IVA Failing

[Clare73]

Hi all,

Have just received a letter from DFD to say that 'due to the level of arrears on our account, our IVA is no longer viable.'

I have therefore contacted them and was unhappy with their unhelpful attitude. I submitted a letter in December 2007 to say that we could increase our payments to 546.00 per month (see post above)

I asked them if they had applied for a variation meeting with the creditors and they said no, because our proposed contribution would mean that we would be living without basic essential items. I asked them why they considered a childminder to be an essential living item and was told it was because I needed one for when I am at work. But I haven't got a job so why would I need a childminder at the moment? Also, our petrol budget is not so high at the moment because I no longer need to travel to university every day. We still have a monthly fuel budget so we are not going without. Why could they not accept the extra money we were paying on fuel towards our IVA contribution? I don't understand why the above have been considered essential living expenditure when we don't need them. Their answer was to write a letter to them. BUT I HAVE ALREADY DONE THIS IN DECEMBER! So they told me to write another one! ARRRGGGHHH!!!

So, I asked what our options were. Being as helpful as they are, they said it was up to me! They consider the IVA with them as failing so I could either take out another one, look at a DMP, declare ourselves bankrupt or contact our creditors.


I really don't know where to go from here so I would appreciate some suggestions from anyone. We have the money to pay our creditors, but DFD don't seem to want to take it - I don't understand.

Thank you!

[Adam Davies]

Hi
Write to your IP and ask them what they need from you to keep the IVA live,enclose a fresh income and expenditure form and ensure that the letter is sent to your actual IP
Regards

[Clare73]

Thank you Andy.

When I spoke to them this afternoon, they said that we needed to clear the arrears which were just over three thousand in January. I don't know where we are supposed to find the money for that, hence the reason the contributions had to go down in the first place. Feel thoroughly fed up tonight but thanks for replying.

Regards

[ianmillington]

Hi Clare

Was there any specific reason for the arrears accruing?

Ian

[Clare73]

Hello Ian,

The arrears accrued because my university course ended so I was no longer receiving a bursary. Therefore, payments had to reduce from 750.00 to 207.00. We looked at our I & E and proposed to increase to 546.00.

Clare

[rayb]

Why cant they just increase the term of the IVA, put another year on to clear these. Makes no sense to fail you

[scoobby42]

I also have just recieved a letter from the IVA Council, Bournemouth telling me they have noted a pattern of inconsistencies that may indicate my iva has been miss-sold. Does anyone have any infomation on these people?

[rayb]

Hi Scoobby42

This has been commented on numerous times. Only you know if you are unhappy with your provider, I would ignore these letters as I had one and I filed it under B for Bin!!!

[ianmillington]

I agree with Ray. Whilst (applying first class honours in hindsight) it would have made sense if, before you left Uni, there had been discussions about the way forward but, of course, hindsight is a wonderful thing.

Have I got this right: They've quite willingly put together an IVA for you as a student but won't cut you any slack for the post-grad period whilst you were looking for a job?

Ian

[ianmillington]

To scooby

As Ray says, this has been the subject of numerous threads. They want you to pay them (or more correctly an associate) £1000. See also the government website www.insolvency.gov.uk where the DTI distance themselves from the IVAC.

Shred the letter is my advice, if you are happy with your IVA. If you are concerned there are far more balanced, and far cheaper, sources of help available.

Ian

[Clare73]

Hi Ian,

Yes, that's right even though they knew when we put the IVA together that my course would be finishing! I don't know where to go from here so any suggestions would be much appreciated.

Clare

[ianmillington]

Perhaps if you instructed another IP whose brief was help you negotiate a variation or, if not possible, to look at a second IVA for you that might wake them up and at worst, give you a fall-back position.

A massive assumption here but were you a student nurse or something, given the bursary you received?

Ian

[Clare73]

You assumed correct! Yes, I was a student nurse but have been unable to find a job - no surprise there, given the current state of the NHS! I think I might give them a call now about extending the IVA and see what reply I get. Fingers crossed.

Clare

[ianmillington]

Let us know how you get on, Clare.

[Clare73]

Well, I told them that I had sought some advice and would it possible to extend the term of the IVA to cover the arrears. I was told that if I put that proposal in writing to our supervisor, they would look at it, but I need to do it a.s.a.p! (Letter already written and on its' way to the post office!

You would think that given the amount of money we are paying them and as they are acting as our IP, they would be the ones coming up with the suggestions on how to resolve it. Or am I wrong?

Clare