I feel my situation is no better than before

[joanna.s]

Hi, I have been in an IVA for 7 months now and am finding it extremly difficult to manage my finances with the IVA payments as well as mortgage and secured loan. This leaves me with very little money each month for schooling, food, transport to work, and am being charged at the bank for unpaid items, which is only adding to my financial troubles.When my IVA was set up they worked out my income based on wages with alot of overtime on them, when I queried this I was told it did not matter as I had to pay a minimum of 25p in the £1. At my meeting in April my creditors was not happy with this and I due to the stress and worry agreed an increase of £70.00 pcm which works out at 31p in the £1.
I am in a very desperate state and although letters are not coming through the door I feel my situation is no better than it was before.
(My debt was around £80,000 for which my payment is £550) I do have a mortgage but with the outstanding balance and my secured loan I have no equity in it to settle my IVA.
Can you advise me what my options are. Any advise would be grately received.



J Sevens

[bagpuss]

I didnt go through a 5 year IVA, mine was a F/F. So i cant sit here and say i 100% know what your going through. But i have read on here of many others who are and they all say the same thing...it is really hard, you do have to be very strick with your budget and just feel positive that in 5 years (or in your case 4 years and 5 months) it will all be over.

[BlueShoes]

Hi Joanna
If things are so very difficult, it might be worth telling your IP so you can decide on your next steps. I am not an expert, but with no equity in your house, would BR not be an option for you? I know you are 7 months in, but the remaining 4 years 5 months are going to be impossible if you are paying more than you can afford. I'm sure Melanie would be able to advise you.
Blue

[MelanieGiles]

Hi Joanna

You are one of the unfortunate people who felt that they should agree to anything just to get the IVA through, and now realise that your budget was unrealistic. The fact that you were aided to this by an insolvency practitioner is a shame, but I feel that you should never have been put into this false situation.

I suggest that bankruptcy might be a better and kinder option for you than struggling for the next five years. Do you have any assets which would be effected such as a property?

I note that you have young children. Now is the time to put them before your debts, as it is not fair to see them suffer for the next five years, as you struggle to make unfairly high IVA payments. As you probably know the payments under bankruptcy proceedings would be much lower.

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

[Adam Davies]

Hi
It,s a shame that your IP tweaked your figures to make your IVA fit the general 25p minimum criterea and even worse that your creditors have asked for even more.Both are a recipe for a failed IVA.As others have stated have a good think about bankruptcy because another four and a half years of paying an unaffordable amount will be unbearable for you.
As you have no equity you could keep the house by getting a third party to purchase the interest from the OR for a nominal £1 and as long as you can maintain the secured payments your house will be safe.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp