can i talk directly to creditors as IVA fails ?

[shellmat]

Hi forum
I am need of advice and am talking to my IP via email hoping for response next week. I just wondered if any one had any thoughts that might help as decide our next move. Feeling deperate right now.

We have run into problems again with our IVA and having missed two payments think this could be end of the line.
I really thought the IVA was the way forward and in no way do I think we were mis sold or mis informed. On reflection I think we underestimated how rigid living in the IVA would be.
Before IVA we made all minimum payments and had no defaults and no disposable at the end of the month but we had credit cards for emergencies and covering expenses in my job.
The guide line expenditure has never been workable and out of 12 months we have made 6 payments of full amount to IVA.
Last week eldest son moved home wants to go back to college, my car died £620 to repair and I need it for work, new tyre for puncture on OHs car £109 paid and yesterday boiler died!!
So informed IP of all of this and told them once again can't pay IVA.

I am inclined to let IVA fail and talk directly to our creditors again - would that be an option and when can I legally contact them my self.
Do I have to wait until the IVA officially fails or can I go back to managing the situation myself immediately ?
If the IVA fails what levels of fees would I be expecting the IVA company to charge?
I would still rather be in the IVA and do not want to become BR. I am guessing that as our household income is high and we have little equity in house all creditors would rather we kept trying to pay back debt. In 5 years our secured loan will be finished and then would be able to pay back everyone else more easily.

[Shining]

Hi, I'm sorry you're having problems with your IVA, I hope your IP gets back to you soon and you can find a way to move forward, talk to your IP honestly and be upfront how you feel about it failing and other debt solutions can be explored, with an IVA it's the protection from creditors that I like. If you have little or no equity it might be worth exploring bankruptcy as an option?

I'm sure there will be a way forward and if your IVA fails it's up to you if you want to contact your creditors to find a way forward with them directly. All the best. x

[Adam Davies]

Hi
It sounds as if your IVA may be too high. Speak with your IP and see if you can agree reduced payments via a variation meeting.
Only speak with your creditors once the IVA fails, then you could agree a debt management plan and increase this once your secured loan has finished
Regards

[shellmat]

Hi Andy
I Andy and thanks. I know IVA is high and main problem is that our actual outgoings are not reflected in the I&E; meaning we can just about make it when there are no emergencies or my expenses have been low. We should pay £528 and IVA company did reduce to £343 from last month if we increased child maintenance payments from £65 to £144 this was not through a variation meeting the overall difference makes no real difference. We have always paid at least £200 per month. I opted out of my pension to be able to make the payments so far - not brilliant but I want the IVA to survive. Can I ask for a variation meeting or is that something your IP has to suggest.? Is that different to the review meeting. The £343 and new child maintenance arrangements are being put to the creditors at the annual review meeting.
Thanks

[MelanieGiles]

Are you a client of mine shellmat?

[shellmat]

Hi Melanie
No; I don't believe we'd be in this position if I was. I have read many times on the forum about how you have managed to negotiate realistic I&E for your client and get them accepted. The I&E I have put forward have been honest and realistic but not accepted. Stupidly we thought that we would manage by juggling the allowances but life has not fitted in with the IVA schedule! I will keep talking to my IP but can't make payment this month got to get car fixed.
If I'm not forced to go BR hoping that managing payments to creditors myself will give us flexibility to get through each month. We did manage before IVA on minimum payments but then had use of credit to bail us out.
Best wishes Shelley

[Adam Davies]

Hi Shelley
Try to agree an affordable way forward with your IVA but if you can't then it is very unlikely creditors will force bankruptcy.You will more likely be back to square one and a DMP probably a suitable option. I would recommend using a company rather than trying to negotoiate it yourself.
Regards

[MelanieGiles]

Your IP should listen to what you are saying about your expenditure and accepting anything that is reasonable - as should your creditors. I would try and make the IVA work before you look at other options, but at the end of the day you have to have lives and family is far more important than having a few debts.

[shellmat]

Next week I will ask my IP once again to accept the I&E which leaves £200 per month disposable and covers all our expenditure even for most expensive months. We would always be able to pay over any money left at end of month to IVA. To cover car and boiler I will ask for payment break or additional months on end of IVA.
If this is not acceptable then I will investigate DMP.
Thanks for the replies.

[Shining]

All the best hope you get to speak with your IP and the result is positive for you x

[kallis3]

Fingers crossed shellmat! Hope it is accepted. Let us know.