I am in an IVA, which is not good for me

[kallis3]

Good luck Mrs S. I'm sure you would be very good at it.

[Skippy]

Go for it Mrs S, you'll be great. It's definitely something I would do if I had the time.

[David Mond]

Where in the North West do you live Mrs S?

[kallis3]

If I can point you in the direction of the Frugal Friends map David, she's on there so you can see where she comes from.

[mumfop]

Hi Everyone. Just to refresh, I am in a joint IVA with my wife, but recently got a much better job with a good increase in salary. I am with Debt Free Direct, but was unable to discuss this with an insolvency practitioner because I could not get past the person on the phone. Debt Free Direct initially said that any increase in salary would mean that my creditors could ask for an increase in our payments up to the value of 50% of any increase. When I spoke to a lady on the phone (Sounded very young and was obviously not who I needed to speak to) she said that I would have to pay 100% of any increase to the creditors, and would not listen to any argument to the contrary. Eventually I gave up trying to speak to an insolvency practitioner and wrote a letter of complaint. The advice being given out by the phone operators is contrary to what is written in the agreement. This week I received a letter back from a lday called Rosy Edwards (Complaints officer apparently), who has apologised for the confusion, and said that it is possible for the creditors to claim 100% of any increase in salary, but that the 50% referred to any overtime (Clause 2.4), commission or bonus. This was not clear to me at the time of signing the contract, and Rosy has said that this will now be incorporated into the training regime for phone operators. When I signed my IVA contract, I would have signed anything put in front of me just to relieve the pressure and try to get the will to wake up every day back again. This made me (Presumably many others too) very vulnerable, yet companies like Debt free direct dont really support you when you need it most. I would hope that they would have a selection of FAQ,s at the very least. I would just say now if you are entering an IVA, be wary of the section about increased salaries and increased payments. The ability of DFD to take 100% of any increase gives people little reason to try to better their own position, and, in that circumstance, may not actually be the solution. I have to say that I am a council tenant, and have no tangible assets so alternative solutions are probably easier for me to consider than others. Best of luck to all, and thank you to the experts who helped to get me started on the bankruptcy process a few weeks ago. Paul.

[kallis3]

You can be expected to pay up to 100% of a rise, but normally a new I&E would be done, and you usually would keep some of it.

A rise in payments means that you are able to pay back a bit more to your creditors, which can only be good.

Are you still in your IVA? If so, you won't be able to petition for bankruptcy until the IVA has failed.

Also, you will be expected to pay across 50% (I think) of any disposable income above £100 per month for three years, so you will still be paying.

[Lisa2009]

Sorry David, only just saw your post.
I live in Cheshire, not too far away from Northwich.

[David Mond]

Mrs Skint - Why don't you contact me as I might have something interesting to offer to you. You can get my email address by clicking on my Avatar.

[Julie]

Mrs S - you'd be fantastic and the experience you have would be a great plus for the CAB. I'd love to have a job giving debt advice.

Mumfop - I know exactly how frustrating it is having to deal with a poor IP. As Jan says going BR could still mean making payments for 3 years, but at least it will be properly managed.

Keep us updated and good luck

[Skippy]

Go for it Mrs S!

Mumfop, good luck whatever you decide x

[mumfop]

Thanks again for the advice everyone. I did not know that the IVA had to fail before I can petition for bankruptcy, but no matter, I have to do it anyway. I have now missed two IVA payments, so I think I only have to miss one more before I can get the ball rolling. My wife has just been told she will be losing her job within a few weeks, so to continue with the IVA (A joint one) would be impossible now anyway. Thanks again everyone. Paul & Boss.

[Julie]

Paul - it might be worth your while phoning your local courts now, as some of them have a waiting list. You can also make a start on filling the statement of affairs form. You can do it online and save it as you go along, so it doesn't have to be done at one sitting, as it were.

I would also contact your IP about your intentions, see if things can be moved along a bit.

At least this way, you'll be ready.

[kallis3]

Yes, you only have to miss one more payment and then it will fail. You will get a letter from your IP and you can then petition for bankruptcy. It will cost you £495 and the forms can be filled in online.

Let us know how you get on.

[mumfop]

Hi Jan & Julie and thank you both very much for your posting and encouragement. I have already started to fill out the forms on line, and hope to be ready with them soon. I am keeping back the IVA payments to pay for our bankruptcies (Both my wife are doing this separately but together, if you see what I mean, so that will be £495 x 2), so I am not really sure if it would be a good idea to contact the IP to move it along a bit. Every month I don't pay means I have a little extra towards the total cost. I start work very early in the morning, so need a car to keep my job. My current car is worth around £3000, and I have been told that I can keep vehicles up to £2500, and perhaps could keep mine if I can come up with the difference between the allowable value and what mine is worth (£500). Does anyone know if this is so? Thanks once again. Paul & Boss.

[kallis3]

I would have a look at Parkers car guide, just to make sure exactly how much it is worth. You might be surprised to find that it is worth less than you think, in which case you may be ok anyway.