really worried that I wont be able to move out

[joanna.f]

I have an IVA with payplan which I started early this year. I asked them before I signed anything whether I could reduce the amount I pay later in the year as I was planning on moving out of my parents home and in with my boyfriend. I have now reached that time and they say that they wont reduce as it is something I have decided to do and not an unforeseen expenditure. Now I am really worried that I wont be able to afford to move out (I am nearly 29 yrs old) until I complete the IVA in 5 years time. Are they correct in saying that my payments wont be reduced if I decide to make a change to my expenditure & move out? I couldn't afford to pay the rent & bills unless they reduce.
(For info I pay £332 per month into my IVA)
Thanks

[MelanieGiles]

Hi Joanna and welcome to the forum

Sounds like you need to go back to the person who said it would be OK for you to move and thus lower your expenditure at the time the IVA was proposed. If you knew this was likely to happen, then this should have been provided for under the terms of your arrangement.

Is your partner already covering these bills, and if so would he need such a substantial contribution from you? You should not put your life on hold for the sake of the IVA, when there are other solutions available to you to deal with your debts such as bankruptcy or a DMP.

[joanna.f]

I emailed them back and they have now confirmed that I can reduce my payments by 15% without the creditors being involved as it was written into my contract as a future modification. The first woman who advised me must've been confused!

They also just called to say if I reduce my payments and miss one payment next month (so I can afford the deposit for my flat) then it is tagged on to the end of my contract. This means I can't miss any more payments until I finish my IVA. This sounds a little scary as I don't know whether I might need to miss a payment in the future.

I'm so worried & stressed about this, I don't want to make the wrong decision!

[rayb]

Hi Joanna,

You can miss 3 payments before you fail your IVA so do not worry to much

[joanna.f]

They said I cant arrange to miss any payments (like if I had an unforeseen expenditure one month). I don't want to miss any by just not paying them. I don't want to run the risk of my IVA failing and having to return to a DMP. I didn't like the creditors calling me all the time.

[rayb]

Joanna,

They are just trying to scare you. You can miss 3 payments before they fail your IVA. See your Terms and Conditions.

[MelanieGiles]

But you should not be planning to miss payments - this should only occur in exceptional circumstances, and you should try to make up the payments along the way to avoid having arrears at the end.

[joanna.f]

They said I cant make up the arrears, it's all tagged on at the end.
I wanted to miss one payment to afford a deposit. If I dont miss a payment I cant afford to move out.
She said there is a figure that has been agreed with the creditors that has to be paid. If I get a pay rise and my amount to my IVA goes up, I thought I could then make up the money I missed and have the secuirty of free months again. She said I couldn't do this and if I earn more the creditors will just get more money.

[MelanieGiles]

Of course you can make up the arrears if you want to increase your payments over the next few months! What silly advice you have been given on that point, but you should not rely on having the leeway to miss payments.

[joanna.f]

I certainly don't want to rely on being able to miss payments, and I wouldn't do it without a damn good reason. I just like to know they're there in case I am made redundant from my job or something. I'd like to be able to have the security of a fall-back.
I seem to be getting mixed advice from them and I can only speak to them during my working hours as they close by the time I'm home. Its a bit difficult to discuss it at work too.
I just feel so depressed about this, and I know it's my fault I got into this debt, but some days I cant see a way out.

[MelanieGiles]

Try and speak to the IP directly - as there is nothing better than advice from the horse's mouth! Which firm are you with?

[joanna.f]

Payplan

[MelanieGiles]

They are a big company, and ought to understand your current struggle. Why not ask for a telephone appointment with the IP to see if he is prepared to discuss this with you - I certainly would if you were a client of mine to see if there is someway you can work on this together.