Hi all,
Just looking for a bit of advice. We are 3 years in on our 6 year IVA. We thought all was going ok-ish but with the cost of living just going up&up to say it's been tough would be an understatement I'm sure you all know the feeling. Aprox 2 months ago we filled out our monthly income&expediture form and compared to the year before there was an increases on things like car-fuel,food and other bills.Where we could, we provided recipts to back this up.Fortunately some overtime came up at work which I did,if I had not done the overtime we wouldn't of been able to carry on with the IVA and would have had to consider going Bankrupt. Anyway to cut a long story short our IP has not recognised the increases and put different amounts in our expenditure form and sent no letter of explanation why?And because I have worked extra hours has asked for me to pay £1600 within 14 days. I spoke to them on the phone today but because the person who did my report isn't available till Monday they was unable to help.
Is this type of thing a common problem?
Are IVA's failing because of the increase in the cost of living?
I can't pay the £1600 I wish I could, having that amount of money burning a hole in my pocket would be great.
Any feedback would be most welcome especially if Melanie Giles is about.
Many Thanks in advance.
Hello and welcome. Demanding a lump sum in respect of unpaid overtime contributions isn't a common occurrence, as those in IVA's agree at the outset to pay in a share of overtime payments as and when they occur. You have, for one reason or another, not done this and now the IP wants the money in a lump. I am sure you will be able to negotiate a repayment program to catch up the losses -- to expect it in a lump is a tad unrealistic, whatever the rights or wrongs.
Are IVA's failing because of the increase in the cost of living ? I don't think so, as most IP's recognise this ( after all they pay bills too!) and allowances are made at review for the general upward shift in expenses. However, there are a few companies who simply refuse to recognise the difficulties this causes, and, I suspect, they have a higher failure rate than the sympathetic firms.
If your IP has mis-represented your outgoings I would, first, take this up with them and see if the ongoing payments can be looked at, alongside addressing the underpayment.
Who are you with ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I will look into this for you, but I find it hard to believe that a member of my team would deliberately alter your expenditure allowances without any sort of prior discussions with yourself. We are obliged to abide by current maximum creditor guidelines, except where you have provide due justification for any increases in excess of those figures.
You also should have paid the additional earnings into the IVA when they were earned - this is clearly explained within the body of the IVA proposal, and I and I and my fellow IP always make sure this is discussed with clients and understood personally at the time the proposals are signed. We also send you a formularised Excel spreadsheet, so you can self monitor any uplift payments throughout the year.
As with all matters relating to my own clients, I prefer to deal with these confidentially and away from the forum. And right now I am unable to identify you from your forum name. If you wish to contact me directly tomorrow, I am in the office from 10.30 onwards.
I have been out of the office for most of the day, but have your details and I will call you on Monday when Laura is back in the office. Don't worry - we will sort out any queries you have speedily.
