My Partner is Pregnant

[james.c]

Hi

I have been in an IVA since Jan 2007, everything going well.

My Partner as got pregnant, overjoyed with it. How ever my expenduire is based on just me. The baby will be born in March 2008.

What are the chances of my monthly payment for IVA been reduced before the baby is born, to pay for essentails for the baby ? and also once the baby is born their is clothing, food nappies etc for the baby will this be taken in to account any my IVA payment reduced?

[pm.e]

Hello,

My understanding is that normally every 12 months your income and expenditure is reviewed by your IP.

I am not sure if he will agree to the reduction in payments before this (or even then?), and a lot depends upon how much dividend is expected in the IVA.

Contact your IP and ask straightaway, also check your terms and conditions of your IVA.

Hope this helps.

[MelanieGiles]

Hi james and congratulations on the great news!

You will need to discuss this with your IP, who will want to understand the effect that this is going to have on your finances, and what contribution your partner will be making to the expenditure. I would get your heads together to pool your finances, and see whether any adjustment is really necessary. If it is then put an alternative proposal to your supervisor to see if they will be prepared to formally vary your arrangement - which can only be done with creditor agreement at a newly convened creditors meeting.

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

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

[iva_squirrel]

Good evening James and congratulations on the great news.


It is inevitable for some people that their circumstances will change over the five year period of the IVA. It is normally preferable that the IVA plays out as originally planned, but sometime exceptions do occur.

One of the very common reasons is change in household circumstances such as new children. I suggest that you discuss this with your IP as soon as you can. It sounds like it is necessary to make a variation to the IVA and your IP has the ability to hold a variation meeting with the creditors.


Kind regards,

Julia Simavi

Shortlisted with special commendation for Debt Counsellor of the Year by Credit Today Awards 2007

View my profile:
http://www.supersonicsquirrel.net/julia ... rofile.asp

Visit my website:
http://www.supersonicsquirrel.net

Credit Today Awards 2007 http://www.credittoday.co.uk/awards/winners.htm

[Oliver]

Congratulations. Discuss this with your IP but don't forget that you will now be entitled to Child benefit and potential Tax Credits also.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[kit]

I read comments relating to pregnancy and babies with interest, because me and my partner have decided unless an accident happens we will probably wait until after the IVA before we have kids.

A lot of the comments say 'Can you still make the same contributions?' and 'It is normally preferable that the IVA plays out as originally planned' and I'm sorry but I honestly don't get this.

Most budgets in IVAs are very strict, so even if a new mum was going to go back to work full time almost straight after having a baby - you can't help but incur additional expenses for a baby (both before and after a baby is born) and I can't comprehend how anyone could cope unless they have great Contigency Funds and/or a good supporting family who can look have the new baby when the mum goes back to work.

As for me, due to the job I do (working an extremely stressful and difficult job in a 24/7 environment) I would need at least 9 months off and definetly wouldn't be able to go back full time - child care costs would cost a forture and I don't know any nurseries where you can take your baby at 5.30am in the morning before you start work at 6am or taking the baby at 7.30pm before you start a night shift at 8pm. Unfortunately we don't have any family living local who could help and wouldn't want our baby to go to a nursery at just a few months old (no offence to anyone else). Our shifts always cross over too so we couldn't rely that. Most of my colleagues who have had babies in the last year have come back less than part time if at all and some of them have come back and then gone off sick with the stress of coming back to a very stressful and demanding job and leaving a little baby at home or at a nursery and they are all miserable - I wouldn't want this to happen to me.

I am 27 yrs old and my partner is 32 yrs old and I can't wait to have a baby but just can't see how we could cope. When we set up the IVA we did mention that obviously at our ages this may happen within the 5 yrs and what would happen if it did and we were verbally told contributions would be adjusted accordingly and not to worry at all about it as you shouldn't not go into the IVA just in case you did get pregnant. I have heard you can extend contributions for another year - I hate this idea - we were never advised this was an option and 5 yrs is certainly long and stressful enough.

