I'm struggling here

[charlottie]

I've completed 1 whole year and coming up to the end of the 2nd in October things are getting tough but everytime I try and explain this I find my supervisors team not very sympathetic. They won't look at varying my contributions and have just told me to keep supermarket & petrol receipts for the next 12 months and they'll look at reviewing in year 3 - does that sound right, is that the way other companies work because I'm struggling here?

[iva_squirrel]

Hello Charlottie and welcome to the forum.

Congratulations for coming this far. I am sorry to hear that you are struggling with your payments. Could you tell us if your circumstances have changed at all?

If you find you cannot maintain your payments, your IP could ask creditors to agree to a reduced payment or a payment holiday. I am hoping that your IVA proposals was drafted to include the power to put revised proposals to creditors.

Kind regards,


Julia Simavi

Shortlisted with special commendation for Debt Counsellor of the Year by Credit Today Awards 2007

View my profile:
http://www.supersonicsquirrel.net/julia ... rofile.asp

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[hara]

Why are they asking you to keep petrol and super market receipts?
Is that where your exp has increased?

You are allowed a certain amount of house hold spending for each person per month at the out set itself with out having to produce receipts?

So is there any reason why they are asking receipts now? ask for a reasoning behind it.

seems strange.

[accgroup]

Hi Charlottie

Usually an IP would review your income and expenditure on an annual basis and ask for pay slips and bank statements to verify the figures you provide. (You may be subject to more frequent reviews depending on the terms of your IVA).

Presumably your IP has asked you to fill in a form or provide details of your income and expenditure? This should then make it clear to him why you are struggling - has there been a change in circumstances since your IVA was approved?

If you really are struggling then your IP should be able to help, maybe even propose a variation, but creditors will vote on whether to accept this so your IP will only put a variation forward if it is viable and he believes it will be accepted by your creditors. Creditors will not usually consider a variation unless there has been a change in circumstances which has made it impossible for you to keep to the exisiting terms of the IVA.

Hope this helps

Jane Finch
Insolvency Practitioner

AccumaGroup - A large insolvency practitioner service based in Manchester.
www.accumagroup.com

[charlottie]

Thank you for all your advise.
I'm struggling because like most people I was so anxious to get my IVA through I just accepted what Debt Free Direct told me was likely to be accepted and then at the creditors meeting, even though we only have £400 a month to live on, that's for fuel, food etc they said they wouldn't agree it unless we paid an extra £40 per month we pay 59p/£. We agreed because we didn't know what else to do. At the first review they wouldn't lower it but agreed to keep it the same. I know there is a review up soon so I rang about asking them to lower it. Our mortgage has gone up by £60 in last 12 months and our joint pay has also risen by £60 so that cancels that out, this is when they said without evidence it couldn't be done and so to keep receipts for food and fuel and they'll consider it next time.£400 a month is not enough to live on, it's £100 per week on a 4 week month but less on a 5 week. I know we only have ourselves to blame but it's like is there no end to the misery. And obviously no-one knows so we put on this facade that everything's ok to friends and family. I've lost count of the mystery illnesses that prevent us from going to family occasions etc. We just need someone to give us a break for goodness sake.

Sorry that's turned into a ramble but I do feel better for letting it out.

[BlueShoes]

Hello Charlottie!
Feel free to have a ramble and a moan, that is what the forum is for, so hopefully we can all support each other at such a difficult time.
I hope your IP can sort out your problem; the last thing the creditors will want to see is the IVA fail. I'm no expert but it sounds like you need this problem resolved a.s.a.p.
Blue

[aguise]

Hi Charlottie
You have a moan if you feel like it. Try to keep your receipts and see if they will alter things in October 100 pounds is not a lot for you to live on, I would think they should see that without the needs for receipts, but if you can prove the extra costs maybe they can do something.
Try not to be down x

Ang

[MelanieGiles]

Hi Charlottie

In my opinion you do not need to demonstrate that a change of circumstances has led to you struggling, you are struggling and that is a matter of fact because you accepted contributions which were too high and appear to have been enforced upon you by your IP firm.

