IVA advice

[Karen.c]

Hi I have posted on here a while ago about my IVA, its coming up to the 1st year in March and I have struggled so hard, I contacted my IP 3 months into this and they made me complete an expenditure form just to tell me it was the same as the original and the creditors have asked for a 2 year variable contract were as I can not get the payments lowered? Over the past 4 months I have not stopped payments completley but sent them what I could afford at the time, it took them 4 months and I just rec'd a phone call friday to tell me my yearly review is due and how will I make up the arrears of £561 which I told them I can not do, they replied the creditors may refuse me because of the arrears is this the case and what can I do next if this happens. I get paid £1050 per month and pay them £449 & £450 rent & housekeeping and £64 travel to work and a few other things I am not left with much at all once all is paid out, do I have any other options, I do not own the house I live in as it is in my husbands name as it was his house before we met etc, I just pay him a contribution of £450 a month sometimes £500 depending on what the food shopping has been for the month, I am slowly sinking and soon to drown please can someone help ;-((

[luluj]

I am sure an expert will answer you in due course. Keep positive....your rent and food....is there anyway your husband can support this if you were to reduce it to £350 a month?? You may have to pay him the agreed figure initially to show it on your bank statement, but after that if he was to give you £100 back in cash would this not help you?
What about selling on ebay or at a car boot sale - great way to sell a few personal things that haven't seen the light of day for a while and have been stored in the cupboard.

Of if things are really as bad as you describe would bankruptcy be a better option for you?

Whatever happens, there is more to life than debt......keep smiling!

LuluJ
5 down, 55 to go!

[keh]

Hi Karen

Don't worry yet
One solution is to ask your ip to extend your iva to 6 years to compensate the lower repayments

Andy will be along soon and give you better advice

[ianmillington]

Hi Karen

The topic was covered quite extensively a few days ago in this thread.

http://www.iva.co.uk/forum/topic.asp?TOPIC_ID=8741

Clearly, if you need to reduce your payments you will have to rework your income and expenditure to show what is realistic. Have you done this and if so what is your proposed revised figure?

Do I read you right? Your monthly contribution into the VA is £449 and your arrears are £561? You appear to be struggling but probably are not yet in default. I would say that those are grounds for putting forward a variation, rather than a reason for the creditors to refuse.

Once you have re-done your income and expenditure find out from your IP who the creditor was that modified your proposal in this way. Then formally ask your IP to speak to the creditors representative outlining the problem and seeking clearance that they won't view the calling of a variation meeting as failure of your VA. Clearly there is no guarantee that they will agree to a variation but so long as the revised figure is realistic and still provides a sensible dividend there's no reason why they shouldn't treat it seriously.

Ian

[Karen.c]

Thanks for all your responses i am going to draft up a letter to my IP asking of all the details ianmillington has provided for me, and hopefully then they may try to help me its like they are not bothered at all that I am struggling and are only interested in me paying back the £561 arrears, this has arisen to me not sending them the full £449 a month in nov, dec & january and i prob willnotbe able to send full payment in feb either can only afford £249 in february. I will request a new expendirure form also and get this completed as soon as possible.

[Karen.c]

Here is my response so far ..........

Dear Miss Cadman,



Thank you for your email which I received yesterday.



A formal response to your query will be issued within the next 5 working days, however I can inform you that in the matter of your annual review (and any subsequent variation meeting) a separate letter will be issued to you in due course and further information will be requested in order to complete the review process.



Please advise me if you have not received your annual review letter within the next 3 weeks and do not hesitate to contact me if you have any further queries in the meantime.



Regards



Sue Hayles | Insolvency Administration Team Leader

Clear Start UK Ltd
2nd Floor, Norfolk House
47 Upper Parliament Street
Nottingham
NG1 2AB
t 0115 993 7710
f 0115 953 5323
http://www.clearstart.org/
Susan.Hayles@clearstart.org

[MelanieGiles]

Seems a bit of a waste of time and trees! Why couldn't they just answer your letter?

[Karen.c]

Hi Melanie

I was thinking that myself all I worry about is them failing my IVA in March when the 1st year review is due, I am completely committed to re-paying my IVA I just want a more realistic monthly payment as i am struggling on £449 per month.

I will keep you updated of any progress as it happens, but have to say I am sick of worrying all the time every single day.

I have just been promoted in work and start my new job Monday 18th February as I needed more money its only £1K per annum more but would they take that off me?

Take Care[:)]

[MelanieGiles]

Karen

There is really no need to worry yourself about this - your IP will sympathetically review your case when the time is right, and you will need to advise him/her of the areas you feel need to be increased in your expenditure. This is quite normal after the first year, when you are far better placed to provide accurate figures having lived through the budgeting for at least a year.

[ianmillington]

Hi Karen

Based upon what you have said you aren't in default and so the Supervisor will not be failing your IVA.

I would say the e-mail you have received is a simple acknowledgement so you can't complain that they are not responding to correspondence. As I see it, the team leader is referring to 2 separate issues:

1. The annual review - matter of routine
2. Response to the points you have raised (presumably about the mods etc) 5 working days so presumably this Friday.

Nothing negative so far I would say.

Ian

[Karen.c]

Hi Ian & Melanie

What worries me is that I am £561 in arrears with my IVA as I reduced the monthly payments to get by over Christmas etc.

The man on the phone said to me the creditors may fail me because of this and how could I pay the payments back I really can not afford to pay the arrears back and was rather hoping they could add it onto the end of my 5 years.

Hopefully the creditors will understand my situation as if they fail it then I would have no other option than Bankrupcy but then surely they would not get any money back from me as I do not own my home its in my husbands name I just pay him rent so to speak, Oh dont know Im just a little confused & worried about it all hopefully it will all work out for me as I said before i am totally comitted to repaying this IVA but sometimes you can only afford what you can afford.

Talking to you guys really helps though and i thank you for that.

I have a letter saved which I sent them with my Expenditure and wages for them to look at if you want to check it over for me it would be greatly appreciated [:)]

[MelanieGiles]

As Ian says - you are in arrears but not default, and I suggest that "the man on the phone" is not actually your IP or even a senior or experienced member of staff with authority to advise you on behalf of the IP.

It is never a great idea to use IVA money to fund Christmas, but this has happened and you have to deal with the consequences of this. I really cannot see your IP failing your arrangement or creditors not agreeing to a variation if you choose to put one forward.

I am sure that either Ian or I would be happy to look over a letter for you, but the key is discussing this with your own IP as they have detailed knowledge of your case which we do not.

This sounds to me like a temporary problem which is easily resolved by either good common sense or variation.