I have my creditors meeting on Monday and my IP's office have called me this morning for clarification on a few things as the creditors are asking questions to some of my I&E.
They are questioning things like how long is left on my wifes finance on her car and when did the children start the school they are at. School fees are included in my i&e and I know they are allowable in BR. Surely the creditors can't ask for me take them out of school?
They also said that as my creds are asking at such a late stage, the meeting may be adjourned on Monday. Is this normal for creds to start asking questions at such a late stage. They have had weeks to do this, so why now?
If it is adjourned, how long is it usually for?
Just when I thought I was getting over another hurdle!!!
Thanks all for your support over the past weeks.
Hi 1973NL. This is not unusual as some creditors do not vote until pretty much the last minute. I do not know your proposal but I can understand the questions raised.
Once the HP is cleared on your wife's car creditors may ask for that money to then be paid into the pot. The same would apply to your children as when they leave school the fees would no longer be paid and your IVA payments could be increased at this time.
The meeting can be adjourned for up to 14 days but if you supply the IP with the information today and it is forwarded to the creditors there may not need to be an adjournment at all.
Hi
As Michael says don't be too concerned, it is quite common for questions to be raised by your creditors.
I am surprised that your IP did not factor in the car payments into your proposal ?
Regards
School fees are not necessarily allowable in bankrutpcy proceedings - it would depend upon your circumstances. If your child is not at a critical stage of their education, creditors may well ask for them to be educated under the state system.
A creditors meeting can be adjourned for up to 14 days.
I am surprised that the question of school fees and the car finance was not disclosed within your proposal - i.e why children need to be at private school and how long the car finance continues for?
Who is the firm that is doing your proposal?
I am sure your IP once appraised with these answers will be able to explain to your creditors.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
How much are we talking in school fees here 1973nl?
Surely any creditor would expect children to be removed from private schooling for the duration of the IVA given that on many occasions part of the reason for the debts is down to mismanagement of funds avaialable.
If there was a specific reason for the children requiring private education this could be argued,
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
If creditors demand that the children are removed from school there is a compromise to be offered. You could agree that when the children reach secondary age they will switch to the state sector and payments can increase then as it would be cruel on a young child to be removed from their school and friends at such a young age.
However, if you are a serving member of the forces and the fees are subsidised by the MOD it should not be a problem at all.
Sensitive issues like this should always be clearly explained in IVA proposals, to avoid the need for unecessary questioning and adjournment at the time of the meeting.
I pay about £780 in school fees per month. My kids are aged 6 & 8 so still at primary level.
The reason for moving them into private education was due to my daughter getting a terrible state education at my local school. There were 34 kids and 1 teacher. When she left she was almost 18 months behind the kids in her new school. My son was at the same school but due to timing his class was smaller and he was doing OK. Logistical reasons meant I had to move them both.
I'll wait and see what the outcome with my creditors is on Monday. If they won't allow the kids to be in private education, I'll explore other options as they are quite settled and moving them is the last thing I would want to do.
My debts are not really down to mis management of money but due failure of a business that went sour due to economic climate. I borrowed more and more in the hope I could save it. Hindsight is a great thing!
Good luck for Monday, I do hope it all works out for you.
Let us know how you get on.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I pay about £780 in school fees per month. My kids are aged 6 & 8 so still at primary level.
The reason for moving them into private education was due to my daughter getting a terrible state education at my local school. There were 34 kids and 1 teacher. When she left she was almost 18 months behind the kids in her new school. My son was at the same school but due to timing his class was smaller and he was doing OK. Logistical reasons meant I had to move them both.
I'll wait and see what the outcome with my creditors is on Monday. If they won't allow the kids to be in private education, I'll explore other options as they are quite settled and moving them is the last thing I would want to do.
My debts are not really down to mis management of money but due failure of a business that went sour due to economic climate. I borrowed more and more in the hope I could save it. Hindsight is a great thing!
I'll keep you posted.
Its never easy when you want to do the best for your children. Due to me being in the forces my son had to move school a few times(didnt want to put him into a private/boarding school),and personally I felt it did him no harm,but thats all going to depend on the character of your children. Is there no possibility of a state school other than the one they were previosuly in being able to take them on?
Hindsight as you say is a wonderful thing. Good luck with getting things sorted.
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
Like I say moving them would really be a last resort. Local schools in the area where we live are few and far between, most of them packed to the rafters!
I'll see what comes out of the meeting and then make decisions from there.
