Our petrol alliowance is £450 per month (justified) and we've never had any issues with this. It sounds to me that your I&E is set up incorrectly if you have to borrow off family for basic needs. I would ask for a full review using realistic figures because 5 years is a long time to struggle.
I am with Hanover. They insisted I took out life insurance at the start of the IVA at the cost of £30 per month plus I had to pay a couple of hundred pounds up front fees. They never asked for my input at the time of the one year review. they simply demanded bank statements and payslips and then came back with a rather blunt letter saying that my IVA was increasing from £124 to £224 per month. Its a struggle as it is and I have sent a letter to them basically telling them to stuff it. I intend to stop the payments which they take via my debit card. My query is what happens next? Do I sit back and wait for one of the creditors to file for bankruptcy? They are payday loans, catalogues and credit cards. There is one with HMRC for tax credits which i fought with them about only to be told I was time barred. I have a feeling that perhaps I rushed into this and didn't pick a very good firm to do the IVA. Any suggestions anyone?
It is unlikely that your creditors will make you bankrupt. They seem like a really bad firm and if you want to stop payments then that would at least allow you a bit of time to sort out what you want to do.
Make sure that they don't take any more payments if that is what you want to do but it may mean reporting your card lost so you get another one and they cannot take any more money.
Do you have any assets such as a house that might need to be taken into account?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
No i rent a property and the land lord is more than happy to continue renting long term and is fully aware of the situation.
I have no there assets apart from my wife's and my car which are only worth about £1000 each.
Do I just ignore letters from creditors and hope for the best?
Thsi is something that really irritates me about IVA's. Whilst in practice it is a great way for peolple to reset their financial lives, realistically for most people it is a real struggle evry month and buts real stain or people.
I know it is not meant to be easy, and I for one am lucky to have extended family help me out with money on a regular basis, whether that is allowed or not I have no idea but I could not make it work without them. My second year review is coming up and my mortgage payment s went down £400 per month however I had to work away from home at my own expense over 200 miles each way which more than wiped out any savings. I have prove of this by letter from my employer but dreading how this is going to be handled by Creditfix.
Somthing dstrange mjst have gone on with your I&E calculations.
Your starting point is to query how they have arrived at the figures.
WEither:
a) you are overspending on non essential items
b) you have not completed your I&E form properly
c) your IP has calculated your net disposable income correctly.
If they are simply basing it on an increased income you need to explain that your expenditure has increased in line with that too, together with the life insurance costs.
If you can get them to look at this in detail properly and reduce the payments you should be able to continue on with the IVA.
I wouldn't stop making the payments and fail the IVA - speak to your IP firm and try to get this resolved first.
Last edited by Lisa Thomas on Tue May 24, 2016 11:40 am, edited 1 time in total.
I never received any forms etc from HANOVER. They wrote requesting bank statements and payslips. They then deducted our original overheads from that and came up with a figure that they said is surplus. They don't seem very professional and their letter was extremely blunt informing us of the increase. Nothing on it saying it could be appealed etc or even when the rise was to come into force. Just heres your new monthly payment plus you owe us another £300 that was surplus. Its like they are living on a different planet. This has really knocked me for six. We struggled to make sure we didn't miss a payment all year and were threatened by them that if we failed to pay the separate £30 life insurance it would be a breach of the IVA. Have so got the feeling we have been ripped of by this crowd of gangsters. Have cancelled the direct debit for the life insurance and the monthly debit on the card for the IVA. So sickened by trying to do the right thing so just going to let the creditors do their worst.
Thanks all for the advice
Bear in mind that the payment on the debit card will continue unless you report the card lost and get a new one. It's not the same as a DD from the bank.
Your creditors will continue to hound you once the IVA fails but you can speak to other companies and try to sort another one out. There are good companies out there.
The forum is here at anytime for support and friendship as we've all been there.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Sometimes dignity and respect is more important than money.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
But this could be a simple oversight/error which may be simple to sort, for the sake of one phone call/one letter and the OP says they are finding this stressful - I would think that failing the IVA and back to square one at risk of being pursued by creditors/recovery proceedings/ Bankruptcy etc will be just as stressful if not more.
Old conversation on the board linked to the necessity of an ip/company to be bullish at times.
When they get it wrong it just becomes bullying.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
Ips and iva companies at times have to be the authority figure to remind someone that they have a duty to cooperate.
An ip may therefore have to be bullish at times when dealing with an individual.
Some companies and ips just forget that and become bully's - therefore making people question whether they made the right decision and also whether they can tolerate behaviour that they would not normally accept from anyone else.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
In this particular case it sounds like rather than look at a detailed I&E form they have simply looked at the gross income figures. They may be a case of inexperience or sloppiness by the IP rather than bullying. The OP will not know if he doesn't at least try and speak to the IP firm and point out their error.
