Help I'm drowning

[SharonOR]

We have been in our IVA since June 2006. We have a review every 6 months and were recently told that we were not allowed to claim more that £350 for food and housekeeping even though I care for my aged parents who live with us and have no financial means. The creditors have apparently stipulated that, that is enough for us (1 diabetic, 1 stroke victim, 1 lactose intollerant) to survive on. We are struggling to keep up and our IVA repayment has been raised from £354 to £500. Petrol, travel and rent have gone up as have utilities but the IVA repayment is also going up regularly, and we are under more and more pressure to pay more into the IVA. How are we to survive? I have considered suicide so often it is shortly to become a reality! [V]

We were also told in the beginning that we were entitled to 3 payment holidays during the 5 years. Big joke! When we asked for one to help out our daughter who lives overseas and was starving herself to feed her baby as she couldn't work and her partner barely earns enough to pay for a roof over their head and utilities, we were told we were not allowed that anymore as the creditors didn't like it. I thought that when we entered into this contract it was binding for BOTH side not just our side. How can the stipulations now be changed?

Please can someone advise? Would bankruptcy be a solution?[?]

To crown it all the last tiem we had a review our original documents were lost and this time I made sure someone signed for them only to get a letter stating that I have not sent the documents in although I have proof of delivery and a signature. How can these people be so incompetent with our documents?

[aguise]

Hi Sharon and welcome to the forum.
Why are they putting your payments up by so much. ? have you had large wage increases or overtime. If your proposal states three payment holidays allowed, it is at the discretion of the ip. I would ask to speak directly to the IP it is in my opinion rubbish that the creditors dont like this anymore, most proposals have this clause, but it has to be for good reason.
? bankrupcy, do you own your own home ? any equity, if you can post this advice will I am sure be given.
Dont allow this to get you down, speak to your IP, you and your family are more important than money.

Ang

[MelanieGiles]

Hi Sharon and welcome to the forum

Why have your IP payments increased so much - is this an increase stipulated by the proposal itself, or as a result of your IP's bi-annual review? If the latter, this does seem very harsh from what you are saying.

I am suprised that your IP referred to "payment holidays", as what they mean is that you do not default on your IVA until 3 payments have been missed. This is not the same thing at all, and if they were described in the manner you record then this is pretty reckless advice.

IVAs are meant to bring control to your finances and allow you pay affordable repayments over an agreed repayment period whilst living a comfortable life, and having some incentive to keep making the payments. It sounds as if in your case, your IP is attempting to squeeze every penny out of you to the extent that the IVA has put you exactly back into the position you were before you entered into the agreement - ie financial hardship. You may well find that bankruptcy is a more attractive option, as the Official Receiver will only take between 50% and 70% of your agreed disposable income by way of ongoing payments.

[SharonOR]

This is exactly why I am my whits end. It seems every time we get a few pennies more by me working a few hours longer it is taken by the IVA. I already work 0600 - 2000, to keep enough in the account to pay the bills. I thought my money problems would be over but they seem to have increased. I have now been signed on permanently in my job so earn less than as a temp but have more benefits (pensions, paid sick leave etc) and job security but our disposable income has dropped. This doesn't seem to bother the IVA people as the pressure continues to pay more. We agreed to £354 per month (not £500), with the proviso that should we have a windfall or earn more than £500 above the salaries we went into the IVA with, we would go halves with the IVA. This hasn't happened. They seem to be sucking everything from us. Live comfortably, we struggle! I barely have money for food in some months. I check my bank balance every day - it is almost an obsession just in case I don't have enough to meet my bills or buy food. I have 2 aged parent to look after without help of benefits as we nor they are entitled to any.

Today I was so tempted to jump in front of the tube it was sickening and I had to sit down. I am sure the station staff suspected this as he stood very close to me.

We have never missed one payment and everytime they ask for more we pay it, too afraid to say no. We haven't had a holiday in 6 years, I can't carry on like this. I am at breaking point and when I speak to the IVA person, she says oh have a nice restful weekend and things will be better on Monday. No they won't! On Monday I will not have money to buy food for the week as we have £10.00 between us until next payday!

We don't own our home - we rent and it has just gone up to 50% of our salaries. We can't afford to move as we don't have a deposit (like I could save for one without the IVA taking it) and our credit record is poor (obviously). We have been told we would need to pay at least 3 months rent up front plus the deposit of 2 months rent because of it. That's 5 month's rent up front. It is cheaper to stay and pay the higher rent.

