struggling even to manage the IVA payments

[may07]

Thank you Kerri and Skippy so much for all your advice and info.Skippy you went to a lot of trouble to post those IPA figures for me but Im afraid I havnt a clue what they mean? Sorry after you took all that trouble! From what you have bothg told me it seems there is no standard approach and one person might have a different experience from another person, its really hard to know what to do for the best! My debts are related to trying to raise my kids without sufficient money. We dont have holidays or any luxuries. I am exploring the possibility that I may be entitled to a back dated benfit for one of my kids, which could yield a lump sum payment of arrears if Im successful. It hardly seems worth the bother as it appears anything like that I gain will be taken from me. My home is in desperate need of decoration, Im living on floor boards in my sitting room. If I got a back payment Id like to be able to make my home more liveable and comfortable for my kids and my elderly mum, who is virtually immobile and a prisoner in her home. She wants to come live with me for what is left of her life but I couldnt expect her to live in these conditions. I dont expect they would allow me to do that.
Thank you both !!

May

[Skippy]

Sorry May, I should have explained! When you petition for BR you submit your income and expenditure form (make sure you put down absolutely everything including holidays, prescriptions, even newspaper and magazine subscriptions) which is considered by the OR. They may disallow or reduce some things. The OR then works out any IPA payments using the sliding scale below.

For example, if you have less than £100 disposable income you will not get an IPA. If you have £100, you will pay 50% into the IPA. If you have £310 disposable income you will pay 60%. If you have £600 or more you will pay 70%.

To be honest a lot does depend on your OR, but they do have rules they have to follow in regard to IPA's, assets etc.

I hope this helps

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[may07]

Thanks for explaining skippy that makes sense now!If I am sucessful with this benefit claim and get a back payment do you have any idea if I would be allowed to use it to bring my home to a reasonable standard, nothing luxurious just basics i.e paint, repairs, a carpet for the sitting room? Im guessing not but not sure. May

[Kitney]

Hi
I read these comments about bankruptcy with interest and am very confused. My parnter and I have been in an IVA for a year now. A the time of making the decision whether to go br or have an IVA we were advised that if it went to court the judge would probably turn us down because we could afford approx £1000.00 per month (60p in the pound) to spend on an IVA and we were advised that in br creditors only get a couple of pence in the pound.

At the moment we are doing okay, but I am at risk of redundancy or dropping a substantial wage and would like to consider having kids in the next 4 yrs or so, and therefore read these comments with interest.

I know the IVA obviously stays on ur credit file for 6 yrs from beginning to end - where as I understand br stays on ur credit file for the three yrs of the term then 6 further years. What I can't understand reading thru all the comments over the last few months is that people have been in IVAs and then have had no option because of various circumstances to go bankrupt which starts the 9 yr cycle - crap if ur half way thru the IVA.

I understand creditors want as much money as possible, but I just assumed that if my salary was to for example half, then they would still be getting 30p in the pound - obviously far more than in br so why are so many people in IVAs struggling like this and feel they have no option but to go into br???

Thanks very confused Kitney

[may07]

Hi Kitney

What Ive learned from this site is it would appear that IVA Supervisor's operate in different ways and at the time that you face your situation and seek that first consultation ( at a time of great stress and vulnerability because its all the unknown) to a great extent you are at the mercy of who you initally contact and who you engage to help you. Additonally, in the BR route different OR's seem to require different things. IVA supervisors and ORs seem to have a sliding scale of "leniency" So basically there appears to be no common standard. Lastly, it is impossible to predict the situation of one's life for the next 5 years, anything can happen beneficially or adversely. What started out as a good way to deal with the situation can change with differing circumstances. I have found that the more information I get the more confused I become because of the lack of parity in the professional's approches and because life is unpredictable!

Hope things continue to work well for you!
May

[Skippy]

Hi Kitney, BR also remains on your credit file for 6 years from the date the BR order is made. Unless you are given a BRO/BRU you are only bankrupt for a year, rather than 3.

I can't comment on whether or not your creditors would accept a reduction to 30p in the pound. I asked if I could have a variation meeting (I knew after a couple of months that I couldn't manage) but the conditions containes in my IVA were 1. No variations possible within the first 24 months of the agreement and 2. Payments must never fall below the agreed dividend of 27p in the pound.

I thought about trying to manage for the first 24 months and then requesting a variation meeting, but if they wouldn't let me reduce the payment anyway I decided that there was no point if they wouldn't let me reduce the payments anyway.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/