I am at my wits end and don't know where I stand

[Neverguess]

I have been with Debt Free Direct for 36 months now with no problem. Since january I have had an increase in rent and bills as a housemate moved out. I sent all information they asked for plus more evidence from estate agent, fellow housemate etc that they hadn't asked for. They are not reducing my payments as they are now taking my expenditure for all other outgoings as the figure I used 3 years ago when starting the IVA. Things have increased on the last 2 reviews and I have informed them and they have amended the details as required. Now suddenly they say those figures can't be used, even though they have used them for the last 24 months! I am at my wits end and don't know where I stand as far as bankcrupcy stands and further payments I may have to make, I don't want them to get a penny more if that happens as they have treated me so shoddy.

Also, I have been paying more than the first agreed amount for the last 2 years due to a wage increase back then. I can't physically afford what they are now asking for as they are using figures from 3 years ago!! Can you shed any light on what I should do please. Thanks in advance.

[MelanieGiles]

Hi Neverguess and welcome to the forum. Also a Happy Easter!

On the basis of the facts you have provided, your IP is wrong in taking your expenditure back to that presented in the IVA 3 years ago. This just doesn't make sense, and firstly I suggest you speak directly to the IP to get him/her to explain. It seems to me that this decision has been made by a staff member rather than the IP themselves. If this fails write them a stiff letter. In the meantime, calculate the level of payment which you can afford and continue to pay these over. Can you afford to make payments at least at the level of your original IVA? If not, then the IP will need to propose a variation by calling another creditors meeting.

Do not even think about bankruptcy at this stage - if all else fails you can now take the issue to the Financial Ombudsman to look into or the IPs own regulatory body. I rather suspect that this will not need to happen, when you manage to speak to the IP themselves.

Do be sure to let us know how you get on!

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Adam Davies]

Hi neverguess
As Melanie states do not stop paying,you are 60% into your IVA and the finish line is in sight.
Speak with your IP and do not stop until you get some sense out of them .I agree with Melanie in that your case is probably being dealt with by a member of staff so insist on spaeking to your IP,afterall they are being paid well to administrate your IVA.
Good luck

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[Neverguess]

Thank you so much for that Melanie & Andy. I am chasing them today as I have already sent the stern letters to the MD's who's names I could find so we will see what happens.
I can't afford to go back to the original amount I was paying, so it looks like they will need to hold another creditors meeting. Thanks again.
I will let you know what happens!!

[MelanieGiles]

Make sure that you compile a detailed income and expenditure statement showing what you can currently afford, and send this to your IP as soon as you can so that they are aware they are facing variation proceedings.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Neverguess]

I have just had a review so they have had all of that, unless there is something else I need to tell them?? I have sent an email asking for my IP to call me and I'll tell them they need to arrange a new meeting if necessary.

I am so cross with them right now!! They should know all this! Thankfully sites like this exist.

[Neverguess]

Update - Nothing so far! I received a letter saying their complaints department are dealing with it and will be in contact. Two weeks later, nothing. I'll let you know what they come back with.