A few questions

[rockstarloz]

I have just had my IVA approved and already feeling a bit worried. I have a lodger at the mo, temporary. She is paying me every month and will move out when she has saved enough for her own place. This could be a few months down the line. The Ip said not to worry at the moment because its temporary and the money she is paying includes all bills.I am thinking now about getting a lodger permanently when she goes. Although the IVA is great, its going to be a battle to make the payments and a lodger might alleviate things. My friend now pays 300 a month including bills. The lady I spoke to today said that if I decide this to include it at the annual review. I am just worried I am in breech of contract if I wait until then, and also will they take most of the rent my lodger pays? If so it would seem pointless having a lodger I suppose. I just can't cope with the thought of scrimping for every single little penny for 5 years and struggling. I thought a lodger may help?

[Lisa2009]

The money a lodger would be paying you would be classed as extra income BUT do take into account the extra food and utilities when working out a revised I&E.
If its something you decide to do then speak to your IP as soon as it happens and then if again they advise you to wait till your annual review, all well and good.

[MelanieGiles]

If you are in receipt of income which has not been declared on your IVA proposal, then creditors have already been misled - albeit with the agreement of your IP. I accept that if this was just a very temporary arrangement, that perhaps there was no sense in including this as income, but I would have expected you to pay higher contributions until your friend moved out.

Having a lodger would not be pointless - indeed it would enable you to pay a much better return to your creditors in the long run - and I would certainly not wait until the anniversary before you declare this income.

[rockstarloz]

Thanks for the advice, the company are aware of the situation. I just feel that I am going to struggle making payments without a little extra from a lodger. I accept that if I chose to do this as a permanent thing I must pay higher monthly payments to my creditors, this is not in question but just wonder whether it will help me out on monthly basis. Even just if I keep 50 pounds of it. The IVA, really does leave things tight and I am worried about increasing bills etc.

[MelanieGiles]

I think that it is perfectly reasonable that if you are prepared to give up your privacy to help creditors get paid more money that you be allowed to keep some of it as an incentive. £50 sounds more than reasonable in my book, so why not suggest this to your IP and see what they say.

[rockstarloz]

Okay, I'll ring tomorrow. I assume they will leave me with some of it to cover her bills and food?

[MelanieGiles]

Yes - the lodger income firstly needs to cover the additional bills.

[rockstarloz]

Hi Melanie, spoke to my IP today and we came up with an increase in the monthly payments of £100, which I think is fair. Thanks for the advice, I feel better knowing I'm paying a bit more but also have a little left to make each month a bit easier.

[MelanieGiles]

That's great - now both sides are happy and creditors are getting a bit more money as well. The perfect IVA solution!

[Lisa2009]

Thats great news and like Mel said, both parties will gain so well done xx

[chardonnay]

Hi Rockstarloz,
Your post has been great to read as I will soon be in a simlar position - I would have to get a lodger to keep my house until prices stop falling when I will sell.
Glad you're all sorted,
Hugs,
Chardonnay

[Viki.W]

That's good news rockstarloz, good for you sorting it out so quickly. X

[kallis3]

Good news Rockstarloz, now you can relax![:)]