IVA failure

[natalie.b]

Hello

Does anyone know what % of IVA's fail. I have been reading through a lot of the posts and some have failed very quickly.
Has anybody on the Forum gone through an IVA and reached the other side or are close to it!
I have submitted all my paperwork but I am concerned that I havent made allowances for things like the dentist.
Can I speak to the company I am dealing with and recalculate the figures.
How does everyone cope when it their childrens birthdays and at Christmas.
Can you have payments breaks, if so how many throughout the term.

[coco]

Hi Natalie b

I am in the process of my IVA failing due to incorrect figures on the expenditure form, because the allowance was never accurate in the begining i am now finding it hard to find the money for car tax, insurance cloths etc. (i am living on the basics i.e week to week but not for things that require later on)I have been in the IVA for 4 months but have made 9 payments so far. I wanted the IVA to be approved so agreed to figures not knowing at the time that it would become difficult to maintain. All i say is if your not happy about the figures discuss the things now before the creditors meeting with your IP or you could possibly be in the same situation as myself. I have so far made payments totalling nearly £4500 when is should have gone BR in the begining.

51 payments to go
(I apologise for my keyboards poor spelling and grammar)
http://coco.blogs.iva.co.uk

[MelanieGiles]

Hi Natalie

I do not have details of the current percentage of IVA's which fail to successfully complete, but there is research which indicates in excess of 40% do not provide creditors with the dividend they were originally pledged.

This can be due to many reasons such as

1 IP costs eventually being higher than anticipated.
2 Creditor claims being submitted that are higher than originally anticipated.
3 Changes of circumstance affecting affordability
4 Debtors getting fed up of the payments

In my own practice I have a less than 5% failure rate, but this is not indicative of the market as a whole.

If you find that you have miscalculated your finances, then you should aproach your IP for advice. It may be possible to propose a variation for your payments to be reduced, and you should check the terms of your actual proposal (as possibly modified by creditors at the creditors meeting) to verify this.

Your IP will want to know which areas of expenditure you have found particularly tough, so that he/she can prepare a case for you to seek reduced payments to the creditors. This time, make absolutely sure that you provide for everything including car and house maintenance, medical expenses, and an overall provision for general contingencies which I would suggest at £50 per month. You can always save it if you don't need to spend it!

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

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

[neverending]

Natalie.B
I am three years into an IVA and am in the process of offering a full and final settlement so I will hopefully be out the other side soon .
In my opinion the biggest failure of IVAs is affordability.You must ensure that the "living"expenses that you put down do allow you to "live" and not just survive.Five years is an eternity on a tight,unrealistic budget.
Payment breaks are not an option unless your IP proposes a variation meeting and it is agreed by your creditors.You must be realistic in your proposal but at the same time disciplined..............no weekends away etc etc...........If you are lucky enough to be able to work overtime then this can be a real bonus to your life style even though you will have to pay 50% of it to your IVA.
Good Luck

[natalie.b]

Thank you everyone
coco- I am sorry that your IVA hasn't gone to plan, thank you for your advice
Melanie - As always your advice is excellent and I thank you.
neverending - Good luck with your final settlement.
Thank you to you all.