My IVA is currently £709 per month and I have just completed a year. My company is being bought out in the next month and redundancies will be imminent. As i definitely need an income and am on the "at risk" register, I have been looking for additional work. Have received a job offer which is approx £300 per calendar month less than I currently earn, plus will be further to travel, but is stable employment. I have broached the subject with my IVA management (which has just changed from Wilson Phillips, I forget who it is now) and they weren't particularly positive about it saying I would need to pay the £709 for the next 4 years. I was hoping that by being proactive to secure employment (when honestly there's not a lot out there) would be seen favourably. Any advice on how I could move forward with this...
I do keep getting contact by a company called xitdebt offering to help reduce the IVA. Ever heard of them and is it worth calling them>?
Don't touch them under any circumstances - they promised my husband all sorts of things - eg buy out his IVA reduce his payments irespective of what his IP had to say. Keep well away from them - you will be landed in even more difficulty if you get them involved. J
thanks - I am usually very wary of this type of thing (xitdebt) and would rather stick with who I'm with anyway... Any advice on how to approach my current IVA supervisor? Perhaps as part of the annual review which is due anytime now?
Sorry, I can't help you on that as I know nothing of the technicalities - if Melanie (my husband's IP) picks up your post she will be able to advise you as will Kallis and Skippy. One, or all three, will be on later. J
I endorse what Elv5 says about any organisation who contact YOU promissing the earth - they are usually out to take advantage of your situation for their benefit and not yours!!
I'm sorry to hear about your possible redundancy and the attitiude of your IVA provider. The whole point of an IVA is that you pay what you can reasonably afford. If your circumstances change then your IP must put forward a variation proposal to your creditors. It is up to them whether they accept it or not. However, if you are asked to pay more than you can afford, the IVA is bound to fail and that is in nobody's interest.
The other factor here is any redundancy pay. (don't change jobs before knowing that you are definitely to be made redundant and lose out on any redundancy pay!!). Any redundancy pay is normally used to tide you over until you secure employment and any surplus after that normally goes into the IV pot.
It is worrying that your relationship with your Provider is so distant that you don't even know who they are!! You need to get in touch with your IP directly (rather than possible call-centre staff). I'm sure when you do they will be sympathetic to your situation. After all there are some 2.5 million unemployed and you are not by any means the first within an IVA to have this happen.
Good luck and keep posting - I'm sure an expert will be along soon to give a more authoritative response.
Ignore Xitdebt - we have had letters from them before. Don't touch them with a ten foot barge pole.
If you can manage your IVA, then continue with it. If not, then ask away on here and we can advise you.
These companies are just out to make money for themselves and are not bothered about you.
I think you will now have gone to Grant Thornton, who had a good reputation on here. There will be a transitional period, but don't worry about that. If you are having problems, give them a call and I am sure they will assist you.
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
Thanks for that - good advice. The problem (as I saw it) from the IP's point of view was that I haven't actually been made redundant yet, so being proactive (as I see it) to secure employment is actually just a drop in salary. My redundancy pay would be statutory which I believe is 1 week for every full year I've worked there (so 2 weeks pay!)
I had a really good relationship with my original IP (Wilson Phillips) and I received a letter saying it had changed in the past month. I'm at work today and just can't remember their name off the top of my head!
I'm doubting that my parent's VERY kind offer to lend me £11,000 for a full and final offer would be anywhere close to enough for the creditors to accept.
You are paying a high monthy amount which suggests either your agreement is for a high dividend or you owed an awful lot or both!! On the face of it £11,000 doesn't seem anywhere near 4 years at £709 per month, but your IP is the one to advise on this.
If you are made redundant, you can request a payment break initially. If you then cannot find employment it might be worth exploring a full and final as your creditors will get more than they would if you went 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 agree, and frankly, I'd rather my parents keep their money. I do actually feel a responsibility to pay back as much as possible, but am worried about the potentially lower income or not having an income at all!! I did owe £68,882 and am paying back a total of £41,718.00 on the current arrangement. There is a clause in my agreement that states the IVA can reduce up to 15% without a creditors meeting being called.
You will definately now be a client of Grant Thornton.
Moving from a higher paid job to a lesser paid job has its advantages, but is going to affect your IVA payments drastically - possibly even making the IVA on an ongoing basis unworkable. You have to decide which route gives you the most security - and this has to be on the employment front especially in the current climate.
Have you any assets which would be lost under bankruptcy proceedings?
Yes, I co-own a home although in the current climate that is negative equity. Also, I cannot take the job I wish to take if I am bankrupt. Perhaps looking for a higher paid role is the solution, though no idea how long that will take... Could the IVA not be extended for a period of time to make up the shortfall? (I know the answer is to speak to my IP, just looking for opinions)...
I would arrange to discuss this with your IP - perhpas go for a face to face meeting, as this is an important decision moving forward. Is there any way you could get a letter from your employer to confirm that your job may be at risk - in which case the variation could be called earlier whilst the job offer is on the table.
Hi all - quick update. I spoke to Laura at Grant Thornton who was really reassuring and helpful. She gave me a couple of options - one is that I can reduce by 15% and extend the IVA, the other is that I could ask for a reduced payment due to circumstances. The new salary is a much more structured one than where I am currently (no grades to move up so only an average of 1% cost of living over the past 3 years) so I am likely to be matching my current salary again in 18 months and exceed in 3 years. Obviously I have explained that I would naturally increase the payment where the salary has increased, and when i hopefully surpass my initial payment, I am quite happy to pay more than 50% across so the initial amount is met. She seemed to think this would be looked on quite favourably. So just the decision to make now about the job! Though honestly I think it better to be in employment than potentially not! I will keep you all updated on how it goes...
At least you now have some options to mull over and decide what is best. I agree with the advice you have been given, and there is no harm in pursuing the new job opportunity to see if you get offered the job. Secure employment at a lower salary is perhaps more favourable for all concerned in the long run.
