IVA REVIEWS

[markss]

Can any one advise what the IP looks at when reviweing your IVA. do they need to see all bank statements or just payslips and soa? also is it possible to keep a store card with credit limit under £500 i have a burton card £250 limit which i use to buy work clothes. if the IP agrees has any one else been allowed to keep such cards.

[melanie.n]

Unfortunately you would not be able to keep out a storecard, it has to be included on your list of creditors along with all your other creditors. An option for you is to take out one of the 'pre paid credit cards' - on entering a DMP or IVA you would have a cloting 'allowance' load this amount onto your pre paid credit card each month and the money will be avavilable as and when you need to purchase clothes. If thinking about a pre padi card have a look on www.moneysupermarket.com and see what is on offer.
Hope this helps
Melanie.m

[ianmillington]

Basically there is a level of due diligence all IPs would need to meet.
We would normally expect to see, amongst other things, all bank etc Statements

As Melanie says a store or credit card is absolutely taboo. If the IP didn't put a credit embargo in the proposal it would be imposed by the creditors. Also the Nominee has a legal duty to send a copy of the proposal to all creditors of whom he is aware so unless you hid the existence of the card (which then renders your proposal misleading) the card company would find out about it anyway.

Melanies suggested solution certainly looks worth investigating.

Ian

[aguise]

Hi I think this can vary between Ip's. Mine just wants wage slips for six months and a new I and E to show changes and proof of any rises in expenditure.

Ang

[ianmillington]

I believe it's necessary to review a clients bank statements otherwise I would struggle to demonstrate that I have properly scrutinised the income and expenditure. On that basis I wouldn't really be able to show that the client can actually afford the contributions and accordingly it's impossible to demonstrate that we've given best advice.

The new BBA protocol envisages that we will have sight of a clients bank statements.

Hope this clarifies

Ian

[caraf]

Can you help then.
On the I&E that was done for me by my advisor, the gas, electric and water is lumped together as one cost and is higher than the actual cost, the figues where moved around by my IVA company as they looked too low. What I dont want is increased payments because of the figures and the I&E they did.

[kiana84]

Hi
I've been in my IVA for just under two years and I just have to send wage slips, I've never been asked for any bank statements.
Also when I applied for my IVA I had an Argos store card which had a £700 limit on it, I think I owed around £250 on it at the time. I asked my IP to include this in my IVA but they wouldn't saying the amount was to small. I still have this card and use it on a regular basis. My IP is aware of it and nothing has ever been said.
After reading Melanie and Ian's replys I'm now wondering why I've been allowed to keep mine?

[louisa.s]

When we had our first review our IP asked for 6 months payslips and a new I&E (if applicable). We then had to submit evidence of any significantly increased I&E (like my car insurance that shot up from £45 to £75) but at no point did we have to submit our bank statements.

To be honest our I&E hadn't really changed and didn't really need to change. I suspect if all your figures on your I&E changed then IPs may need to see your bank statements as evidence like when you have your first meeting.

Either go wwith a prepaid credit card or just have a separate bank account like Co-op cashminder or Halifax Easycash and transfer your clothing budget into that for your work clothes!

[ianmillington]

It is also fair to say that the pressures on IPs to demonstrate that they've given best advice and haven't put someone they shouldn't into an IVA is somewhat greater than it was a couple of years ago, which may account for the disparity. For example the current SIP3 (imposed by all the regulators) effective April 2007 states:

"Before recommending an IVA to a debtor, the member should be
reasonably satisfied, on the basis of an assessment of the debtor’s income from
all declared sources and his stated expenditure needs, that the debtor has
sufficient income to sustain the payments proposed under the IVA."

My conclusion is that I would need to see the bank statements before I could say I've properly verified this, but others may disagree.

To kiana84 - I am surprised at the response you say you were given by your IP. IMHO no creditor is too small to include as you must include them all. If you were given permission by your IP then I suppose you are covered against breach of the proposal. Is the card issuer aware that you are in an IVA?

Hope this helps

Ian

[aguise]

Hi Kian I had argos with a similar debt and it was included and other debts smaller.

Ang

[ianmillington]

To caraf

Would I be right in thinking, given the forthcoming increase in fuel bills, that the issue you have referred to will probably go away?

[caraf]

Hi ianmillington
Not yet anyway because I just pay a fixed sum every month which hasnt increased yet. My IP company put down 120.00 a month for gas electric and water and my actual amounts at the moment are
gas 16 Electric 42 and water 19 ??

[caraf]

now if my monthly amounts doesnt change, when it comes it my review later this year do I put down the £77 actual cost or do i put down the 120.00 that was on the orginal I&E done by my advisor. and what if they ask for proof

[ianmillington]

Hi caraf

How long have you been in your arrangement and have you had a review yet?

Presumably when you gave them the figures in the first place you gave them the correct ones? If that is the case then I suspect they might have a problem changing their approach. Certainly I wouldn't fancy arguing you've underpaid if I were them.

To answer your second post, for future payments I would suggest that you tell them you anticipate that your fuel bill is likely to go up to £120 per month, which it probably will.

Ian

[aguise]

Hi caraf you do well mine are more than that and they dont include water. I would wait and see if the prices rise. Lots of these things fluctuate and if paying a monthly debit it varies depending on time of year my joint bill for both was just over £400 for one quarter, I would wait and see what they are over the year as they are rising quite a lot.

Ang