Im in a bit of a dilema, just looking at starting my 2nd reveiw and have realised that my IVA is proberbly at risk!!! When we took the iva out the calculations were done on an average wage as both of us bring home varying wages each month due to differnt unsocial hour payments and overtime etc etc. We agreed to the the amount set as we had never had a basic month and had no idea what our basic take home pay was. A lot has happened in 2 years..... both have had pay freeze my unsoical payment has stopped and the OT for both of us is becomming hard to find our actual basic pay is set around £400 less than 2 years ago we both have to try and do as much ot as poss just to make the IVA payment...this obvious cant continue as its not gaurented and neither of us are getting a break from work, or spending anytime together which in turn is affecting our family life. I knew the IVA budget would be tough but when you have to work extra to bring an extra £800 per month just to break even with no treats etc it gets you down, as a family of 4 we have £80 per week to buy all our food/clothes/petrol etc etc Im sure people on benifits have more than that??
We cant and dont want to go bankrupt due to our jobs. I want the IVA to continue as we want to pay back as much debit as poss, We have applied for missold PPI on a secured loan we will know if we have been sucessful in October it will total approx 21K so we could pay that into the IVA along with the payments already paid approx £16K would leave us just under £4k short of the expected end dividend at the end what do you think our options are?? Do you think they would accept a F&F with the secured PPI?? Or would they fail the IVA if we ask to reduce the monthly payments??
Speak to your IP about this - it maybe that payments can be lowered, the IP can lower them by up to 15% otherwise it has to go back to the creditors for a variation.
I have no idea whether or not they will accept the PPI claim as a full and final. It may well be that the original creditor keeps it to offset against their debt, which in turn increases the dividend to the other creditors.
Speak to your company and take advice from them.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Thanks, the PPI is for secured loan so not included in my IVA, as for a 15% variaition that would just be a reduction of just over £100 so still around £300 short and thats without the increase costs of food and bills!!!!!
Sorry, of course it isn't! Attention span of a goldfish when I have the joys of ironing to look forward to!
You need to speak to the company as soon as possible to see what you can get sorted out.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I think ( could be wrong here) that the whole basis for your payments ( ie calculating disposable income) is fatally flawed and should never have been based upon shift premiums and overtime, but purely the basic salaries. Then the shift and OT payments would have been paid across at either 50/50 less 10% disregard, or just 50/50 (dependimng on your proposal). Either way, you have, effectively, been overpaying and this should have some bearing upon how your IP treats this situation.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
There isn't necessarily a correct way to work out income for the I&E form but only using the basic would be best practice. However, as the calculations were agreed by all parties we couldn't say they have been overpaying...I'm not sure this argument would hold any sway.
It is definitely worth considering using the PPI for a F&F. To ensure it isn't captured as a windfall I would be tempted to propose a F&F saying you will only reclaim it if the creditors agree to it being used for the intended purpose.
I think it's a bit too late for that now though as the claim is already going through.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Broke of London wrote:
There isn't necessarily a correct way to work out income for the I&E form but only using the basic would be best practice. However, as the calculations were agreed by all parties we couldn't say they have been overpaying...I'm not sure this argument would hold any sway.
It is definitely worth considering using the PPI for a F&F. To ensure it isn't captured as a windfall I would be tempted to propose a F&F saying you will only reclaim it if the creditors agree to it being used for the intended purpose.
Good luck x
I am not so sure BoL .. yes, the figures were agreed, but kaza was relying on expert advice from her IP, who, as nominee, was supposed to be acting in the debtors best interests at that time. That advice was flawed.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
It may have been best advice to include the additional payments to make an iva affordable or Kaza may have felt sufficiently confident that they were a regular part of her income to include them. We can't say it was bad advice without knowing the background. Even if it was bad advice, they are our proposals and if we're not happy we don't proceed. No point agreeing something you're uncomfortable with and then complaining. Who's responsible if you knowingly take bad advice??
Hmmmm -- You don't often knowingly take bad advice -- you take advice believing it to be the best advice (which is why you go to an expert).
For instance, if you are buying a house, you go to a solicitor. If he turns up a charge on the property yet tells you there is no need for concern and you can ignore it, the chances are you will take his advice. If 5 years later someone appears to enforce the charge and you lose the house, would you just accept it because you agreed to the purchase in the first place ? I think not -- you be after the solicitor.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
In cases like these (and I'm talking generally not commenting on this one) if someone feels uneasy pledging additional income for basic calculations because they feel it isn't certain then they know the advice is wrong for them. If they are confident to pledge that income because they feel sure of it's continuance then the advice is right for them and would be judged good. Advice given at that point in time cannot be called bad if circumstances change. Either way, we chose whether to take advice, get a second opinion or not go with the advice at all. Personally, I agree with you about not including overtime etc for basic income calculations. But that doesn't mean the advice was necessarily bad. Good and bad aren't really suitable descriptors anyway, I'm talking about whether it was appropriate and only we know whether advice is appropriTe to us.
Sorry for the hijack
Hi kaza,
Without my unsocial hours payment I wouldn't have entered an IVA. Do you get a minimum amount or average? Ask IP to look at your I&E to see what can be done.
The road is 72months long starting September 2010.
I hope you can get something sorted Kaza. My circumstances may change too and put me in the same position so I know how you feel. The f&f sounds like a good offer in comparison to what you can afford to repay if you carried on after your circumstances changed. Funnily enough, we are at roughly the same point in our ivas with a similar amount available (potentially in my case not confirmed yet) to offer creditors as a full and final...spooky! Fingers and toes crossed for you x
