Reducing Monthly IVA Payment

[r_c]

Hi

I have a question for one of the very helpful experts on this site if you don’t mind regarding my monthly IVA payment. I have received an email from my IVA Company (general circular I assume) regarding cost of living, gas & electric bill increases etc… and whether I would be able to reduce my monthly contribution at no cost to me! I am thinking about contacting them but just wondered whether one of the experts would be able to tell me at a glance whether or not I would be wasting my time.

Background as follows;

My first IVA payment was in July 2006 with a monthly payment of £362 (total payable over 60 months = £21,720), I was then contacted 9 months later informing me that my car finance should have been included in my IVA not separate (I didn’t know and they had all of the paperwork so should have picked up on this I think?). I was told that my payment would increase to £597 for the remaining 51 months of the IVA (total payable over 60 months now = £33,705). The difference being an additional £234.95 (car finance payment). I had already paid 17 months (Dec 05 – April 07) of my car finance and didn’t feel was right – wouldn’t I end up paying more back?

My take home pay per month is £1049 and my partner’s is £1428 giving a total monthly income of £2488. I class our essential monthly outgoings as follows:

Rent
Gas
Electric
TV Licence
Home Insurance
Water
Food
Petrol/Diesel (we both need cars for work)
Car Insurance x 2
Mobile Phones (used really when required as we don’t have a land line)
Child Maintenance

This totals approx £1900 and does not include the little luxuries which my partner pays for (e.g. sky tv, odd meal/night out, clothes, dental, contingency etc…)[:)].

My question is: what proportion of the bills should I be paying?

I have worked out that if I pay 40% and my partner pays 60%, I have approx £17 left each month (this doesn’t include any contingency plans etc..). I have not included child maintenance for me as this is my partner’s child.

I would be really very interested to know whether, in your opinion, I am paying too much in IVA contributions or whether the above payment of £597 is correct? We do not own our home so have no equity clause.

Many, many thanks once again for your help and I look forward to hearing from you.

r_c

[louisa.s]

I note that you haven't received a reply so hopefully replying to this will pop it back to the top for one of the experts to answer.

From my understanding of the IVA process I was under the impression that if you are keepingn the car that you are finance on then it does not get included in your monthly payments but if the finance finishes during your IVA then you need to pay what you were paying for your car into the IVA.

The other thing is the letter you received was it actually from your IVA company or another company (ie IVA Council)?

The other thing I am assuming is that all the debt is in your name and your partners income was used to make the IVA viable?

Lou

[r_c]

Hi Lou

Thank you very much for reply.

I think it has something to do with whether your agreement with the Finance Company is secured or not secured. I'm not really sure to be honest just go with what I'm told by my IVA Company.

It was an email that I received from my IVA Company. My partner had one of those letters from the IVA Council earlier this month which we binned - his name hasn't been on the IVA Register since December!

My partner also had an IVA (early completion last year) but his income still has to be on my IVA which is the same of anyone living with someone isn't it? I wanted to do the IVA myself as basically it was all of my debt which I had before we met but because we had a current account with £100 overdraft & personal loan in joint names we were told that he had to have one as well. I personally didn't want him to but he agreed to do it to help me get out of debt.

Thanks again for your reply[:)]

r_c

[MelanieGiles]

Sorry from the experts - for a late reply! I have been in my Plymouth office all day.

You ought to be paying 42% of the shared expenditure, so you will need to work out if your IVA payment is set at the correct level.

I don't understand what happened with the car - can you give more details please.

[r_c]

Hi Melanie

Thank you very much for your reply, I knew you would reply when you had chance[:)]

I will double check the monthly expenditure amounts to make sure that I am paying 42% but think I will contact my IVA Company anyway regarding whether my payment is right thank you. I just don't seem to have any money left at the end of the month for even things such as dental, clothes, extra fuel if needed and have to really on my partner for these things, which I have to say he is being really great about!

I will check what paperwork I received regarding car payment issue and get back to you on Monday if that's ok. I remember having various conversations with them about it but I'm sure that they & car finance company sent me letters as well.

r_c