[aguise]

Hi again Sharon this doesnt seem right. Have you spoken to your actual Ip, if your income hasnt risen then they cannot justify putting payments up, yes they have a duty to run the iva properly but not to make life unbearable. How do they justify the increase ? they must inform you of where you are supposed to find the money from. If you do earn overtime any rises in expenditure, as long as proven, can be offset against the rise first.

Ang

[SharonOR]

Hi Ang
When we had our last review they said the creditors only allowed us xx for certain things and we were not allowed to claim anything above that. I couldn't understand this and the "handler" didn't explain it very well. An example: we are only allowed to claim £60 per month for clothes. This is for 4 adults. One winter coat costs £40-£60. I am a PA I have to dress in suits. They don't cost £2.00. My husband hasn't bought new clothes in 3 years. My Mum tries to make her clothes but material costs money. We are living like 3rd world poor people. I don't even invite friends round anymore as I am too ashamed of what my home looks like. Never mind the fact I would have to feed them!!

Yes we got ourselves into this mess but with the extremely generous help of the bank which is our main creditor. We started off with a £5,000 loan and in 18 months had one of £48,000. Consolidation on top of consolidation and when I said No it didn't seem a good idea I was persuaded it was the only way. Then BANG! I broke my leg and was off work for 6 months. When I went back to work I asked the bank if we could reduce our payments for 3 months to get back on our feet. - No Way they bounced cheques, added interest, charges on charges etc etc.

And this is the result.

[aguise]

I would demand to speak to your IP and not anyone else. All things rise in cost council tax, rent. I would ask for a phone call, write down all the things that you want clarified, Why your payment has gone up, why can rises in expenditure not be offset. I am only the same as you in an iva so wait for more technical help and advice. We have paid extra into our iva via overtime but have been allowed to offset certain things as well like a rent rise and my need for glasses.
Maybe bankrupcy could be a consideration, you should not be put into hardship.


Ang

[J-DOUBLEYA]

I agree with Melanie - why not go bankrupt and have an end to all this- at least you will have enough money for living exps !

[kitty]

Hi Sharon,
you are evidently a great person (caring for two elderly parents, working long hours) you deserve a medal!
It seems that you are being treated terribly.
I am not sure how benefits work alongside an IVA, but are you not entitled to carer's allowance? (maybe not if you are working?).
Wish I could offer some constructive advice.
As suggested, bankruptcy would appear to leave you in less of a financial dilemma.
It seems so unfair that you entered this IVA, offering a fair and workable payment and now all involved are asking for such a large increase on your monthly payments.
Good luck, and hope all works out for the better.
Kitty x

[MelanieGiles]

You have to decide what is the figure you are comfotable to pay each month, compared to the figure your IP feels is fair. If the figure you feel is to low for the IP, then is there any point in having a miserable existence for the next couple of years?

[jpj]

Im sorry you are suffering such hardship.

Unfortunately as your post says, you are trying to buy clothes for 4 people on £60 a month!
Your IVA is designed for the 2 of you and not to cover your parents as well, Unfortunately I dont think your IP will ever give you enough funds to support the 4 of you.
I would seriously consider bankcruptcy to clear this debt out of your lives once and for all.
Debts are never worth considering suicide over,and your parents would be devastated. I knew a friend of a friend who jumped in front of a tube train and lived for 5 days after!! its never always an easy way out!

[beth170]

GET OUT OF YOUR IVA, GO BANKRUPT, we have paid ours for 5 years now they are going to bankrupt us as we cant offer 100p in £ we would have been better of going bankrupt straight away as then there was no equity in our house, but now its gone up by 70000 and they want the lot. As you are renting they cant touch the house and you are only bankrupt for 1 year, in an iva you are in it for 5 years. Go bankrupt and get your life back, dont jump in front of any train and belive me i have thought about it because if i died the house would be paid for by the insurance. Money is not worth dyeing for, what would everyone do without you, how would they feel. thats what stopped me, and then i started thinking about it, well if i died who has won? them or me? and i am dammed if they are going to win so i am going to make sure that they dont. And dont you let them win either consider it as a battle and by dammed your going to win it.[:D]

[jpj]

Well put Beth.....A very good opening speech there...welcome to the forum!! )

[SharonOR]

Thanks everyone. It is good to have such a lot of support. As we are only in this country on indefinite leave to remain we cannot apply for citizenship if we are bankrupt. Not that we will ever get there withthe IVA as we cannot save the £750 needed to pay for it. I need more knowledge of bankrupcy. If you are only bankrupt for a year this would be a hugely better option. I don't mind waiting another year for my citizenship. Does that then mean after a year we will be free and clear except for the bad credit record for 6 years? No short term credit etc? Could we still qualifiy for a mortgage?

[MelanieGiles]

Which country do you originate from Sharon?