I have just had the paperwork through for my upcoming 1st yearly review with a budget sheet to complete etc.
Obviously, with just about everything affecting the cost of living having dramatically increased over the last 12 months my available income for creditors has actually reduced.
I currently pay £1344 pm from my joint income of £3143 pm including my pension. This is affordable but to allow it to continue I am having to find money from my basic living allowance like food, fuel etc. Having worked out my budget sheet for the review I actually find that when ll is totalled up I am £95 short of what I need to fufil my obligation, although as I have already stated I would look to recoup that by cutting food and fuel expenditure.
What concerns me is should I send this budget sheet back showing a £95 deficit? Would that make the Supervisor concerned that I was unable to continue with the IVA or something like that?
The other alternative would be to take the £95 off my fuel allowance to show the budget still balanced?
Im really not sure what is for the best on this so any advice would be appreciated
You should send the sheet back with correct information on it, and if the Supervisor is worth his/her onions they will contact you to see how you are managing to afford the budget. They may have discretion to reduce your payments for the $95, but you would need to make this up at the end of the IVA by making a few extra payments.
It could be the difference between having a life or living an existence!
Many Thanks for the advice, I had queried with the Supervisor earlier in the year when my electricty /gas bills increased dramatically if there was any scope for reducing my payments and was told that they could consider this but it may mean extending the agreement so taking into account your comments above I would presume that is feasible.
The other alternative is to ask your Supervisor following your review (with correct information as to your costs) whether he/she is prepared to request a variation on your behalf to creditors. All current variations my firm have currently proposed have all been accepted - some with an extension others without - it depends on your creditor mix and how good your supervisor puts your case forward after establishing from you the correct facts. Good luck.
Last edited by David Mond on Wed Oct 29, 2008 12:58 am, edited 1 time in total.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Thanks for the further advice, I have spent the past few hours working out my figures and it now works out that my wife and I are £133 short of what we need every month to pay our IVA payment. So I am planning to send the budget sheet back along with a covering letter to our supervisor requesting consideration of a reduction in our monthly payment. I hope that is the correct way to address it?
What concerns me is that supervisor asks for a variation and the creditors decline it...what happens then? Does that mean the the IVA has failed or is it left with us to try and manage the current payments?
Sorry to keep asking all these quetions but as you can imagine it is a big worry.
If creditors do not accept the variation, which I would say is pretty unlikely given the amount that you are paying, then you could try and struggle on to make the contractual repayments, or look to either bankruptcy proceedings or a DMP as alternative options.
I feel sure that you will not need to do this, and wish you the best of luck with your discussions with your IP.
