As a family with a young boy, we are being forced unfortunately to move out of our current rent. We've been in the property for two years, it's a small 2 bed.
We currently pay £780.00 a month, which is incredibly cheap for the area , and this was the amount we were paying when our IVA's were calculated a year ago.
Three months ago, our IVA's went up a small amount which we could absorb, but now that we have to move we've recently discovered that the cheapest rents (two bed) are in excess of £900.00. The reason for this is because the local council are now willing to pay at least this to single mums, which has cranked the rents right up.
I've spoken to my IP (Payplan) who have told us that we either absorb the cost out of what's left every month, which would wipe out any extra money we have, in fact this would probably force the IVA to fail, or go to six years plus on our repayments.
This is all very disheartening. I do feel the IP could be a little more flexible.
I'm usually philosophical about his sort of thing, but now suddenly find myself rather insecure about my family's future.
Hi
Ridiculous for Payplan to suggest that you absorb the extra cost when all of your disposible income is paid into the IVA.
I suggest insisting on a variation meeting once you have completed a new income and expenditure form to show your true DI.
An extension of twelve months may be the best bet under the circumstances.
Regards
I suggested to my wife that we complete a new income and expenditure.
We have to move in any case so I think we'll look at properties that are paying at a typical rate for the area, and then take it from there.
Ultimately I want to avoid paying an extra year. We're both in our early 40's and would like to be able to buy our own modest property again within the next five years. It does act as a bit of an anchor to help keep us through the IVA, and I suspect that properties will be very much more affordable by then. Aside from this I'm confident we'll never take unsecured credit ever again, particularly since we've turned economising into a fine art!
I guess dispite our best efforts to show willing with our IP there's only so much we can do.
It seems to be very unfair like you say, youre showing willing but you cant always pick and choose what rent you pay. So, I know you probably wouldnt want to consider it but have you looked at BR? It never hurts to be informed of the ins and outs of the other option when youre being squeezed or cornered. I am not saying that you should take this route but with no assets.... Either way, if youre informed and show payplan youre informed or are even giving it consideration they may change their tack and ease off a little.
Did you speak to your IP or a member of staff? I would prepare a new I & E and as Andy says insist on a variation meeting.
If you are speaking to admin staff and don't get any joy you can find your IP's email address in the find an IP section of the Insolvency Service website and contact them directly.
As you say it does seem unnecessarily inflexible. I'm quite happy to continue paying, and they've been all too happy to increase the amount we pay them since September.
I have considered bankruptcy, but I’m sure this could be resolved if the IP will negotiate a bit more.
I think Andy's advice is correct. We shall move, paying rent reasonable for the area, and submit new income and expenditure, with a view to a variation meeting for our creditors.
I don't think you can do anymore than that John. If you prove to them that you have had to pay the extra rent, and need to lower your payments or go BR, they may possibly be a bit more flexible, after all they'll get nothing if you go bankrupt.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I think many IP firms just try to push that little bit too much,and if you are firm and fair in your discussions with them,especially if you understand the ins and out of bankruptcy(this can be used as a very good levering tool),then a positive outcome can be achieved.
Good luck.
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
Hi
The secret is to speak with the actual IP.You can often receive advice from front end staff that is not always totally correct, a little black and white with no flexibility.
As we all know everyones situation is slightly different and no one rule usually fits all in insolvency.
Regards
Address your concern to John Fairhurst at PayPlan I am sure he will sort out your problem.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
