasing it a little with your pay increase. I would not suggest that you say all your increase has been accounted for, as that is unreasonable. You should be in a position to offer an increase in the level of contributions based upon the estimated pay increases you are predicting.





Tell it like it is.

[Cybus]

I seem to be experiencing a lag between post submission and it appearing. Hopefully Melanie has already put your mind at rest



Tell it like it is.

[MelanieGiles]

Can I just say that I would not factor any overtime into your salary, as you may struggle make your payments during months when none is earned. Salaries should be presented on the basis of basic figures where possible, and if you get caught by the 50% uplift provision then so be it.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

Appoint me as your IP:
http://www.melaniegiles.com/ivaEnquiry.asp

[Adam Davies]

Hi
Just to agree that it is dangerous to factor in overtime payments into your proposed income because if these stop abruptly you will find yourself struggling to pay.
It,s best to declare your basic income and pay 50% of your OT directly to your IP as and when you earn it.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp