I am due to start my fourth year of my IVA in August this year but have just found out that I am pregnant! My husband and I are both over the moon, it’s our first baby, we got married in September last year and didn’t think it was possible as we are both older (I turned 40 in September last year)! We are very excited but being cautious as it’s early days yet!
I have been wondering about my IVA as my baby will be due around the time of my IVA review. When my IVA commenced I was paying £226 per month based on debt of £26,000 (31p in the pound).
This has increased over the duration of the IVA due to changes in my life:
Year 1 – £226 per month
Year 2 – £286 per month (due to a pay rise)
Year 3 – £525 per month (my partner, now my husband, moved in with me
Year 4 – £525 per month
I calculate that I will have paid approximately £19000 by the time of my 4th year review (not including fees) and wondered what my options will be.
I would speak with your IP and ask about a variation meeting to conclude your IVA once your income drops or the baby is born. Given your circumstances I think this is very possible that your creditors will accept payments to date as full and final
Regards
I am a nearly qualified Insolvency Practitioner with 5 years experience in the industry.
Congratulations! I hope it all goes smoothly and you get much joy from your child.
I am assuming that your IVA includes an annual review of income and ability to increase contributions, which is why the payments have increased over the years.
You will need to continue making the monthly contributions in accordance with the IVA proposals in order to avoid default or failure.
You do have the option of approaching your IVA provider and discussing offering a variation to the IVA creditors, whereby you demonstrate your excellent history of payment and seek to offer a lump sum in full and final settlement early or reduce the term of the IVA.
However, creditors are likely to want oyu to continue paying £525 per month for the remainder of the IVA to maximise their return, but it may still be worth a try.
Congratulations! That's fantastic news, you must be so happy. Mention it to your IP and let your IVA company know that your expenditure will change in the coming months to prepare for the arrival.
I'm sure it won't be a problem, and unless your expenditure is particularly high you may not need a variation. Just keep your IP informed at all times and get any agreed changes to your monthly payment in writing.
Congratulations from me too and I completely agree with Andy. However, I would suggest asking for a reduction in payments earlier as you will need to be well prepared for the arrival. My wife and I had our first child nearly two years ago when I was 42 and she was 38 and I highly recommend it.
Congratulations from me as well and I hope you get your payments sorted.
Michael - can't believe it's been nearly two years!
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
It only seems five minutes ago! I know what you mean about the aging though! My daughter is 22 and still gives us sleepless nights!
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
dorset good advice there, I must admit I agree with Michael that you should contact them soon. If you are already paying nearly double what you have in your proposal, and I assume I'm right from an early post, that the 15% variation is on your original payments then surely there is leeway for reducing payments now.
Theres stuff to buy in prep like cot and pram to name but two very important things.
Congratulations though, its wonderful news and am sure you will age just as fast as the rest of the parents............quickly !!!!!
welcome anver, its nice to see another professional who can give advice. There are a number of excellent experts on here who you will gain insight from.
Many thanks for all the replies, they are much appreciated and I am hopeful that my IVA company will take into account the fact that I have made increased payments above my original proposal.
I really don't want to have to take payments breaks and then have the IVA extended so am hopeful they will consider all the options.
Fingers crossed that you can get this sorted dorset.
Let us know how you get on.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Update on progress of my story, any views and opinions very welcome. I have spoken to My IVA company now that I am past the 12th week of my pregnant. At first they stated that I would have to simply take a payment break which I wanted to avoid. However, they have sought advice higher up and have come back to me today with the following:
They will arrange a variation meeting but on the understanding that I have to continue making current payments up until baby is born in September.
They want me to provide within next seven days:
1. Monthly take home pay whilst on maternity leave.
2. Child care costs on return to work (have informed them that I won’t be able to return to full time work but probably part time)
3. Monthly take home pay when I return to work
They have stated that we have plenty of time as my final year review is not due until August, however I would like to know one way or another what the outcome will be sooner rather than later, I don’t want to spend my pregnancy worrying about money etc which I am now doing and wondering what is going to happen. However as they have asked for the estimations within 7 days am hopeful the meeting won’t take months to arrange.
I think they should sort this out for you now - you should be enjoying your pregnancy, not worrying about money.
Hopefully they can get a meeting sorted for you - one of the experts will be along with advice as I'm not sure at all.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