My advice is to sit down and list out your total income and expenditure to arrive at a figure that you feel is comfortable and sustainable for the next three years. Then instruct your IP to put forward a variation in terms to your creditors. The alternative to this is bankruptcy, where creditors will be unlikely to get any form of return, and this should be made clear to them in the figures you present.

As I see that you are a property owner, do you have equity in the property and has this been pledged to creditors via a final year revaluation provision? In these circumstances, bankruptcy proceedings are probably not a good idea, so work with your IP to find a solution that is affordable for you and that they are happy to convey to your creditors.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Angelus]

Hi Charlottie,
I am also with DFD. We are a family of four and have about £60 a week to live off. When the car broke down (my wife needs it for her job) we were told a contingency fund had been calculated into our outgoings of £50 a month. Pah!!

I know how you feel, I used to look forward to life, now I live in a state of perpetual dispair that I wouldn't wish on my worst enemy. This is our first twelve months in the IVA and I'm dreading Christmas.

When you first start with these people they make out they are the knights in shining armour and they will save you from the Creditors, truth is that they are the Creditors best buddies.

My heart does go out to you because I am in virtually the same situation and I've done things I'm not proud of to feed my wife and kids. I hope that times will change soon and that We all can live what passes for an ordinary life.

Good Luck my Friend

[MelanieGiles]

This is not what IVAs are supposed to be about guys - and is a lesson to anyone thinking of proposing one. As these posters can recount, it is not an easy option, and it is important to choose an insolvency practitioner who will work hard to find an affordable solution for you. By accepting unfairly high repayments, you are just kidding yourself and leading to five years of misery, at a time when bankruptcy proceedings seem to be getting more and more relaxed!

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Adam Davies]

Hi
I just want to add to what Melanie has already said.
For those contemplating an IVA make sure that you are left with enough to have a reasonable life on.Five years is an eternity when you are on a tight and unrealistic budget.Do not let the IVA provider dictate how much you should live on.The difference between 45p and 50p dividend is a nominal amount to your creditors and should not affect their decision to accept or not but that extra 5p could make a huge difference to your standard of living for five years.
For those already in an IVa and are struggling early on then write out a fresh and realistic proposal and insist that your IP puts it forward as a variation because the probability is that you will not get through the next three to four years without it.
Is it creditors forcing the unrealistic budgets or IPs ??
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

[charlottie]

Thank you all so much for your support I wish I'd known about it before I did my IVA. I would still have gone ahead but probably not with DFD.
I am going to sit down and take your advice, write everything down and see what happens - surely bankrupty in our case helps no-one.
Yes we do have a 4th year equity. We pay £940 per month into the IVA and in year 4 we have been asked to try and get £18,500,although when we were going through the procedure we were told, don't worry if you can't just say you tried, but in reality there is a rock solid clause in the agreement - so beware- we probably do have that kind of equity now and so that shouldn't be a problem. I am going to propose about £100 reduction as this would make all the difference to us.
Once again, thank you for your kind advice.

Lotte

Lotte

[ray_a]

Not wanting to put a spanner in the variation process as suggested by Melanie but would Charlotte have to pay for a variation process to be made?

I was charged £600.00 for the attempt to vary statutory interest and that could be a lot to find at this stage!

Regards

Ray

[MelanieGiles]

Generally the costs of varying are borne out of the IVA estate, but the IP might ask you to pay if the variation is to your advantage, rather than out of necessity. As the statutory interest issue is to your advantage, Ray, then I feel it is fair for you to pay the charges and not your creditors.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[ray_a]

LOL! Melanie I think you like to see me suffer!

I take your point seriously and was just worried that there could be a problem with a variation of payments!

Seriously, I do take your point about the advantage though but I should point out that I do actually need the money to reorganise my business and personal life and I am offering a third to show some goodwill!