Hi all
It's been a while since I wrote here. The IVA forum has been most helpful in the process of obtaining an IVA. However I have now run into some difficulties as my original IVA's estimated expenses weren't realistic to begin with. The groceries for instance, I had given an estimated figure that is less than half of the realistic value. It was a blind guess as this is what it used to be many moons ago. And now all of a sudden I find myself £100 or more into my overdraft each month.
I don't want my IVA to fail. Then again as I have absolutely no assets to my name I want have much to lose. If it comes to a stage where I simply cannot keep afloat with my IVA repayments, can I apply for bankruptcy? What evidence must I produce in court for the Bankruptcy to be viable and recognised by the Judge?
My IP btw says that the repayment amount cannot be reduced.
You should not even have an overdraft facility in an IVA, let alone be using it!
If you cannot manage your payments,then if you don't pay for 3 months, then you are in breach of your IVA and it will fail. As soon as it does you can apply for bankruptcy. You would just need the failure notice for court.
Why does your IP say the payments cannot be reduced?
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
hello icebrick and sorry to hear youre in problems
please give your ip a call-tell them youre in trouble they need to do a new income and expenditure with you. please dont worry youve realised you need more help.
dont use your overdraft hun-you are breaching your iva by using it.
please use us to support you and call in the morning and tell them you need help x
I am with Grant Thornton. They seem very reputed but they seem very rigid in their approach. They don't accept that the rent could go up if I move house and they are very ignorant to my requests to revise the monthly IVA contribution. They have simply said that nothing can be done until my first review which is a year from the date I applied for my IVA. If it's a year shouldn't it be a year from the date my first contribution was date?
The reason why I used the overdraft is because I was told that I can have a £500 authorised overdraft and that would be within the agreement.
If I get a better job I would like to rent a one bedroom flat rather than renting a room in someone else's place. Would this be classed as unreasonable within the IVA? And since I use the bus, will considering buying and maintaining an economical car be classed just as unreasonable within the IVA? Reason why I ask is because at the moment, I am living on bare essentials.
My IVA is £280 in case you are wondering why my IP refused to cut it down further. My monthly income on certain months have been over what I had declared due to overtime etc and when I mentioned this to my IP he/she (as I have many individuals dealing with my IVA) said that it'll all be assessed in July upon completing a year on the agreement. I don't have any money to opt for a BR right now and my IP said that this cost (should a BR occur) isn't covered within the agreement.
hi icebrick
are you actually able to talk to your ip hun or are you getting the brickwall from call centre staff ?
you must tell them youre in danger of iva faliure.
please get rid of your overdraft-it really is defeating the object of the iva.
im only saying that cos i care
get yourself back on track hun
put the overdraft in the bin and call your ip in the morning and if you are upset or need help we're here x
I must admit that this is the first time I have ever heard of an overdraft being allowed in an IVA!
As regards your payments, unless something is written into your proposal, I think your IP is being a bit inflexible not listening to your concerns.
As regards BR, if you defaulted on your payments, you could save this money to pay for the court fees. They cost £495.
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 am sure that your IP and his staff will be happy to review your figures if you feel that they were set unduly high from the outset. Sometimes it can be difficult to budget, when you have always relied upon credit to meet shortfalls in the past, and that it why the review process is important and for your benefit as well as your IP and creditors.
I would give them another try, and why not ask to speak to a manager or even your IP themselves.
Firstly thank you so much being so supportive and helpful. I am going to drop in an email to the person assigned to my case. I am also going to request that I be put in direct communication with my IP if possible.
I have a few quick questions though and I am hoping you will be able to answer me better.
I have been told that Banks almost never force a BR on anyone as it costs them money to do it at their end. Rather I am likely to see a CCJ (really don't know what that is) but this is what I've heard.
If I do manage to get a better future salary will renting a flat of my own and getting an inexpensive car be acceptabe within the IVA (as this raises my outgoings significantly)? I do have a job interview coming up but it is still a few weeks away.
Banks are generally unlikely to petition for bankruptcy against a consumer debtor, and would rather have the opportunity to pursue you directly if the IVA is to fail.
You will need to ask your IP the second question, as they have detailed knowledge of your case which I do not.
You must discuss all of your current problems and future ideas with your Supervisor (IP) in order to esrtablish a good and solid path for your IVA to continue for its duration. Irf you have any problems with getting hold of him/her let me know and I will ensure contact as I know the head of the department running GT's IVAs. Good luck and let us know how you get on.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
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
If my IP doesn't manage to reduce my monthly contributions, will that be sufficient grounds for going bankrupt? Please don't get me wrong. I am not looking for a way out of the IVA as I can't imagine how devastating a BR would be on my entire future. But given my current situation I would like to know what my options are.
