www.iva.co.uk

Hi guys

I am fairly new to this whole IVA process. I have basically now got my proposal from Blair Endersby and I am just about to sign however, after reading a lot of posts on this forum I have now got myself a bit worked up and worried. I thought I knew what I was getting myself into and now I am not so sure. I am going to speak to my IP too but wondered if, in the meantime, you guys could clarify a few questions I have for me? OK, here goes:

1. How likely is it that I will be made bankrupt by my creditors if they don't approve the IVA? I thought it was a case of if it wasn't approved then it would be back to square one and I could either carry on trying to scrape enough together to pay them or apply for a DMP.

2. Usually I take out all of my money that isn't allocated to a direct debit or standing order in a lump sum with my debit card and just use cash to pay for my cost of living i.e food, petrol etc etc. Can I not do this anymore? I mean, it says the IP checks my expenditure and intervals so do I have to provide receipts for what I have spent? Again, I thought it was a case of I have control of my money as long as I (a) don't take out any more credit, (b) keep up with my agreed payments and (c) hand over half of any bonuses or overtime as per my proposal. I kind of assumed that the rest was mine to do with what I wanted i.e. if I spent less on food one month I could spend more on clothes?

3. What happens if I am particularly frugal one month, can I use the left over money for something else or does that have to go into my IVA?

Sorry if they are obvious questions but I have started to get really worried about whether I am doing the right thing.

Thanks so much

It is very unlikely that creditors will make you bankrupt if the IVA is rejected - then they would probably get no money and they would prefer to be able to pursue you directly for repayment.

You will need to discuss with your own IP the level of control they wish to exercise on monitoring your budget. I personally trust my clients to provide me with honest and truthful information at the year end, and rarely ask for supporting documentation to be provided unless the increase in expenditure is unusual.

Savings are a good idea during the IVA as there are bound to be one or two rainy days, so if you can put a little aside one month that is a good thing to do.

Hi Popcorn

I can't answer most of your queries and I'm sure an expert will help soon, but I'm almost sure that if you save on your I & E one month it is yours to keep..

oops didn't realise Melanie was posting at same time.. and she is far more an expert!!!

Thanks guys for such a quick response. It is such a worrying time. I absolutely love my job but there is a clause in it about becoming bankrupt but not about entering into an IVA so I would gutted if they petitioned for bankruptcy.

I'm glad I can at least try and save a little bit, things always seem to crop up with me. Just had to replace the bath for instance as it developed a huge crack in it !!!

My employment is same work for HMRC.. bankruptcy would not be an option.. I am waiting for proposal from IP so creditors meeting woill be next step. I know exactly all the emotions you are going through and from other people on heres replies to my questions it is a natural feeling.. you have taken the first steps so hopefully the only way now will be forward!!