If your IVA is going to fail unless the full and final is accepted is there really much point in paying anything else until the new meeting has been held?
If you have a surplus now, it will be required to get ready for the birth as you only have 6 months to save and buy the necessary baby items. Personally, I would advise my IP that I was ceasing the payments pending the outcome of the meeting and if creditors reject the offer I will use any money saved to petition.
If the variation is going out with the annual report in July it makes no sense to me to make any more payments as effectively you have no other options if creditors reject.
Would you advise that I do something similar, as I am also waiting for a meeting for F&F and would no longer be able to afford the payments should it not be accepted, like you say the IVA is going to fail if the offer is rejected anyway.
Hi, I've completed a review already which the company has got back but they say they are not going to look at it until July. When I completed the review they told me to complete the review sheet ignoring the pregnancy issue but to just include a note to say it was happening and then when the baby was born they could then do another review. I'm now thinking that doing this was not such a good idea? After working out what I will be paying once baby comes there's just no chance I can manage. If I stop paying now, will that not just make the situation worse? Michael, what do you mean when you say 'petition'?
Thank you
Stu.
If your IVA is going to fail should the variation be rejected, I see no point in throwing any more money into the pot. This money would pay for your bankruptcy and the fact that payments had been missed would mean the IP could terminate the arrangement quite easily. If you cannot afford to make the payments there is no point and inform your IP.
Yorkcityfc.
Waiting until the baby is born puts off the inevitable and also prevents you from making any plans for the arrival. You will need a pram, cot, clothes, blankets, toys etc,etc, etc and while family and friends will always buy things it is never enough. You should advise your IP that you need your surplus to buy these items and ask for the full and settlement to be proposed now. It can easily be explained what you are doing with the surplus and creditors are normally understanding. The alternative would be to reduce the full and final offer in December by the equivalent amount of the payments made until then and use your father's money to buy the baby items. However, I see no real point in doing this as you have nothing to lose in bankruptcy and creditors would lose everything.
Petition means to apply for your own bankruptcy which it seems to be the best option for you from the information you have provided. Therefore it is in the interest of creditors to accept a settlement now and let you get on with your life. I certainly think it is a reasonable offer as is Stu's and the quicker these variations are called the better for all concerned.
Last edited by Michael Peoples on Tue Jun 22, 2010 11:26 am, edited 1 time in total.
Michael, I have done a revised income / outgoings statement on a excel spreadsheet for what will happen when the baby comes. I dont suppose you (or anyone else who has experience of these things) could have a quick look and see if its reasonable? Stu - I'm taking your advice and currently composing a letter to get everything in motion. Cheers guys.
If you want to email me the spreadsheet I would be more than happy to look at it. My email address is in the experts section and I will get back to you as quickly as I can.
Just an update to this really. I sent the letter of to the person who deals with my IVA advising her that I wished them to offer a f&f settlement to my creditors. I've not heard a thing back from them so far. How long do these things usually take? I'm hoping no news means good news.
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
It should not take long to review an income and expenditure and propose a variation. It may be worth chasing up your IP and find out what is happening.
latest update. I rang them this afternoon. They said they had not had time to look at the proposal fully but will try to ring me by wednesday. The person i spoke to said that they thought it might have a reasonable chance of succeeding. One thing they said got me a bit worried though.. I've not paid this months installment and they said that creditors like to see the iva payments through till the settlement has been accepted. Should i therefore try and pay this months installment to give the proposal a better chance of succeeding or am I ok to keep withholding payments (this is bearing in mind I'm keeping the money back to pay for the bankruptcy if it all goes wrong). Has anyone else been advised this?
In the event that your offer isn't accepted then you can stop paying then and save up the money.
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
Given that you cannot afford to maintain the payments I see no point in continuing to make them. Creditors are being offered a full and final settlement or bankruptcy.
Tell this to your IP and as you say keep the money to pay for the bankruptcy costs in the unlikely event that creditors turn down the settlement offer.
Thought I'd give you an update about my situation as you were all really helpful (especially Michael Peoples who is a legend).
My IVA people had the creditors meeting yesterday and the upshot is that they approved the final settlement of £5000 so I'm massively pleased. Thank you all again for your help!
