struggling even to manage the IVA payments

[may07]

Im am on an IVA and approaching my first Annual Review. What does this process invilve and what information/documents will my supervisor require in order to conduct the review. Im actually really struggling even to manage the IVA payments. Thanks

[iva_squirrel]

Good evening May,

Welcome to the forum.

I am sorry to hear that yiu are struggling with your IVA payments.


It is standard that the IVA will require the IP to review each case on an annual basis. This will include a run through of the individual's income and expenditure with supporting evidence, similar to the fact finding exercise when setting up the IVA.

The purpose of this is to check whether monthly payment amounts need to be varied. It need not be a painful process, and many individuals find it useful to check in with the IP on a yearly basis.

Kind regards,


Julia




For more information about IVAs, please visit my website:
www.supersonicsquirrel.net

[MelanieGiles]

Hi May07

Your Supervisor will generally want to see wageslips for the last three months and a summary of your income and expenditure on a monthly basis. In my firm we send out a form showing last year's expenditure for you to update.

Is there any particular reason why you are struggling with the IVA payments? If this is becoming a problem, you do need to discuss this with your Supervisor, who may be able to propose a variation to your original IVA to accomodate any change in circumstances.

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

[ray_a]

Hi May

There is good advice here but is your relationship with your supervisor a good one>?

Are you finding the payment plan difficult because you are self employed?

Perhaps if you have a problem we might have some suggestions.

Good Luck

Ray

[may07]

This is a test I typed a reply it wouldnt let me post.

[may07]

Ok I seem to have resolved the posting problem.

Thank you very much for your responses. I just want to say how relieved I am to have found this site as until now Ive felt very alone in IVA land, with no one to talk to about it.

The reason Im struggling is because the budget wasnt very realistic in the first place. For example my food budget was cut to make the sums add up on paper but try telling that to teenagers with extremely healthy appetites. Added to which some of my monthly outgoings have increased over the year Ive been on IVA(e.g, gas and electricity). My salary has dropped a little due to having to repay a Tax Credit overpayment.

I dont have much of a relationship with my supervisor as such. Other than contact around the work to set up the IVA the only contact Ive had is when they mistakenly wrote to tell me Id missed 2 payments.

I might have been and might still be better off petitioning for bankrupcy. I think the only reason I didnt is because of the stigma and shame attached to it and the fact that I dont fully understand the long term ramifications. I dont know who to ask for advice as to whether bankrupcy is actually a better way forward.

I do have a few more questions.

1. If I fail to make payments what will happen to me?

2. I have received stuff in the post from 3 different firms offering me free consultation/advice as to whether IVA is really the best alternative for me. One claims that 96% of people on IVA are unsuitable for it. Another offers to help me be free of my IVA "in less than 4 months" Who are these firms? Are they bona fide? What's in it for them?

3. I may soon be made redundant. I would be entitled to statutory redundancy pay. In that event would I have to put all of it towards my IVA? I ask because at my age finding alternative employment might be difficult and a redundancy payment would buy me some time to try and find another job with similar pay. If I do have to put it towards my IVA does that money reduce the total and does it mean I can end the IVA earlier? Or do I still carry on for another 4 years like this with the redundancy payment becoming an additional amount on top of original agreed repayments?

Thank you very much for your help I really apprciate it!

May

[jane.l]

mmm sounds familiar, our IVA propsal figures were "re-jigged" This is the main reason why we are now going to petition for bankruptcy,

I kept telling them the figures for the mortgage, shopping, petrol etc, but they kept insisting on a lower figure, they just would not listen to me! I realised by adding the figures up against our income, that there was no way the IVA would work!

[ray_a]

If you haven't missed any IVA paymeents I would get in touch with your supervisor and see if you can vary the arrangement.
It would help your cause to let your supervisor have an amended budget.
I got a lot of letters from companies trying to offer and encouraging you to make a settlement. What they are doing is to remortgage your property and to offer the excess as a final settlement to your creditors. As regards your question they are paid on a commission basis if life cover is included or they charge you a fee for doing this. Given your situation I would look but come on here with the charges so as agroup we can look at it and come up with our thoughts. After all we are a like minded community in trying to deal with the implications of debt!


I understand that a lot of supervisors do not like this as it means they lose fees! In that sense you can't blame them as Accountants like everyone else need to earn a living.

