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After reading this site for many months, i have done a head with an IVA. I am just filling in my I and E.

Does any body make these figures bigger than what they are if you can get away with it, just to give you a bit of extra money free everymonth ?

Sharon

The Insolvency Practitioner will verify your budget by asking you for copies of bills, payslips, mortgage or rent statements, bank statements etc.

They won't verify things like expenditure on food because it's not very easy to do that, but it's pretty obvious that everyone needs around the same amount of food to live on, if you put down too high a figure for this creditors will simply say it exceeds their guidelines and tell you to buy Aldi, Lidl or Tesco Value Range instead of Marks & Spencer !

So the upshot is it's not easy to give yourself a bit of extra leeway if the IP has done their job properly.

Philip Beck

Licensed Insolvency Practitioner and IVA specialist

Hello.I'm not an expert, but I did my expenses over the phone with CS.They were very good and very realistic.Clearly I could verify everything with my wage slips, statements etc.They allowed a contingency amount to be put away for other eventualities. I didn't liketo mention things like my 5 cats, son't guitar lessons...so this I guess is what the contingency money is for or I do a very very basic shop when guitar lesson money is due? Best to be honest I think. I wouls be too scared to evade the truth as a default might lead to the iva failing? Cat

I agree with you 100% cat1 - I think it is vital to be totally honest and above board when setting up an IVA. It is obviously "doing the right thing" and it means you can go through the five years with a totally clear conscience.

And I think that once anyone starts telling a "little white lie" it is all too often the start of a slippery slope that can end up who knows where. On a wider point - I would have thought that to help make sure that IVAs survive and continue to help thousands more people in years to come - like they have helped us - it is vital that everyone on all sides approaches them in good faith.

I think once people get used to their I+E there is usually a bit of leeway for saving a bit here and there either from the "contingency" or elsewhere to help with the odd "luxury".

It is all down to trust between your IP and yourself. We were very honest with our I&E and in the early days the budget was tight but we were a borderline case between bankruptcy and IVA and it had to be tight to be accepted and I do think it's important to be upfront from the start.

As Optimist says once you get used to your budget and living within your budget then you are able to save a little for luxury's etc. We always put our loose change from 1ps to 20ps in a pot and add them up at Christmas (we had about £60 this year!) and if you were able to put a £1 away every day at the end of year you would have £365! As you go through the iVA you'll be amazed at how resourceful you become and inventive.

Good luck with your application

The reality is that most creditors rely upon the CCCS guidelines when voting, which I now reluctantly use in my proposals as you are just setting yourself up for rejection or increased payments if you don't. Although I feel that the allowances are very frugal in certain areas, most people seem to manage and the way creditors representatives are voting at the moment there is little point in not applying them.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

louisa -

I now save all my small coins too - like you say it is surprising how quickly they add up. I thought I might feel a bit awkward when it came to asking the Bank or Post Office to change them up but I have recently noticed a machine at one of our local supermarkets that does it for you! Basically you just pile the coins into the machine - it makes a lot of noise - and sorts them out. It then gives you either notes or vouchers (not sure which yet as I've only glanced at other people using it so far) in exchange. I am sure it keeps some money as "commission" but it certainly looks convenient.

you get a voucher which you take you take to the till to exchange for cash. You get charged a small commision which i belive goes to charity, but its worth it rather than sorting out your coins than having to put them in to bags, plus banks wont accept any more than 12 bags at a time

no matter how bad money gets, theirs stll alot more important things in life

Yes I change mine at sainsburys all the time. You do pay a small commission, you can either have cash or take the money off your shopping. Its much easier than counting it all out. They are called coinstar.

Ang

Please visit my blog at http://aguise.blogs.iva.co.uk/

Dave saves his £1 coins in a Grolsch bottle. He's really disciplined about it, and I remember one month when he didn't have a lot of work he paid the mortgage with them!

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

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