rising costs etc

[kah]

A general query - financially I'm sure a lot of us in IVAs are now finding that the cost of living is rising a lot more quickly than our income. When I started my IVA travel was costing me £75 a month - it's not in excess of £100 (public transport - no choice). Mortgage costs have risen - fuel to heat the house - electricity - food. The only spare money in my arrangement was £15 a month for "entertainment". My pay has risen by £28 a month since 2 years ago when I began the IVA. The sums are beginning to really not work out.
My question is general rather than personal - what happens in a time of recession? Do all our IVAs fail unless we can significantly increase our incomes ?

[Adam Davies]

Hi
I think creditors have realised the problems wth regard to rising costs and no spare money in an IVA and have proposed under the new protocol,due to start soon,that IPs will be allowed to agree a reduction in payments by upto 15% without creditor meetings.This only relates to recent IVAs so anyone finding it unmanageable now will need to speak with their own IP and if needed have a variation meeting arranged to reduce payments
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

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

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

[MelanieGiles]

Don't forget that creditor staff and IPs are also suffering from increased pricing, so they ought to understand when you tell them you are struggling.

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

[kah]

Thank you for the replies - as usual sane and so helpful when the panic starts setting in! I'm approaching my annual review (year 2) and I'll prepare my real costs very, very carefully - and look for a discussion with my IP. Thank you

[Emily]

I think the sudden surge in living cost took everyone by surprise. The cost is outstripping inflation 2.1% or 4.5%RPI.

Even if a 15% reduce payment is granted by Creditors in the future the IVA would have to be extended to cover the 15% lost from the original dividends so it is a case of paying the IVA longer to accomodate the rising cost unless creditors will take less overall?