Struggling with my IVA

[Tully1]

Only six months into my IVA and I am already struggling and things are only going to get worse.
Problems with my car meant I needed to make a reduced payment for 1 month. My IVA company have now said that I need to repay this over the next6 months meaning an increase of £72 pounds per month. My orignial payment was worked out on what I could afford - where do I find an extra £72 [:(]

I work in the NHS and due to new government cuts my Job is unsafe as PCTs will go. I have just been offered a new job in a different sector however at reduced hours (30hrs instead of 37.5) this results in a £400 per month pay cut. I have spoken to my IVA company about my predicament and they said that if I take the new job (which is also a promotion so ultimately a good career move as well as stability in the long term) my IVA will have to fail as there wont be enough disposable income available.

I do not own a property and think that bankcruptcy may now be my best option, but really feel like I am letting myself down as I had hoped to pay back creditors as much as possible.

Advice on whether or not I should accept the new job and look at bankcruptcy or stick with my current job and hope that I may still have a job of some sort by 2011 and continue with the IVA would be much appreciated.

Sorry for the ramble I just don't know where else to turn for advice.

[rayb]

Hi Tully,

I am a bit confused as to why they will not allow you to tag the payment on to the end as this is usually what happens. After all where are you supposed to find this £72.00 in the first place??

I would be inclined to take the job and to be honest your IP should be working with you not against you as it is nobody's interest for your IVA to fail. You come submit a fresh Income and Expenditure form and see where you go from there. Have you actually spoken to your IP or just the Office Staff?

Bankruptcy has to be your choice and I applaud you for trying to make your creditors back but if you have no assets it may be your best bet. You would need to let the IVAS fail by missing 3 payments and I believe the court fee is £600.00.

[Broke of London]

Hi Tully, ask to speak direct to your IP. Did the person you spoke to discuss proposing a variation to the creditors? If accepted, your payments would be reduced in line with your revised income and expenditure form. It is irresponsible of them to suggest the IVA will fail without doing a thorough assessment. With regards the payment break, ask for this amount to be deferred to the end...as you say, where will you get the money from.

If the job is a good career move it will lead to financial security and a more fulfilling life for you long term; in your position I would certainly explore BR if the IVA wasn't viable before turning down the job offer.

[MelanieGiles]

You should be allowed to miss up to three payments without your IVA being affected, so a repayment of one missed payment should only be effected if you can afford it.

[Tully1]

Thank you for your replies.

I have only ever spoken to office staff throughout the whole process of my IVA so I have now requested a telephone conversation with the IP.

I am finding the stress of all this is adversly affecting my health now. I know the debt is my fault however i'm finding it difficult to come to terms with the increased monthly payment and the prospect of not being able to accept a new position which ultimately would lead to better financial security.

I will let you all know how my discussions progress with the IP.

Thanks again, I don't know where I'd be without this forum (I am usually a silent daily visitor)

[kallis3]

You can find your IP via this link and email them directly.

http://www.insolvency.gov.uk/fip/