I don't see how anyone can tell you specifically that expenditure in a bankruptcy would not be allowable. The decicision as to what and what is not allowable takes place on a case specific basis and is at the discretion of your individual examiner. If you disagree with their decision, you have the right to refer matters to the Court for reassesssment, and I can tell you now that most District Judges are very sympathetic towards financial support for children's further education - there is a famous test case where a Judge allowed private schooling costs for someone in bankruptcy for their child. The downside of bankruptcy is, however, that you will not know how this is likely to affect you until the bankruptcy order is made - so there is an element of gamble, whereas with an IVA you are being asked to agree things in advance.
I would definately have fought harder on the need to continue to support your son. If there is a matrimonial consent order agreeing the level of maintenance then the creditors ought to respect this - as it is an Order of the Court.
Turning to your stepson, if I am reading things correctly he is being asked to contribute a board and lodge sum equivalent to the level of child benefit you would be receiving for him? This is like comparing apples and pears, and does not appear to take any account of the affordability of that level of payment. If you feel that you can afford an extra £45 then it is not worth challenge, but my concern was that this appeared to have been accepted for you without consultation, unless I have misunderstood your words.
When advising on this forum, I can only generalise and share the benefit of my own experience. I also interact with Grant Thornton on a daily basis in my practice, and generally find their voting teams individual and flexible. I am not aware of any set criteria when it comes to child maintenance or further education costs, but of course I can only relate to issues which come in an out of my own practices. Perhaps Karol could interact on this post and let us know if there is any set criteria for this - and if you feel that the current level of payments is going to be too high why not consider offering to extend the arrangement to counter the costs you say you need to support the children. I've successfully worked on this basis when there has been a need to support adult children.
I don‘t feel that it is appropriate to comment on individual cases on a public forum, however this thread has come to my attention and I would like to clarify a few points about our procedures at RSM Tenon in general.
Where modifications are proposed at a meeting of creditors they are always discussed with the client and it is solely the client’s decision whether or not to accept them. In some cases it is appropriate to enter into negotiations with creditors or their representatives about certain requirements. If the client needs more time to gather additional information or just to think things over then we will always adjourn the meeting. The outcome could be that the modification is removed, rejected by the client or that a compromise is reached.
Modifications are never accepted by the Chairman or Insolvency Practitioner without express agreement from the client.
We always work very hard on behalf of our clients and at the same time strive to maintain good relationships with creditors and their representatives so we can reach an agreement that satisfies both parties.
Mike, welcome to the forum and please speak to Andy Davie about being upgraded to an expert.
IP companies are welcome on here.
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
Many thanks to Melanie who took the time to speak to me at length on a Saturday afternoon and as a result of which managed to make me feel better about the IVA i've agreed to. I'm actually quite amazed at the time and assistance she was willing to give me when I'm not even with her company and it's true to say that she filled in some of the blanks. I would certainly recommend her very highly if I'm ever asked to suggest an IP.
