Payments into childrens trust fund

[jasperyogi]

Hi everyone,
Just been thinking.....We pay £135 (combined) a month into trust funds for our children out of the money that will be allocated for living expenses (should the IVA be accepted). Once they see the payments on our bank statements at the review , or whenever, can they request it is paid into the IVA as its not listed as an expenditure. And if they can is there anything we can do to maintain these funds? Dont think they will be able to ask us to cash them in as they have only been active for 2 yrs so wont be worth anything yet, and wont mature for another 16 years. But I'm concerned they may ask for the extra £135pm as we wont be able to afford to keep paying into them if that happens.

Why spend life worrying...when you can spend it smiling!!

[MelanieGiles]

Hi there

This sort of expenditure is unlikely to be allowed - and I can't see how you could fund such high payments out of housekeeping. Is this where the money has been shown in your IVA proposal documents, and is your IP aware that these monies are being paid over?

The money you have already paid will be safe, but you should be maintaining these payments at the expense of your creditors. There will be time enough to catch upon these important payments for your chidren once the IVA has concluded.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[jasperyogi]

Hi there melanie,
we have an income of £1710 incoming and have £947 expenses so we are offering £763 (46.8 pin£) to the IVA.We owe 59k. We are going to try to maintain the payments from our own expenses money. I know it will make things a bit tighter but we are hoping to make it work. We were advised by our DMP advisors at the beginning of the plan not to mention it ...so we have just carried the same list of expenses over to the IVA as its the same company sorting it all out for us. They havent listed it in the proposal at all but they will obviously pick it up at some point via our bank statement but no questions about it yet...despite all the paperwork being done and a proposal put forward. But will they request it is added to the payments to the IVA? Can they increase payemnts at the review if our circumstances haven't changed?

Why spend life worrying...when you can spend it smiling!!

[jasperyogi]

If we have to stop paying into it though even if its because the IP has requested it or we are finding it too much of a struggle, can it be frozen or would we loose it all?

Why spend life worrying...when you can spend it smiling!!

[Adam Davies]

Hi Jasperyogi
It,s admirable that you want to continue with the trust funds for your children but I,m not sure if it is the right thing to do and am surprised that you were told to keep this quiet.You are asking your creditors to write off 30k of debt whilst saving 8k for your children.
It,s really upto you but my advise would be to be upfront with your IP about these payments and see what they have to say.
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

[jasperyogi]

Hi andy cheers for the advice, just thought if we just kept paying it and tightened our own belt even further by making cut backs else where that it would be ok. The good thing us we quit smoking a month ago in preperation so at least something good has come out of it hee hee!! I'll just freeze the funds I think, have just read the policies and this is ok. I think and leave the proposal go through as it is. Dont want to put a spanner in the works this close to the meeting. At least then if its okey we will have the original funds allocated to us to live on.....I was picturing beans on toast for the next 60 months!!!! having said that it would have been worth it!!

Why spend life worrying...when you can spend it smiling!!