Another 1st review, new circumstances

[Cmw328i]

Hi all,

Im doing my first review and EVERYTHING has changed since entering the IVA.

I now live with my partner and I pay the rent, he pays the other bills, my IVA people wont accept that we don't pay 50/50 on everything. We do this because I have the higher income and we decided that this is the fairest way to split as we do not have a joint bank account. My partner does NOT want to be involved in this. He would be happy to sign a statement saying that this is our arrangement but I dont think the IVA people would go for this

Additionally, my tax code as changed and i have been forced into a new position at work (or face redundancy). I went from a salary with bonus to a flat out hourly wage that pays basically the same rate... however, before, i did not have to figure the bonus in my allowances as i was allowed to make up to 10% over my base salary, now i'm making the same money but my base pay is higher so i need to figure out how to keep that as best i can. As a condition of my employment, i must take an HNC in electronics which the company is paying for, but any supplies for the course will be up to me to cover.

Also, i've been given a car by my mother, I was on public transport but it does not run at the time i need to take this course therefore the switch to car was essential to keep my job. SO, im not entirely sure what to include in planned expenses, but surely I should budget for unexpected breakdowns or something?

This is what i've listed so far:

Rent * 250
TV Licence 6
Council Tax 58
Water 25
Electricity 31
Petrol * 105
Car Insurance* 57
Road Tax* 11
Parking* 5
MOT 5
School supplies 10
Clothing 30
Smoker 40
Opticians 14
Prescription 16
Housekeeping * 250 (diabetic requiring special dietary needs)
Mobile Phone * 54
Internet 32
Sundries/Emergencies 12
Newspapers/Magazines 5
Hairdressing 11
Sports/Hobbies/Entertainment 17
Meals at Work 36

Lastly, I had a viola that i was attempting to sell for £5k which did not find a buyer so i've decided not to sell. It was a condition in my original agreement that if I sold it, i would use the money to move closer to work. I've actually been able to do that without selling it, but the person I spoke to today insisted that I wasn't allowed to withdraw it from sale. However, when i signed up for it, i said if they had issues with me selling it that I would simply hold on to it, which is what i've decided to do. Im not sure what they intend to do about this because should they re-possess it and try to auction it off, they'd likely not get more than £750 for it which is what a shop would buy it for at auction and then sell it at £5k. Instruments are a complicated matter that the IVA people clearly dont know enough about to judge how it would work. From my point of view, this issue is irrelevant as it the funds wouldn't have been taken by the creditors anyway.

anyway, i need some good help here to make sure that I get the most affordable payment. I've not been able to make ends meet very well as it has been over the past year and raising my payment by £100 a month is really well beyond absorbable for me.

Thanks in advance!

[MelanieGiles]

Hi there and welcome to the forum

Firstly, with regard to your current income and expenditure, it is generally accepted that when couples co-habit that they share the expenditure relating to the household in proportions similar to their earnings - so if you earn more you pay more. This does involve your partner declaring their earnings, and if this would affect your ability to maintain your contractual payments then the IP might suggest that he pays more, so that your IVA is not affected by your changed circumstances.

If the viola was an asset in the arrangement, then it will have to be realised regardless of the intent behind the original reason for sale. I wish I had some spare money, as I used to play viola in an orchestra some years ago, and do miss the mellow sound - although my hubby would probably kill me! If I were you I would do the decent thing, and continue to market it to get the best price, in the best interests of creditors.

[Cmw328i]

thanks for the reply. So, basically i just need to ensure that the instrument continues to be advertised for the duration of the IVA, I think I can do that, there's just not any interest in it at the moment so its unlikely to go anyway, especially when talking about £5k. I did say up front that it may never sell at all during the course of this IVA.

Re: income, I think I will state his income which is about 2/3 of mine and explain that when considering the bills, they come to about 2/3 of the cost of rent. He is happy to write a statement about it, but doesnt want his pay stubs getting sent off for this as he doesnt feel he should be involved. payment.

[MelanieGiles]

If I were acting for you I would want to see evidence of his income, so don't be surprised if this is asked for. It is perfectly reasonable for an IP to want to verify the household incomes.

Regarding the viola, have you tried advertising it in specialist music journals, or asked your local music shop to take it on a sale or return basis - also e-bay might be another place to try.

[Cmw328i]

I had it at a shop in london for over a year and there were no bites. Was at one of the most prestigious shops in the UK, people come from europe to shop there, but they said the market right now is for student instruments or much more expensive instruments... nobody was looking in this price range. I'm putting it back up on a website, we'll see what happens.

I'll try to convince him to let me send pay stubs should they be needed.

[MelanieGiles]

I do understand your dilemma. I am currently dealing with a CVA for a music shop, and it is simply difficult to find someone even to be able to put sensible values on the stockholding, let alone recommend how it could be sold. Do your best, because at the end of the day no-one can blame you for trying, and you cannot make someone buy it if there is little interest.

[Cmw328i]

true, and if it doesnt sell, i'll probably get back to playing it again. I stopped because of a serious hand injury, but its healed up now after a few years. I could always start playing in local groups as a hired extra, then it will become an income source

I used to do that before the injury, just need to get my chops back

[MelanieGiles]

Oh do start playing again. I can imagine that you must be very attached to the viola. I still have mine somewhere in the attic probably gathering dust, but it was not an expensive one, but I really did enjoy playing. Another thing I keep promising myself I will take up again, but just don't get the time!

[Cmw328i]

Hey Melanie,

I just looked over my paperwork when submitting a new I/E... my viola is actually listed as an excluded asset... not to re-hash, but correct me if i'm wrong... if its an excluded asset they cant FORCE me to sell it and take the funds from it can they?

also... i got a call about the I/E i sent, they said they needed more evidence to support my review... 2 days later i got a letter saying they've increased my payment £40 which is NOT affordable, i'll be in a situation where i'm going to be either not buying food, not paying rent or not paying petrol for work, a friend in the industry suggests that i cancel my direct debit immediately until this is resolved and pay only the agreed ammount for now... what do you think? They sat on my I/E for 6 weeks before calling me to say they wanted more, and then upped my payment without consultation... to me this seems extortion... they up my payment without consent PLUS ask me to sell an excluded asset?? something is seriously wrong here. i want to honour my agreement, but it seems this company is trying to take me for a ride...

[Cmw328i]

for the record, i've sent a new I/E my friend helped me put together complete with evidence and along with the guidlines for things like petrol costs by mile and whatnot, sent that in over a week ago. i cant afford the new payment! Im thinking i should call them out on this... you cant just say "not enough evidence" on phone and send a letter 2 days later changing it all when they sat on it so long and made up their own I/E for me... if they werent ok with what i sent, they SHOULD have contacted me weeks ago!

[MelanieGiles]

If the viola has been excluded, then it is not included in your IVA and I therefore wonder why you are being forced to sell it.

For your IP to increase your payment by £40, they must have carefully reviewed your figures and assessed them accordingly based on what you presented. If you genuinely feel that the increase is unreasonable, I suggest you contact them directly to express your concerns. You could cancel your direct debit in the meantime, and set up a standing order for the amount you believe you can pay. An IP firm should only invoke an increase in the direct debit sum, once their clients have agreed the increase is affordable.

Which firm are you with?