concern about situation with my sister and my car

[alyson.h]

Thank you very much Melanie I'm going to request again that they allow me to make reduced payments.

[alyson.h]

Thank you very much Melanie I'm going to request again that they allow me to make reduced payments.

On 31st October I contacted IDS to advise that I was currently obtaining a second opinion from a registered insolvency practitioner with over 20 years experience and it is felt that their fees were a bit excessive.

I also advised I was now unsure whether or not continuing with their IVA was the right solution regarding affordability. I asked that they arranged for a variation meeting to agree a reduction of my payments. I have today had a response from them which I have cut and pasted below.

REPLY FROM IDS – 5 NOV 2007
Hi Alyson,

As I have previously advised you I have reviewed the income and expenditure that you have submitted and this shows that you are in a position to afford your monthly contributions, therefore I am unable to submit a variation.

As you are not maintaining your agreed monthly contribution your arrears are increasing on your account. I trust you have now received your notice of breach and you have 28 days from the date on the letter to make arrangements to clear your arrears or the IVA could fail.

I have taken advice from the Insolvency Practitioner who agrees with outcome of this email.

Kind Regards,

Emma

[Sadsack]

I fear my blood is going to boil!!!!!

From reading other threads on this forum, it is my understanding that an IP has got to do all that is reasonable and even if they do not want to call for a variation meeting, they are obligated to do so. Whether the creditors accept or decline the variation is not the issue. IVA's were put in place to assist and any IP worth their salt will discuss the proposal with the debtor and advise, not just write a letter saying we are not going to call for a variation.

If you are able, could you list all your income and expenditure and perhaps one of the IP's who regularly post on here would be better able to assist you.

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

[MelanieGiles]

This is a slightly different case, as the IP appears to believe that Alyson can afford her payments - so therefore there is a dispute between them, and it would be difficult to put the variation forward under such circumstances.

Alyson - could you possibly post details of your income and expenditure that you feel is affordable, compared to that set by the IP. so that we can see where both side is coming from. And bear in mind that it is almost impossible for I, or any of the other experts, to give you definitive advice across the forum as we do not have detailed knowledge of your individual case.

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

[Sadsack]

I agree Melanie, perhaps I was cooking too much to post clearly!!!!

What I meant was surely if the Debtor is saying they are struggling, the IP would automatically ask for an up to date I & E. From what I can gather here, a review was carried out (not clear when) and payments increased by £201. Could she not have proposed to extend the term of the IVA, thereby reducing the payments as it seems alyson is in an IVA for 40 months? I thought IVA's ran for 60 months unless a F & F was offered in the interim?

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

[MelanieGiles]

It really depends upon affordability Sue, and without seeing both sets of figures it is difficult to comment properly.

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

[alyson.h]

Good morning all

Monthly wage: £1812.50

Car insurance - £26.88
Phone insurance - £5.99
Food - Betweeen £100 and £150
Phone - Between £40 and £50 (varies)
Clothing (mail order) - Between £50 and £80
Car warranty - £30
Petrol - £100 (as I drive part way to work)
Travelcard - £105
ISA - £30
Magazine subscription - £2
Rent - £390

Balances owed to creditors when set up IVA in December 2005

Natwest - £2,025
Citifinancial - £3,410 (ish)
Capital one - £260
Halifax - £100
Welcome Finance - £2,117
Abbey - £2,006
Sister - £7,000
Barclays - £1,859.14
Coincidentally they called me yesterday to see if I was able to clear the balance. I explained my current situation with the IVA and that I'm currently obtaining advice from this website. I said I'm hoping to have made a decision regarding repayments to them and the rest of my creditors by next week. They were ok with this and said they will put a note on the system.

Would it be wise for me to contact my creditors direct and explain the problems with my IVA and re-propose a repayment plan?

Thanks everyone

[aguise]

Hi alyson is this your allowed expenditure , does your rent include gas and electric and what about council tax, dentist, prescriptions things like that are they included as well.

Ang

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

[MelanieGiles]

Alyson

Are you sure that you have included all figures - this shows a surplus of over £900! What about car maintenance and miscellaneous expenditure - medical expenses, and your housekeeping budget is very low.

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

[alyson.h]

I'm so sorry for missing off necessary info.

The rent does include gas,council tax,electric and water rates.

Regarding car maintenance and misc expenditure I would therefore say that amounts to £200 (£100 each) and £6.85 for prescriptions which I get every 3 - 4 months

[MelanieGiles]

So even with a really tight housekeeping budget, you can only afford payments of approximately £750 per month? What do you feel is an affordavle payment?

I think that £100 for car and miscellaneous is quite high, but your food budget is far too low, so the one ought to cancel out the other.

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

[alyson.h]

I have always managed somehow to socialise on an extremely limited budget (if at all). Ideally I would like to pay IDS around £500 or is that being too unrealistic? Do you think it is a bad idea for me to contact my creditors now to pre-warn them of the problems I have been having and propose a new re-payment agreement with them to commence when I get paid in 3 weeks time?

[MelanieGiles]

Alyson

The key here is to get your IP to understand why you can only afford a reduced payment - as to be honest you will probably get nowhere by contacting the creditors directly - indeed most of the accounts have probably now been sold on to third parties.

If you really feel that you can only afford £500, you really need to get your IP to understand why and I suggest that a face to face meeting is now essential to be able to understand where each of you is coming from. Whilst this will probably mean taking a day off work, I feel that it is a really important thing for you to do.

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