had my IVA accepted but with some modifications

[guiness]

Hi, found out today that I'd had my IVA accepted but with some modifications.

1. They want me to remortage in year 4 to release the equity in my house which is fine I'm ok about that.
2. They want to increase my payments by another £40, and I really cannot afford it!

In my expenditure they set out £100 for a contingency allowance and two of the creditors thought this was too much. The person whom I spoke to at my IVA company looked at my expenditure and felt that yes this was quite high but felt that in other areas the allowances I'd been given were low i.e clothing allowance I was only given £75 and there are 7 of us to clothe.
He is speaking to the creditors tomorrow to try and negotiate but its not looking hopeful.
Don't know what to do if they will not budge as I know that extra £40 will probably mean the IVA may end up failing.

[MelanieGiles]

I agree that the miscellanous provision is high - but clothing for 7 people should be £150 in my book! I assume that the children are all still in full time education.

Curious to know why your IP is going through the expenditure levels with you at this stage! This should have been done whilst the proposal was being prepared.

Do not accept payments that you feel that you cannot afford to pay. The reality is that you won't be able to pay and then the whole IVA just becomes a complete waste of everyone's time and your time and money. Best to put it to bed now and look at the merits of other options, than convert one lot of debt pressure into another.

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

[guiness]

Thanks for the reply. I was a bit annoyed that they were starting to play with figues at this stage too. My IP was on holiday so it was actually someone else who was looking at the figures that she had set.

[Oliver]

You need to be very sure that you can afford the agreed payment otherwise you could find that your IVA will further down the road due to unaffordable payments.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[iva_squirrel]

Hi guiness,

Do you think this new agreement is affordable for you? You need to be as realistic as possible and make sure you will be able to make the payments during the lenght of the IVA.

Regards,
Michelle P.