My husband and I have applied twice in the past for an IVA, all our creditors voted in favour except Northern Rock. We then agreed to a management payplan and are paying our creditors £900.00 per month. We just cannot manage on it. My question is when the OR contacts us, do we draw up the living expenses (budget) with the maoney to payplan? plus other expenses?
or without the money to payplan? after we have done the expenses the money left over at the end of the month what % does the OR take to pay our creditors.
Hi toon army If you go BR then all your debts are cleared - so you won't be paying any of your unsecured creditors after BR.
The OR looks at an IPA/IPO when you have more than £100 disposable income each month but they don't take every penny - its a percentage. I think there is a list of the amounts in Skippy's blog.
It is worth remembering that the allowable expenditure in BR is far more reasonable and relistic in BR than it is in an IVA or DMP. I would recommend when completing the SOA you use realistic figures. if you tell the OR you can eat for £10 a month, that's exactly what they'll expect you to do!
That is bad look that Northern Rock did not vote in favour. Unusually, we were the other way round - Northern Rock voted in favour and most of the others were pushing us for more! There seems to be no logic sometimes
drawing up a budget
Posted - 02 June 2008 : 21:31:34
