IVA or Bankruptcy

[Kitney]

I agree with Andy about promotion often leading to extra upaid hrs of work and increased stress - and where is the satisfaction in that?!?!?

I had the chance of applying for a promotion recently and it has just come up again - but it would be a 40 plus hour week, plus an extra 10 hrs travelling each week, plus an absolute minimum of 10 hrs 'homework' each week, plus the stress of the revision and exams - yeah it would be 2 bands higher than what I am on now - but I just feel that the stress both before and once qualified would just not be worth while.

Don't get me wrong, I want to pay off as much of the debt as possible BUT after starting my second year of my IVA and having several friends die in the last 6 months, it has made me think that I need my life to be as stress-free as possible (well as much as can be whilst been in debt).

The only way my colleagues cope who have previously been successful in this promotion is to book their 2-3 holidays abroad each year - something we obviously wouldn't be able to do so I just can't see the incentive and can't see how I could cope in a very very stressful job with no holiday to look forward to and no money to 'treat' myself. Luckily I may still be in a position to apply in 4 years time but I am trying not to think about it at the moment - which is hard as all my friends are talking about their new job and their new wage and I must say I am a little envious!
Kitney

[catullus]

Andy,
In many ways I agree with you but I doubt very much that such a standard clause would ever be agreed to by creditors without them wanting their pound of flesh. The quid pro quo would be limits on allowable expenses at reviews and even more draconian expense allowances.
I completely understand the need for the person in an IVA to have an incentive but the creditors needs also have to be served. If a person decides that they do not want to accept a promotion for all the reasons explained in other posts on this thread that is their choice. At least they have that choice.
Creditors actually have to sacrifice a lot when bound to an IVA and I really don't think that it should be one way traffic.

[aguise]

Hi all
It seems unfair that one should keep half of their payrise and another keeps none unless offset against expenditure rise. Surely if the creditors agree to a certain percentage back of the debt then 50% more of anything should be better than possibly putting someone already struggling with a budget under the pressure and possibly defaulting. I keep my 50% of anything over the amount agreed at the start of the iva and pay religously each month any extra due from overtime etc. My creditors have had a lot extra back and I am happy and managing, surely that is better.

Ang

[lily]

I would like to make an observation here, I cannot speak from experience because I am not in an IVA but had one drawn up sometime last year. I understand the fact that we owe the money and should be made to repay as much as possible and anyone with assets to protect will do this. I agree with Andy that there should be an incentive for a debtor going for promotion, given the extra workload and stress etc. I do not quite understand the one way traffic thing as it seems to me that the creditors do have a choice, firstly by taking the risk of lending the money in the first place and secondly to reject the IVA if they are not happy to accept the dividend promised. There is much talk of irresponsible lending and from my own experience I had loans pushed onto me by constant phone calls my bank made, I didnt have to sign and hold my hands up but I was under the impression that the financial institution concerened knew what they were doing and I agreed, after the third phone call to consolidate which more than doubled my level of debt.

People in IVA's are trying to do whats best in terms of a way out of the mess but they do have to live and it must put tremendous pressure of families with growing children. I take my hat off to every one of you, I cant help thinking that a child of eight at the start is almost a world away from the age 13 he she will be when its finished. Five years is a long time and it really doesnt seem to me to be a two way thing at all, once accepted, with the greatest respect.

lily