However given your circumstances it is something to consider though as you might find the mortgage route may be preferable given that there is equity to release and the monthly cost may be lower than the current mortgage and IVA together.

The danger here is that if you lose your job it might be difficult to remortgage and you would be back to square one.

In addition if you did remortgage and lost your job you might find yourself in a problem with potential mortgage arrears.

Personally I think you should try and get a variation on the first year anniversary, look at the mortgage situation, and try and sort out your employmant position.

If you are made redundant would there be an associated package with it. ie redundancy settlement?

Tax Credits- This whole area is a complete mess! Nice one Gordan Brown and Inland Revenue. You should keep reviewing this area and if your income jobs then let them know immediately as the amount can be adjusted! I find talking on the phone helps a lot here!
Hope this helps May.

Please come back if I have answered anything properly and I am sure others will join in with their experiences.

Regards

Ray

[may07]

Once again I cant tell you what a relief it is to have found this site, the information and support.

I dont own a property. I am in rented accommodation. I dont own a car. I have no material assets. In fact the only thing I own is my debt![:D]

Its interesting to hear from you Jane that your budget was also a plan that worked on paper but not in reality.

I would get a statutory lump sum payment if I get made redundant. I was asking if I would have to pay all of this into the IVA? And if so would this reduce the overall repayable amount or be extra that I pay over and above the original IVA agreement?

I believe that there is a lower limit, as in a fixed sum which is the minimum which can be accepted as monthly IVA payment. If Im correct I am already only paying 10 pounds per month more than the minimum. So not much scope for variance there.

The bottom line is I simply dont have enough to live on. I am still juggling and struggling.

I appreciate that the supervisor relies on fees to make an income which is why I dont feel they can be unbiased in advising me.

Who could I talk through the details of my situation with? Who could give me independent advice as to whether bankrupcy is a better way forward? Also what is the procedure? Do I petition? Do I drop my IVA payments and let the supervisor petition? What does this all mean for the future?

Many thanks
May

[aguise]

Hi May
If you fail to make payments your iva will fail usually after three.Your option then would be to go bankrupt or return to a dmp. Sometimes the proposal states money to be kept for bankrupcy in the event of failure.
The stuff from the firms in the post tend to be for people with mortgages I think, I had a couple throw them away, whatever they do will cost.
If you are made redundant the money is not taken from you as it is for you to live until you get more employment.
Hope this helps I think it is right if not someone will correct me.

Ang

[ray_a]

Hi May

Firstly I would give your IP a call and I am sure he/she will be sympathetic.

It is important that you do this because they know the arrangement and can sort out the question of the lump sum.

What I am concerned about here is that you might need to live on some of the lump sum until you get employmet and it is crucial to protect this.

Don't be afraid as things can get sorted out.


Regards

Ray

[Adam Davies]

Hi May
Firstly any redundancy is for you to live on whilst you seek employment.You can,if you want to ,offer it as a lump sum to finish your IVA early.
The companies that offer to help you cannot,unless they have a magic wand and know something that we do not!!!.They will look to remortgage your property but as you have said this is of no interest to you.
You need to speak with your IP and complete a realistic income and expenditure form,if you are finding the payments increasingly difficult then you still have the option of bankruptcy and as you have no assets then you may well be best to consider this,but only if you are sure that an IVA is not for you.
regards


Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[ray_a]

Just curious, but I knew someone who had a serious debt problem a few years ago and I suggested an IVA even though she had no property. She felt that she wanted to pay something back to her creditors.

She spoke to a Lawyer and told her to go bankrupt. After 10 monthe she was discharged. It would appear that She is in very much the same position as me in that She can not get credit and has the same type of bank accounts as I do.

Is bankruptcy not a bad idea after all with the present rules?

[scaredkez]

ray i went Br in april and its the best thing i ever done, i tried my best with my creditors to pay as much back as possible but they threw so many obstacles in the way, i have a fresh start don't want credit, have a maestro card with think banking ok costs 12.50 per month, and my life is now back on track.
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[ray_a]

Hi Scaredkez

It will be interesting to see how you get on with it and in many ways you might be better off in 6 years time than those struggling with IVA's and Debt Management schemes.

In a way that is disturbing!!!!

Regards

Ray