Is it correct my payments jumping 300 pounds ?

[david.by]

Hi,

Ok here goes,hope you can help as I have just got to my 12 month review on my IVA and recieved some pretty bad news.

I started my IVA after falling into masses of debt because of low income (£780 per month) when I took on an apprenticeship, to better my career.

At the moment I have re-payments of £188, and absolutely no assets.

Anyway, in the meantime, I have become qualified and have found new employment and obviously my wages have gone up as a result! Now, I live in a house as a lodger, and the person I live with has asked that I find somewhere else to live next year so his girlfriend can move in etc etc.

I was about to start saving for this when my IVA reviwers contacted me and said my new repayments would be £480!!! This would definateley not allow me to save my first months rent and a deposit on a new home, and even if I did that, I would ever be able to make ends meet with utilities, food etc. My monthly income is £1200.

Is It correct that my payments should jump £300 per month? If so, my IVA will fail. Could someone also explain what this will result in for me?

[emma_t]

Hi David

I am in no way qualified to answer your question so I would wait for an expert to advise you correctly.

Just wanted to welcome you to the forum[:)]
Emma

[Adders]

In your review did you budget for the rent you would have to pay when moving out?

[MelanieGiles]

If your disposable income has increased by £300, then you can expect your payments to increase accordingly, but if you will incur higher rent in the future then this should also be taken into account. You really need to discuss your situation with your own IP to be sure that the payments are currently set at the right level.

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

[Dave_B]

Thanks for the replies guys I appriciate it. I think this situation has occured because I didn't put my expected outgoings, as I don't know what they'll be. However, I do know they will be a lot more than I pay know!