www.iva.co.uk

Am just looking into an IVA with a proposal being put together for me. Family of 4- daughter 29 ( living at home doing a degree locally), 17 yr old and a 15 yr old. Have been told I can't claim for food for daughter as she is not a dependant and would be expected to be working to pay her own way . Allowance being made in proposal is £400 a month- for food ( as I say student daughter being disregarded).

I appreciate the offer to creditors has to be reasonable but I do actually buy her food - a true expense so having difficulty with this as this one. Does this seem right?

It may seem harsh but your allowance is actually between what is allowed for three and four people so your IP may have actually factored something in. Ultimately it comes down to affordability and what you actually spend. If you do spend more and you cannot afford the proposed payments you should advise your IP that this is the case. There is no point in proposing an unaffordable IVA which would be doomed to failure from the start.

Creditors may accept that your daughter does cost money but would expect her to contribute something towards the cost of the home even if it does not cover everything. Also when she finishes her course they would seek higher contributions from you as she will be working or moving out and if you are happy with these type of terms I am sure a reasonable compromise could be reached.

I did trawl previous posts on the forum and found a similar post some time ago which Melanie Giles replied to- there seems to be some variation in how this is viewed.

No - you will be allowed to include her housekeeping, clothing and utility costs, but it would be sensible for her to get a part-time job to help pay for her tuition fees and thus try and not rely upon the student loan too much.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
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It is not an exact science and in essence I agree with Melanie. However, if your daughter does have an income from grants, bursary etc I believe creditors would expect a contribution even if it is only a token one. The cost of keeping her would vastly outweigh any contribution but it at least shows an element of fairness.

Provided everything is explained creditors normally accept income and expenditure accounts from IPs but they can ask for an uplift at the meeting if they wish. This can often be down to basic negotiation.

I have recently put forward a case like this where creditors did allow the extra costs for the student child, but it had to be made up at the end of the IVA by additional contributions. This may be worth looking into if your daughter does not have long to run on her course.

My daughter was allowed for when we did our IVA (she was at Uni) and no mention was made at all about her finding a job and contributing when she finished. She does part time at Asda, which pays for her bills and nothing else. No full time jobs available anywhere, especially in her chosen field.

We don't have to make any additional contributions either.

What is worrying too is that in September 2011 my middle daughter is going to university in London ( business)-and the following year my youngest to do nursing at university so this is a longer term issue.Not usre how all this would be factored in.

I don't obviously want to take on something that isn't right for me without looking to the changing circumstances in the next few years after all an IVA is a long-term commitment.

Hi jd,

Make sure you are being represented by an experienced IP who is used to putting forward detailed cases that highlight all of these expected changes, especially adult children living at home.

The last thing you want is to have an IVA accepted but that doesn't reflect the reality of your situation.

Regards,

If the children can demontrate that they are doing all they can to defray the costs of their further education personally, I feel that you have a good chance, but of course nothing is guaranteed.

I have had creditors today turn down private education costs for a child who was suffering from the worst form of abuse and bullying in a school in inner London, where his father is working four jobs per month, and his mother three - to ensure that he gets the best chance possible. Sometimes they never cease to amaze me.