Changes in circumstances

[DerbySaint]

Hi all,

I am three and a half years into my IVA (paying £264 a month) so I am just wondering if anyone could help me out on a couple of queries.

First off, I am moving into my partner's place within the next month and she has a son so I will be contacting my IP (at Varden Nuttall) regarding my new I&E. As a couple bringing up a 7 year old, I just wanted to know if anyone knows if I can include her son in the I&E regarding anything like food / clothing / school fees etc .

Secondly, (as scary as this sounds to me!!) we are toying with the idea of having a baby, without going into medical details this may be the only chance we have so, again, does anyone have any experience with how the IVA companies view this because obviously I/we would struggle (doesn't everyone!) to pay £264 a month but having come so far, I wouldn't want to fail the IVA or increase the length of it.

Any help, would be much appreciated!

Thanks for your time.

[MelanieGiles]

It is unlikely that your IP will allow you any contributino towards someone else's child, at the expense of your own creditors - but if your partner will be losing out on benefit income then this ought to be taken into consideration.

If you were to have a child with your partner, then this would of course need to be taken into consideration with your own income and expenditure, as you would be responsible for financially supporting that child. Many of my clients have had children during their IVAs - and we have had to vary a few cases to seek reduced contributions as a result of the increased costs - but anything is possible.

The basic message here is to not put your life on hold just because of the IVA - the IVA should work around the life you want to lead, and personally I wish you the very best of luck with all of your plans.

[Tina Shortland]

Hi Derbysaint - it will depend on how VN want to calculate your I&E. If all the income is accounted for including any child benefit and maintenance your partner may recevie then all costs for her son should be included. If they are just looking at your income and the changes to your own costs i.e if you now have a lower cost of living because you are sharing house bills etc then the sons costs will not come into it. Make sure you take into account of any changes in travel costs, car insurance changes etc as you are moving address.

With regards to trying for a baby you must do what you feel is right for you both if time is limited. There will be quite an impact on your I&E at the time - with extra costs but also you will recevie extra child benefit and possibly some tax credits. Discuss this with VN to get a realistic projected budget to see if an IVA would still be affordable or if an extension is needed. I understand you don't want your IVA to fail but you both need to agree on what your priority is for your future - resolving a failed IVA with altenative measures is easier than losing a chance to have ababy if you both want one. Its a massive decision so I hope VN give you all the support you need inloking at your options. And of course we're all on here too

[DerbySaint]

Thank you very much for your help Melanie and Tina, I shall bare your comments in mind and speak to my better half. Thanks again

[Gareth]

Hi Derbysaint. Both Melanie and Tina are right. IVA's are supposed to be flexible enough to cope with the changes that life throws at you.

Have you contacted Varden Nuttall yet? If so I hope we have been able to assist you.

If not feel free to email me on gareth.buckley@vardennuttall.co.uk and I will get a member of our team to give you a call.

[DerbySaint]

Hi again,

Thank you for your comments with the above... Late last week my partner and I received some amazing news that she has fallen pregnant (scarily quickly from my first message above!! Haha) and are obviously we are both over the moon!!!

This will be my first experience of pregnancy and my girlfriend hasn't wasted any time scaring the life out of me with the baby expenses (and lack of sleep that is on the way! Haha) - I am so excited but extremely concerned about the money side that comes along with a baby.

I contacted my IVA company (Varden Nuttall) earlier today and advised them of the news and asked what the normal procedure is. The gentlemen I spoke pretty much said 'you need to continue making your monthly payments until your partner goes on Maternity leave and the baby is born'. He mentioned that there is a chance that I could possibly take a payment holiday during my girlfriend's maternity period (but she may not return to work as she already has a child) and a months payment before the baby due to arrive is not going to add much help to buying the required things.

Obviously the plan is to save, save, save in readiness for February next year but when you're paying most of your money into the IVA each month then it would be pretty hard to do so. I asked about reducing my monthly payment or VN calling a variation meeting but he said that in his experience the Creditors don't normally budge.

