EVEN IN A IVA IT STILL CAUSES STRESS

[james.c]

After a positive first year, found hard etc.

Just spoke to my IP about an anuual review and may now have to bankcrupt.

Dont know what i am going to do, they are asking for increased payments plus more, cause of my circumstances cand do it, its like they want my arms and legs.

I can still afford my payments which is 47p to the £, but any more cant do it, which means if I go BR i have no paper work from my creditors as i through it away, then it will go on my credit rating for another 6 years from when BR is accepted, and my creditors get no more money.

Just dont not what to do now.

When i was going in to an IVA all my friends and family wanted me to go BR and i said no cause i felt i had a responsibilty to pay my creditors back, tried to do the best and its just about to backfire.

I had no assest, no house etc, maybe i should of gone BR 12 months ago.

no matter how bad money gets, theirs stll alot more important things in life - 48 payments to go

[scotlad72]

Hey There,

This is exactly how i feel too, i have spent my first year struggling on IVA, borrowing from family and friends, esp as i could not afford dental treatment and it ended up costing me hundreds of pounds, which i had to borrow, so now as well as paying IVA, i am paying friends a monthly payment.

My friends advised me to go Bankrupt 1.5 years ago and now i am thinking that i am going to have to do it now!

Im really worried and have no idea what to do.

I am curious to see the answer for james c as i think i need the same advice.

It is no wonder a high percentage of IVA's fail!

[Adam Davies]

Hi James
What's happened ?
regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[james.c]

Concerned about my annusal review i rang my IP and asked when i would got the things through for the post for my IVA review and he siad in next couple of weeks.

Went in to detail, told him I had pay rises etc and he told me what ever extra i earned i would have to pay 50% of it in to my IVA, i was under the impression that this went up after the review and not backed dated.

When i wnet in to the IVA a came out with £1559 a month, and my surplus was £349 which i have paid every month.

SO £1559 my salary at the time equals over the year - £18708, when in fact my actual take home pay for the year was £20182.71, which means i got paid an extra £1474.71. so 50% of that is £737.35 the i owe my IP, I dont have it!! this money went on paying the increase in bills over the year, admittley not all fo it, probably about £150 of it, but the rest as gone on buying things for when my twins arrive in 4 weeks.

I now come out with £1800 a month i worked out my income and expenditure which is £1250 as a single perosn plus the allowance of £194 for my twins clothes and food which means my outoings is now £1444.00, leaving a surplus for the creditors of £356.00, thats if they accept my I and E becuase it gets complicated becuase i dont live with my girlfriend, but also i dont have the £737.35, becuase i have spent it, it wasnt as if i spent it going out, it was spent on essentails that will be needed for the twins.

If my IP turned round and siad right we have reviwed it you must pay £356 a month and you dont owe us the £735 then i could manage, but i think i am screwed.

no matter how bad money gets, theirs stll alot more important things in life - 48 payments to go

[Adam Davies]

Hi
No IVA will be without it's problems and this is just a hurdle that you need to [and will]get over
From memory your IP stated that no increase would be back dated,lesson that we all need to learn is to get responses like this in writing or email for situations like this.
My advice James is to ask your IP to tag on two payments at the end of your IVA to cover the increased income that they want[£737]
The fact that you are proposing to pay £356 instead of £349 will surely be accepted by your IP as they have no need to contact your creditors.
Put it all in writing to your IP
My bet is that it will be accepted no probs
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

James

I actually don't think that you have a major problem here. Firstly you admit that you can afford to make payments of £356 - great, as this means your IVA can continue comfortably. Secondly with regard to the additional income, try and provide details of the actual expenditure you have incurred, which must firstly come off your 50% share of the increased earnings. If there is a balance due, suggest that this be added to the end of the IVA, but in future I suggest that you check your wage-slips every month, and if additional monies have been earned then set them aside in a separate account, or better still hand them over to your IP.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[james.c]

Hi Melaine/andy

Thank you for you advice, maybe i have have wound myself up a bit too much about this and you have calmed me down about this.

I will do what you have both said and i think in future i will send a copy of my payslip to my IP every month. I would advice any one else to do the same as well and then you dont get in ssame situation as me.



no matter how bad money gets, theirs stll alot more important things in life - 48 payments to go