Hi, me again!
We are in the early stages of proposing an IVA, and due to high income/high expenditure we are not confident that we will be successful. All our outgoings are genuine, and constitute about 80% of our monthly income. As our debt costs us another 34% of our income, it is easy to see why we have got into a complete mess! (We owe over £100,000, mainly as a result of consolidation loans over the last 12 years))
If , on the day of the meeting, the creditors reject the proposal, and they want the dividend to be increased, do you make a decision there and then over the phone, or is this when you have an adjournment for a second meeting?
If the creditors wanted to add 10% for example, by squeezing the margins of the expenditures, such as food and clothes, and although you might just manage by being very frugal for five years, is this really realistic? Or are you better to cut your losses, and enter into bankruptcy? I understand that our creditors can be tricky, and will go through our expenditure list with a fine tooth comb due to the amounts we pay for various things.
Would the OR in bankruptcy challenge why you didn't increase the dividend to creditors if it was theoretically possible, although unlikely to succeed over the five year period?
We are keen to avoid bankruptcy and to pay back as much as we can via an IVA, but I anticipate that five years with £50 a month contingency fund is going to be nigh on impossible with three kids.
We are using a highly recommended IP (who is a regular poster on the site!)whom we are putting all our faith in, but understand that ultimately the decision is down to the creditors.
Any thoughts?
Thanks
Helen
