My IVA began in Sept2013. I had moved back home to my parent’s after splitting up with my partner and am now a single parent to my 2 year old child. I had around £21k in credit card, loans etc. After visiting my CAB we agreed that an IVA was the best way for me to go. My intention when my IVA was being drawn up was to move out of my parent’s house to my own private rented accommodation. My expenditure profile on commencement, and yearly review in Sept 2014, of my IVA has profiled my spend as if I were to have moved out and been paying all the bills on my own (I have no help coming from elsewhere). My IVA practitioner was aware on commencement that these were projected costs (I sent in examples of rental properties in my area and how much they cost to attribute the rental fees I was quoting in my Expenditure). However, for family reasons and basically knowing that my daughter and I will be next to penniless if we move out and if I don’t get a promotion in work soon, I am still living in my parents’ home. I have incurred various expenses through one thing and another for the last year and a half, but I want to be honest and do feel that I could be paying more towards my IVA when I’m still living in my parents’. At the same time, my car is on its last legs and I am beginning to save for a new one, as well as saving to basically buy everything I will need to furnish a house when I am finally able to afford to move into my own place.My question is, should I get in touch with my Practitioner now to advise them of the situation? Or do I wait to my review?
You should really notify your IP now and do a new I&E if you are not moving out. This will avoid major arrears but will likely lead to an uplift as whatever you are paying your parents is almost certainly less than renting yourself. I am sure the IP will be understanding but do not let it go on.
I'm going to give them a call and let them know what's happening. I'm worried that they might not let me save to buy myself a new car and save for moving out of parent's house. I currently pay £100 to my IVA each month and I reckon I could stretch this now to £200/£250 so surely it's in their interests that I'm being honest and offering to pay more is it? Also, if my situation were to change again in a year or so and I get my own place - will they reduce payments to whatever I can afford again?
Just a thought but are your parents renting you the room in accordance with the government rent a room tax free scheme ? i.e. You're not living there for free ! A lot of places charge rent and bills all in as a monthly fee which may be what you're laying which won't be far different from your original projections, given you may have had housing assistance etc which you're now not getting ?
My Blog details, the route I took before IVA, how I choose my firm, equity release advice (year 4-5), challenging the CRA's keeping IVA on credit file once gone from insolvency register
IVA ended August 2015. Would recommend McCambridge Duffy
I have no experience of this, I'm sure an IP or a well versed case worker could answer this,
If your financial situation improves as per your case may demonstrate I can't imagine any creditor having a problem with that due to a change in I&E and them getting more.
But what if in a years time you were able to get a place to rent and now your I&E increased and you were going to be paying less in to the IVA per month ? (Less than the parents arrangements) but back to original forecast arrangements ?
Would an IVA company look at it in isolation and say, "look, you made sacrifices to service your IVA, you can't expect your creditors to fund you getting your own place again" or would they say, "yeah that's no problem, it is inline with the original IVA terms so all happy", or would they say, "okay, no problem, but we will extend your IVA for a further year ?"
I'd be really interested to know how this is handled in general given that the changes in surplus would likely be more than the % that doesn't require creditors agreement! both on the them getting more side,many the them getting less side ?
Incidentally,my your agreement will say what a creditors meeting costs,mim guessing if it was a big change and a meeting required, if that costs for example £500 and then when your revert back, another creditors meeting for £500 in a years time, then the creditors would not have actually received much extra ? Just the IP/IVA firm ?
What would be ideal IMHO would be if the amount you pay your parents for rent+bills was within 15% or whatever the flexible movement is within your IVA then it should all be easy ! It could work out that your parents have given you a rent break because things were tight and for the reaming period from now on you're paying rent+bills + arrears each month to your folks! what they do with that rental money is entirely up to them! they may even decide to buy a new car for themselves and put you on the insurance, just asking you to contribute to the extra insurance cost [8D]
situations are so fluid,I do wonder how a proposal is written to capture every eventuality !?
My Blog details, the route I took before IVA, how I choose my firm, equity release advice (year 4-5), challenging the CRA's keeping IVA on credit file once gone from insolvency register
IVA ended August 2015. Would recommend McCambridge Duffy
Feel rubbish for saying this but the ability to save is not the first priority - repaying the debt is and that will be the IP's priority.
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.
It really is a very fluid situation - in a year's time I hope to have saved enough for a very modest used car (bearing in mind it will have to serve me the next four years of my six year IVA term) and enough to move out. My parents have no problem with me staying but realistically my daughter and I need our own place with our own space to live. If I were to not be able to save and had to move out in a year's time then I would almost certainly have to break the terms of my IVA as I wouldn't be able to afford to furnish a house from nothing plus keep up my payments. In the meantime I would be proposing that I raise my payments so they would be receiving more money than originally planned. I know savings aren't priority but in order for me to actually move out again, I need to save! Catch 22 or what!