Neither me nor my partner have much money and bluntly, I really don't want to cancel my IVA but taking your comments above into consideration I simply have to put my partner, our newborn and her son first.

Has anyone come across this kind of response from their IVA company before and what options do I have?

Any help would be really much appreciated - really sorry for the long message but so many thoughts are bouncing around my little brain at the moment!

Thanks very much,

Paul.

[Broke of London]

My experience with VN mirrors yours. They are not sympathetic to life choices that increase your cost of living. Don't let their reluctance to help put you off and keep on fighting your corner. Ask for your requests and questions to be sent to the IP direct as I have found my IP flexible than the staff. Most importantly, congratulations on the pregnancy and in double quick time too!!! Hoe exciting for you all xx

[DerbySaint]

Thank you very much for replying Broke, much appreciated - and thank you for the congratulations

I was so disappointed with their response, I really wouldn't want to give up on the IVA with only 18 months to go so I hope I can speak to someone flexible like you said. I shall try contacting Gareth (above my last post) and see if he can help.

Thanks again. x

[dipsy]

Congratulations to you both!
I have to say that VN don't seem to be sympathetic at all! From what I have read on the forum, most companies tend to bend over backwards to help in these situations as they, like you, do not want your IVA to fail and if you can't afford your payments then of course it will.
Talk to your IP directly and explain your situation fully and they may well be able to help and at least be more sympathetic. Good luck!

[Broke of London]

I was told early on that an iva is to pay your debts not to improve your standard of living and their responses always bear that out.

[dipsy]

Of course. That is the one thing that we all have to remember when we are struggling... but if your circumstances change then surely a variation is appropriate?

[Broke of London]

You'd hope so Dipsy! I was basically told I wouldn't be allowed to move in with my boyfriend as they wouldn't support a variation sanctioning an increase in living expenses. So I would have had to go bankrupt to make the move! Not much of a choice is it?

[MelanieGiles]

What brilliant news to hear, and I do think that your IP firm could be a tad more helpful in assisting you to plan for the big arrival.

Creditors are actually very sympathetic to well presented variation proposals, but you do need to do your homework and present a proper plan of action. Firstly I would cost up all of the items you think you need for the baby - your partner will have a pretty good idea of this as she already has a little one - and then see how you can manager to save for them and what assistance may be needed from creditors. Your IP ought to be able to agree a 15% reduction in payments now, assuming your IVA follows the IVA protocol, but they will expect to see a reasoned and justified argument from you so that they can in turn justify their actions to creditors.

And please don't forget it is the right of everyone who is in an IVA to present variation proposals - it is not within the IPs ambit to refuse to present these, so long as they are reasoned and credible. It saddens me to see someone like Broke of London penalised, when her suggestion has not even been put to creditors. Whilst I am sure she has a strong relationship with her partner, things like this could completely wreck a relationship, and at the end of the day relationships must be prioritised as they are priceless.

[Broke of London]

DS - Mel's suggestion is a good one to present to your IP as hopefully the sums and a little common sense should help them realise you can't support a family on the same expenses allowed for a single man!

Mel - my other half is great and very supportive. We will move in together later this year but the onus is on him to support me financially for a while and that in itself isn't great for a relationship. Its not as if I'm home raising his children! Every month he asks how much longer is it going to last!!! I've promised him an exotic holiday at the end of it LOL

[Gareth]

Hi Derbysaint,

Thank you for your email. I replied earlier today so hopefully you will have got that by now and we can work towards helping you.

Hi Broke of London, I'm sorry that you have not had a variation put forward and feel that we have not assisted you. I have mentioned a few times to you on this forum that if you contact me I will be happy to look into your situation and assist in any way I can. I havent had any emails as yet.

My email address is gareth.buckley@vardennuttall.co.uk and as I mentioned above please do contact me if you feel that you need any assistance regarding your IVA.

Kind regards,

Gareth