Hi all,
I would really appreciate some guidance as I am going to see about an iva. I've gone through the Cccs budget calculator and its recommends an iva.
Here's my situation:-
After being screwed by both our ex's, both being single parents for years and paying for fertility treatment my partner and I are in a lot of debt (£35,000 to be more precise).
We have a fairly decent income (£60,000 per annum) so we have been able to cover debts with more credit but its only growing.
I had a baby in December (smiley face) and am now on maternity. My partner is trying to work overtime but to be honest we are drowning and my wage drops again this month.
We have a mortgage for a house in serious negative equity which we rent out because its too small for our family and we rent a house.
Honestly we'd love rid of the house too, it'll never increase in value to match the mortgage.
What I want to know is how will they work out my wage for the iva as it is changing throughout my maternity and I have agreed reduced hours for six months when I return to work. Also, after so much pain to get our darling son the thought of working my store manager job full time again makes me feel ill. I want to work but maybe 3 or 4 days a week so can I chose to reduce hours and/or change jobs when in the iva?
Thank u in advance for any help u can offer.
Welcome Trying2cope. Firstly, congratulations on your little one. www.iva.com is a good starting point to find out solutions and to enable you to choose an Insolvency Practioner. But please remember, one size doesn't fit all. Each persons IVA is different to the next. Melanie Giles (who posts on this forum) comes particularly well recommended. But well done for realising the pickme your in and that you are now trying to sort it.
Last edited by TheArtist on Sat Mar 16, 2013 11:58 am, edited 1 time in total.
Completed IVA - August 2012 pheeeeeeeeeew
Only my opinion - Nothing More Nothing Less
When I started my IVA I made sure that the company fully understood and made provision for future expenditures. You have to consider that you will have childcare and nursery fees etc in the next 5 years and this all needs to be made clear.
I'm not with Mel but from the four years I have been looking at this site, she seems to be the most sensible and pragmatic by a country mile which I think is what you need to help get you through this particular journey.
I would have thought so. My advice would be to call one of the companies and discuss with them. I deliberated for ages before plucking up the courage which in hindsight was a bad decision. The relief when I realised there was a way forward was like a ten ton weight being lifted.
I was allowed everything I asked for. Have been lucky to get the odd bonus of which I keep half. The only thing I miss are the holidays but knowing this time next year I will won't have a four figure sum to pay out every month I will be able to make up for lost time!!
Payments into an IVA can be staggered to allow for changes, such as in your situation.
You could consider handing the property back if it is a burden and any shortfall will be included in any IVA proposal
Chat with several companies/experts and explore all options
Hi -- you do get allowances for most things like haircuts (or polish in my case), clothes, repairs (small but welcome) etc. A good IP can build in terms regarding fluctuations in earnings that are known about. I think Mel has recently drafted a proposal around a clients current pregnancy, so well worth having a word with her.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Hey foggy and andy,
Great thanks for this. Andy do u mean the negative equity would be added to our debt? We're talking about 50,000. It's value has dropped like a stone!
I have just started an IVA and my payment is set to change over the first couple of years due to a pay drop then payments for endowments stopping, and it was accepted with no questions asked. Good luck with your journey x
I know I am a good person, I just need to start believing it
So if I chose not to go back to my job and do something that earns less money that's ok? They can't make me pay more because I have the potential to earn more?
As long as you have enough income to make the IVA viable you can change jobs. But remember, from the creditors point of view, when they "sign up" they are expecting a certain return. If your incomes drops too far they might extend the IVA to make up the shortfall as an alternative to failing it.
There is also a certain monthly figure below which the IVA becomes to expensive to operate (generally around £150).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