We currently pay just over a thousand pound per month at about 50p in the pound.
Kit

[kit]

Sorry also meant to add at the end that I hope I haven't offended anyone with my comments - it's just I've previously been told I shouldn't put having a baby on hold - but just can't see how it can happen and can't help thinking about it!
Kit

[Adam Davies]

Hi Kit
Most IVAs will be varied if a pregnancy dictates and all IVAs are different.If the women only worked a few hours per week and becomes pregnant then sometimes the original payments can be met by the husband working overtime etc and a variation meeting would not be needed,so in essence the IVA will be played out as per the original proposal.
Good luck with your own plans
regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[kit]

Hi Andy

Thanks for that - just had another thought. A close friend of mine has just returned from maternity leave (baby 9 months old) and has found out she is 3 months pregnant (not planned - a complete accident). This made me think about my situation. If it was agreed to extend the IVA for one further year (which was complete news to me until I came on this website - I thought 5 yrs then that's it) and you got caught pregnant again - what would happen? Obviously I wouldn't plan for this to happen, but it just made me think. My friend now says she will have to give up work completely because childcare for x2 babies will cost the same as what she earns - which would probably be the same for someone like me - so would it just have to be finished - or could in theory it keep going on and on and on?
Thanks, Kit

[Adam Davies]

Hi
Well ultimately your IP could fail the IVA but because of the circumstances I would doubt that they would want to.
There are several possibilities.
1]If it was in the final year of the IVA then your IP could arrange a variation meeting and ask your creditors to accept payments already made as full and final and conclude your IVA.
2]Your IP could extend the IVA even further with creditors approval.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[kit]

Hi
Sorry I have another question. This is because I have just been sat holding my 6 month old baby god daugther and I just can't help thinking about babies!!

My question is, as stated above, we made it clear to our IP that we wanted a family and at our ages it may happen in this five year period, we were never ever told that the terms of the agreement may need to be changed to add one further year - and this isn't in our documentation either. Even if your payments on the final year or so do go down (say from £1,100 to £600) could you refuse to make payments for a 6th year based on the fact that you were never advised this could happen, and in deed if we had, we would have definetely looked more into bankruptcy.

I do an extremely demanding and stressful job that seems to take my whole life up (24/7 job) and we had always envisaged I would go slightly part time after the IVA with or without kids so adding another year to it just fills me with dread.

[Adam Davies]

Hi
You can refuse at anytime to pay into your IVA and to any variation proposal but you then run the risk of your IVA failing. The extra year is just a possibility,it may be that your creditors would just agree to reduced payments for the remainder of your IVA or until/if you go back to work.
There is no set procedure,you will have to speak with your IP at the time and see what they propose.
regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[james.c]

Having read peoples comments on this I have looked in to my IVA more closley.

Since it started in January 2007 i have had an annual inflation pay rise of about 3% which in pound notes is about £50 net extra a month, so at my review in Januray 2008 i am going to ask my to put to my creditors that is they dont increase my monthly payment due to the annual pay rise i will not ask them to consider lowering the payment as I will have a baby. I think this is fair as i will still be sticking to what i originally agreed with them, what do you think?

Second point i have thought well with a baby coming along, the baby takes priority over my creditiors, should I go BR, but belive i will still have a monthly payment for 3 years to pay, so overall its only going to save me a year in payments, but i also have my principles, that my creditors made an agreement that I pay them £349 a month for 5 years which stopped me going br in the first place

[MelanieGiles]

Guys

There are things in life that are more important than paying debts - and having a much longed for family must surely fit into that category. Kit is absolutely correct, having a baby is going to affect your budgeting in some shape or format, as child benefit and tax credits do not cover the additional costs involved. If the IVA can be varied downwards, then this is worse a try, but the thought of couples putting their family planning on hold due to the existence of an IVA is slightly alarming, and something which ought to be thought through at the beginning.

Baby vs bankruptcy? I don't really think that you can compare the two.

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

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

[james.c]

hello Melanie

Please don think i am knocking you, as i have read alot on the site that you have wrote and helped people and think your advice is outstanding and brilliant, but i do feel you have not answered my points, sorry for been so direct i am just worried about what to do for the best for everyone concerned