I have received a windfall.....

[mrw99]

Hi,

I have received a windfall. It's not huge, but it needs paying to my IVA.

There is a problem though. We're looking to rent somewhere else, and it's looking increasingly likely that unless we have the 6 month rent upfront, we are going to struggle to find anything. The windfall will cover this.

Our landlord is selling and on the verge of completion. We're in limbo with a rolling contract for who knows how long. With 3 kids at school, we need to be in control, and not being dictated to by a faceless landlord. One child moves up to secondary school next September, so we need to create stability now.

So, what do I do?

Option 1.

Pay the money into the IVA, and not be able to move? We have to move for economic (mainly commuting costs) and future housing needs.

Option 2

Keep the money, and use it for advanced rent, but risk breeching the IVA.


We cannot afford to continue living where we are and we cannot keep the windfall money. Both scenarios potentially end in bankruptcy.

We don't qualify for help in terms of social housing, because I earn too much. Financial obligations and poor credit history limit our options.

Every time there's some light, someone pulls the shutters on us, and we end up despairing of out situation. So stressful.

Just looking for advice. I really don't know which way to go. I want to do the right thing, but I'm not sure what that is. I can't help feeling that family and personal relationship needs take priority over creditors.

[kallis3]

Hi,

I think you need to speak to your IP about this. Hopefully they will let you use some of this money towards cheaper housing.

[rayb]

Hi,

Family always take priority over everything especially debts!!!

I feel that your IP should let you use all the money for a deposit and would be unreasonable given the circumstances to take it off you.

Let us know how you get on.

[debbie.s]

Hi,
If you use it to pay 6 months rent upfront, does that mean you do not have to pay any more rent until 6 months are up?

[rayb]

Hi Debbie,

No, I believe it is more like a deposit because of your financial status

[kallis3]

I'm not sure on that one as I know luluj has to pay six months in advance but I don't think it's classed as a deposit.

[mrw99]

Just when you think there is no humanity in this world, something occurs to prove you wrong.

We received a phone call from the letting agents with who we were trying for a property. The landlady did have a rental guarantee insurance requirement. My having an IVA would fail that, even with a guarantor. The letting agent said that the landlady had changed her mind, that she was willing to go ahead with us renting, and that we didn't need to worry about extra deposits or paying up front.

We've taking the position of declaring everything up front. How we got to where we are, how we are dealing with it etc. I think that has gone a long was to convince the landlady that despite our dire financial situation, we are decent people who wont mess her about.

The house is plenty big enough for our needs. Has a nice big cellar for brewing beer and still big enough for the kids to use as a den. I see a pool table going down there The real bonus is that the rent is very reasonable, at £105 PCM under our maximum budget. We can easily afford it, my IVA and my partners DMP can continue and we wont have to go bankrupt.

We've just got to go through the referencing now. Although they did say that was a formality as they know our financial situation isn't good, but they will overlook that. It's mainly an identity check and to make sure our guarantor is ok, which he is.

At last, something is going right. Funny how things change in a couple of hours.

[rayb]

Well done. Glad you got it sorted out

[kallis3]

That is brilliant news! I'm sure the references will be ok.

Good luck with your new house and drink a pint for me when you have some ready!

[Skippy]

Excellent news, it just goes to show that although an IVA can make things more difficult, it doesn't mean that anything is impossible.

Good luck in your new home x

[canaries]

Pity you still need a guarantor, they still aren't taking any chances with you, better to keep some of the windfall for emergencys as you never know.

Also pay a couple of mths in advance just in case and then offer the rest to your IP, sounds fair

[Pandy]

Hi,
Great news from your letting agents,
I would still contact your IP and explain the situation as you will need some extra funds for removal costs etc, so you may be able to keep some of your windfall.

[Shining]

Fab news and a positive post for other posters who are in a similar situation that there is a possibility out there to rent without the big deposit. x

[leaKybrain]

thats fantasticnews, you'll probably find the landlady knows someone who's been in an IVA and so knows how it works and that its not a slur on your name. So pleased for you

[Broke of London]

Congratulations! Renting in an IVA is stressful but I had a similar experience and found that taking the time to explain about how IVAs work and being upfront with the letting agent paid off as they convinced the landlord for me. I had to get a guarantor and pay an additional month's rent as deposit so it wasn't too bad.