really cannot afford to pay more

[juliaj]

Hi, I have an IVA at the moment. I was told that I would be paying a fixed amount of 320 per mth for 5 years. Now they are saying that they are going to put it up. I puttinh daughter through college and really cannot afford to pay more. thanks Julia

[aguise]

Hi Juliaj and welcome
May I ask their reason for increasing the payment have you had a rise or increase in income?

Ang

Please visit my blog at http://aguise.blogs.iva.co.uk/

[sonyse2t5]

HI,
I think the increase you pay are due to you getting extra income from the day of your IVA? Not including inflation increase.Some additional incomes do go to the IP -overtime etc.

[MelanieGiles]

Julia

Ask your IP to justify why they feel you can afford to pay more. They will have based their opinion upon figures presented by yourself.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Adam Davies]

Hi
There is no fixed payments in an IVA and you have been advised incorrectly.Your payments are based on your disposible income and if this increases so do your payments[unless you have incurred extra costs]
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

[sanna]

The same thing has just happened to my husband and I, We have been paying £400 per month for the past two years and now it has gone up to £569 per month. At the moment going bankrupt is looking like the better option, this just seems never ending!! Sue

[OPTIMIST12]

Sanna -

Thats a big increase - can you say what explanation was given to you for it?

I recently had a payrise and my monthly payment was increased to reflect this. I am now assuming that - hopefully - my monthly payment WONT go up again when I have my annual review - as I wont have any further rises before then and will no doubt have higher train fares etc to pay out.

Having said that it was set out quite clearly in my proposal and correspondence from my IVA company that payments would increase in line with increased income. Its a pity if people are led to believe that their payments will remain static over the 5 years - this is bound to set things off on the wrong foot.

[Skippy]

I understand that the idea of an IVA is to repay as much as you can to creditors, but maybe all IVAs should state that no pay rise under 5% or so will be taken as this is basic cost of living. Also, maybe only a percentage of pay rises over the 5% should be taken - this would increase the return to creditors, but also give the person in the IVA motivation to earn more, and stick with the IVA for the duration.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[R1chard]

i had a payrise but after speaking with my IP and shwoing him my extra costs of living they decided not to increase my payments.

58 PAYMENTS TO GO..

[OPTIMIST12]

It does all seem to vary from case to case. I am lucky in that - for the time being at least - I receive pretty regular overtime which - under the 50% clause - gives me a chance to increase my contributions (important with a Minimum Dividend modification) AND on the other hand to give me some extra cash at the end of the month.

Does anyone know where you stand if you take on a second (part-time) job? Are you allowed to keep 50% as "Overtime" or would all of the money earned have to be paid into the IVA? If at any time in the future my overtime ends I would certainly look into this.

[R1chard]

i was thinking about this aswell.

doing a couple of nights per week to bump up my income, however - would it all be taken and if so thier wouldnt be any point.

58 PAYMENTS TO GO..

[Adam Davies]

Hi
I would think that additional jobs would count as a "pay rise " and all the money,less costs,would have to go into the IVA.
However like most things in an IVA it will down to how the IP interprets it.
It's sad to see people entering into an IVA believing that the payments are fixed and wonder if this is down to the way that they have been "sold" the benefit of an IVA by the provider
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

[OPTIMIST12]

Andy -

I think you are probably right about any second job money ALL going into an IVA. Still - its worth bearing in mind for Year 5 of an IVA when the Minimum Dividend issue may come into play and any shortfall needs making up. I think at that stage I would rather - if necessary - take an extra job for nothing - so to speak - to ensure that the IVA is concluded in the scheduled 60 months.

[Skippy]

I would rather make a couple of extra payments at the end of the IVA than effectively work for nothing. It's bad enough having one job let alone a second one that you wouldn't get anything for. I was an Avon rep before I went into my IVA but gave it up as I couldn't see the point.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[OPTIMIST12]

Hi Skippy -

I fully appreciate your point of view but - for me at least - the thing that is (I hope!!!) going to see me through to a successful completion of my IVA is knowing that from the date of my 60th payment I am going to be free of debt. I already have that date (its not till 2012 by the way!!!) fixed in my brain and I am going to do everything I can to ensure that my IVA concludes on time. Only time will tell if I make it!!!

I know it sounds loopy to suggest - effectively - working for nothing but I must admit I would rather do that than reach what I thought was the end of the road and then receive a message from my IP saying - "Sorry - but you are £XXXX short of your total to cover Minimum Dividend and fees and you will need to make another ? payments". On the other hand you are absolutely right - it IS mad to work for no return!!!! I am sure most people would agree!!!!