www.iva.co.uk

Hi all,

As I wrote last week, we have our creditors meeting on the 28th Feb at 10:30am and we are so glad to be getting our financial difficulties sorted.

Major shock this morning, followed by disbelief, anger and tears, my husband had a letter to say that he has to choose whether his company stays open for another 12 - 18 mths and they take a 15% paycut OR they could close in 3 months time if nobody agrees.

Our meeting is soon and I will talk to my IP Monday but now worried that if we are taking a 15% paycut that we won't be able to pay what we hope to agree with IP and creditors, and that they may say we no longer can do an iVA due to reduction of surplus income.

We are set to pay 22p p £, and will be paying £345 pm if it goes ahead.

Help !

I'm so sorry to hear this MrsR - you do need to speak to your IP about it.

Can't offer any more advice than that I'm afraid.

Thanks Kallis,

We are both just gutted.

I can imagine you are. You can always do a DMP temporarily whilst you sort things out.

We had one previously which was fine until we found out the company we were using weren't paying our creditors!

I hope when we find out about my husbands job next week that our IP could cancel our proposal and we can resubmit a new I&E, then create a new proposal.

Hi Mrs R, what bad timing for you, just when you are on the final approach. In a way it is better that this happened now rather than in 1months time, although even then I'm sure every effort would be made to assist you.

I would expect that you IP will be able to make the adjustments required but it may well mean a delay as a new proposal may have to be drafted.

If it helps put your mind at ease until Monday then rest assured that many IVA's are approved for much less that the 22p/£ you mentioned.

If an IVA was appropriate before this news it is highly likely to still be appropriate, the creditors will look forward to the expected increase when your husbands wages return to normal next year.

I think you will find that creditors will still accept a lower offer,and hubby wont be the only one being asked to take a paycut.

Just as well you were already starting to sort out your finances!!

Are his firm giving any longer guarantees?

Paul

Thanks Hth and Paul.

No guarantees as his company is £65m in debt and already made 200 job cuts in last 12 months.

All they have said is that middle of next week they count the votes and make a decision.. Even after that though they stated that the paycut is vaild for only 12-18 months if company continues to trade.

Problem is my husband has no Quals and only skills and experience, so finding work could be a pain, but hopefully not.

I am just hoping that they take the cut, it stays open for another 6 years !!

It will also depend upon what the other employees vote.

Hopefully they will vote in favour of the paycut.

That's what I'm hoping Jan !

So sorry to hear this ...... Taking the paycut option will hopefully keep your husband in work.......let's hope his colleagues think the same and vote for it !

Speak to your IP on Monday and alert them to this so your proposal can be adapted as necessary.

Thanks all,
Does anyone know roughly what the minimum surplus is for paying debts of 65k in an iva, as apposed to a dmp??

If we are going from say £345 pm to £180, would that still make us eligible for an iva ?

Hi

There is no real minimum, £180 will be fine if that is a better deal than bankruptcy for your creditors.

Have a chat with your IP and put together a new proposal.

Good luck

Regards

MrsR - speak to your IP on Monday and tell them everything - they are there to help you.

I can only echo to talk with your IP and I hope things work out positively for your husband and his job. x