www.iva.co.uk

Hello,I'm in the middle of an IVA.
I have just recieved the 3rd year report to creditors. I am finding it increasingly difficult to pay the agreed £500 to creditors. My wife is now starting to have financial problems.
I don't usually work over time as I know this will affect payments. Indeed this last Christmas I got a bonus of £600 for getting contracts for my company which in turn is really keeping me in a job. I submitted this to my IP and he calculated that I must contribute £142 extra to the creditors.
My wife and I live on a narrowboat. Cheap living some might say. Not anymore. Recently just before the cold snap our deisel heater packed up. We bought a new stove for £547 +£45 for a stove pipe. That's the £600 gone.
My IP never attended "charm school" and his company Varden Nuttal lack impartiality. They give the impression of being on the side of the banks all the time.
In the 3rd year report Mr Nuttal stated that I had overpaid by £277. Will he refund this overpayment£ I fear not. There will be some financial formula conjured up to pay this to the creditors pot.
I was advised that an IVA was my salvation. Even with all the allowances the cost of living is increasing all the time. I have not got £142 niether has my wife who may be going down the IVA road as well.
So now I need advice on what to do to alliviate the worry of this. Bancruptcy, the last resort. Our narrowboat is our home. Could we lose this? I have a car. Nothing else.

I would appreciate some advice where to go from here.

Regards

John Garner

Well your IP is directly responsible to the creditors to ensure your IVA runs as smoothly as possible, and importantly returns them as much money as possible, but he has a duty of care to treat you fairly.

Personally, I would see if you could get your monthly payments reduced to a more affordable level by providing your IP with full details of all of your expenditure. If your wife benefitted from the monies you borrowed, she is expected to make a contribution back to them bu this has to be affordable.

If you go bankrupt now - you are facing another three years worth of payments - and the IVA presumably only has two years to run, so I would try and stick it out if you can.

Also to add to Melanie's comments - If you do go Bankrupt then your credit history will be impaired for 6 years again from the start

Hello, of course you are probably both right.
In answer to Melanie. My wife did not benifit from any borrowed monies, she only found out after we got hitched [B)]. However, we do split the cost of living allowance submitted to creditors.
I will review our expences and submit to IP.
The overpayment of £277. Presumably this also goes to creditors as a bonus?

Then she should only contribute towards your historic debts if she wants to. Not sure how you could have overpaid your IVA - seems odd, but if this is the case this money should be off-set against any monies they claim are due from you.