www.iva.co.uk

I am a little concerned about the future .. at present in an IVA and doing absolutely fine on £150 pcm. But worried as there is a very good chance our income will dramatically drop next year as my daughters DLA is up for review and with the new government I doubt she will get it (even though her syndrome she was born with it and will die with it)hence I will not get carers. Also my daughter will be finished fulltime education, so no tax credits, FA etc. So our monthly income could drop by £900 approx.
We are 18 months into the IVA. I really dont know what will happen. My parents could offer a lump sum if this happens but I know it wouldnt be alot maybe only £4000 which is nowhere near enough to cover the debt. Would I have to go onto a DMP. Help please

Hi mum of three, I can imagine that you are worrying about a big drop in income, talk to your IP and I'm sure they'll deal with it when the time is right. Maybe a F&F from your Mum would be acceptable? Your IP will be able to give you case specific advice. x

Hi,

Sorry to hear of all your problems - we're in a similar situation in a couple of months as hubby goes onto state pension from benefits so we'll take a hit and at the moment we're trying to sort this with the IP.

I would wait and see what happens next year with the DLA - there is always a good chance that it will continue. Why do you think it will stop?

I presume your daughter will be looking for employment? If she is successful in getting a job then she can help out with board payments.

You can always speak to your IP now to alert them to situation but if they're anything like mine then they'll tell you to contact them nearer the date.

I've no idea whether or not the sum you are talking about would be acceptable. This is also something to speak to your IP about.

Thank you. I just see on the news etc of people with hugh disabilities having their DLA reduced or stopped, my daughters disability isnt a well known one but does stop her doing stuff on her own. I just have no faith I suppose. I have managed to save a little too (give it weekly to my mum) in case of this event so I suppose maybe continue to make the monthly payments out of this. Oh I do like to stress lol x

Hi. Nearer the time you will only need to pay over about £5,500 to make up the full expected payments under the IVA, at the current repayment rate. So, in the circumstances, ; if (IF) the DLA is curtailed, an offer of around £4000 won't seem to far from the mark.

I also have an equity release clause Foggy for about £4000, but "hopefully"? I wont have that equity and just pay for another year .

Does the equity release clause specify £4000, or is that what you calculate is available at today's prices ? Do you have the £5,000 deminimis "let out" ?

It does says if the equity at month 54 is under £5,000 is is de minimis, and does not have to be released and there will be no adjustment to the IVA term.

You may be ok then - mine says the same but we do have rather more equity than that unfortunately!!

As Jan says, you might not have to factor that in then. I doubt house prices are going to romp ahead over the next few years, so, hopefully, you are still looking at only the £5.5k to try to match.

House prices have fallen round her, would be lucky to get £100,000. £90 might be more realistic. Plus to re-mortgage it would have to be in my husbands name alone and he is only on the minimum wage, so doubt he would be able to re-mortgage.

I don't think any of us will be able to remortgage at the moment regardless of equity or income. Nobody will touch us with a barge pole!!