My partner is in an Iva with payplan. Hes got roughly a 1.5 years left to pay in.
I'm not really knowledgeable about ivas but recently a few things strike me as unfair so I want to get advise as hes scared rigid they will defalt him so wont rock the boat.
1) in last year he has had 5 different case workers all with varying degrees of not botheredness! Each time he calls he is run around houses without being told of change. He was even emailing one who had left so emails went unanswered for a month! This seems like awful service to me!
2) he has already paid 2k over original Iva price and with 1.5 years to go why is this? Because of above change in case workers this has never been explained.
3) this month car failed mot. Which he needs for work. It was £500. In all his Iva life he has never asked for a break or help. This is money we cant just find. They allow him £20 a month car costs and said it should have come out of this! Despite him posting off receipts for past costs on tyres and oil. Because he needs the car I have had to cover it. And tbh Iva couldn't care less!!
Im now getting myself into debt to cover costs! The dog has been ill and because hes not alowed money for this ive already covered £600 and now the mot!
Sorry for long winded post but I thought ivas were to help!! What to do??
In an iva you owe the full debt amount plus fees plus statutory interest until the end. People often pay more than first projected as circumstances change.
You should have a car allowance but should also be able to take payment breaks or make reduced payments to cover expenses. We did.
We had a small pet allowance and had dog insurance. I am not too sure how creditors would view paying hundreds out on a dog though.
IVAs are meant to help and if you are not happy with replies ftom case workers, ask to dpeak to a manager.
It is not helping- if anything its getting me into debt!
We really struggle with payments & bills but his Iva don't seem to care.
At one point we explained I was going to lose my job and what would happen to husbands payments as he would have to cover bills until I found work - nothing they said, as id get benifits!!
We are even putting off starting a family which is killing me. Hes only got 1 1/2 years to go but this Iva is awful!
Life isn't meant to be easy in an iva, but you are meant to live!
I think payplan are one company that look at household income and treat it as household debt really where as other companies don't - not that this helps you.
Are you managing to make your monthly payments? If not, IPs can often reduce your payments by15% without having to go to creditors.
I do think a review of your income and expenditure is needed.
I am afraid that this is one of the problems with a company like this -- they consider that household income is all included, which results in the solvent spouse, effectively, paying towards the IVA. They have 1 (maybe 2 now) IP to deal with thousands of clients and you will NEVER be allowed any direct contact. All case handling is done by an ever changing ( and poorly motivated) staff !
None of this, of course, helps you in any way, pipkins, I am sorry. All you can do is keep pushing.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Oh -- the extra payments: The idea of the IVA is to pay back as much as you can reasonably afford and, if you earn extra money, part of this goes to your creditors, over and above the agreed repayments. You don't get any debt written off until the end.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Pipkins - see whether it is possible whether you can find the funds to make a full and final offer or be b***** minded and start planning that family now.
My other half always says that sometimes you just have to do what is needed and s** everyone 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.
If you start planning now, it might take a few months to catch -- then 9 months cooking, so the IVA will almost be at an end by the time the little'un makes an appearance anyway (assuming no equity release extension).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Hi Pipkins I recommend your partner makes a written request to his IP for a written explanation as to what's gone on. They should have written to him at the time his payments increased to explain why - this could only really have happened if he had an increase in his net income. Tell them if you do not receive a satisfactory explanaiton within say 2 weeks you will make a formal complaint to their governing body and the Gateway body - see this link
As regards the car you can ask for a payment break - this will extend the IVA though as he will have to catch the payment up. The only other thing I can suggest is if you have a family member willing to 'gift' you a lump sum to reach and full and final settlement to bring the IVA to an early end so you can move on. As regards starting a family I would recommend you are financially stable before doing so but on the other hand you only live once - and as Foggy says - by the time you finish 'cooking' the IVA will be near its end anyway (as long as there is no holiday). Good luck.
I am in the same boat and have my IVA with payplan. I cannot keep up with the amount of case workers I have ben given in the past few years, and they are getting more and more disinterested. I have made a formal complaint about the way my salary increase was handled, as they decided it was ok to change the rules, even though my chairmans report said otherwise. I am yet to hear anything back [:(!] All I can say is to keep getting in contact and explain things, and hope that it all gets sorted soon
Sorry to be dim, what do you mean by they look at household income?
Its putting such a strain on things. He tried to tell them a year ago about a bill we had he paid half towards for Littlewoods as we needed a new fridge and was only way we could afford one- they wouldn't aknowledge it!
Our bed so bad could feel springs- I had to pay for that, I had to pay for vets bills. Our sofa has springs and foam sticking out of it!
Is this really how an Iva should be?
My hubby always says its his debt his problem but it puts such a strain on things! How do you all cope?
We shop around for deals on gas elec insurance etc our weekly shop I keep at £50.
He pays £600 a month into his Iva. I don't get paid much more than that!!
Plus what do you mean by equity? Surely once time is up then its all settled? Xx
If you own your own home any equity in it has to be looked at at month 54 and an attempt made to release some of it into the IVA. Failure to release equity ( which is the norm these days) usually results in a 12 month extension to the IVA.
Household income: Some firms use household income to arrive at the disposable income ( IVA payment). Most, however, only use the income of the debtor. So, VERY roughly :-
Using HOUSEHOLD income -
IVA spouse earns £1500 per month
Solvent spouse earns £1500 per month
Household income therefore £3000 per month
Expenses £1000 per month
IVA payment £2000 per month
Using the income of the debtor only -
IVA spouse earns £1500 per month
Solvent spouse earns £1500 per month
Expenses £1000 per month. As each partner earns the same the expenses are expected to be split 50/50. So the debtors share of the household expenses would be £500
The IVA payment in this case would be £1000.
Obviously there are many other factors influencing the calculations and this is an over simplified example to illustrate that using household income results in a higher return to the creditors.
It can be( and is ) argued that the solvent spouse has benefitted from whatever the debt purchased (furniture, holidays etc), but this is not always the case.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Household income looks at what you both earn, what you spend together and the remainder goes to creditors effectively leaving the non-iva partner with no disposable income as it's all taken.
Other companies split bills in the same ratio as income, if a partner earns twice as much, they pay 2/3 of the bills. This leaves the non-iva partner with their own disposable income.
We were both in ivas and have old sofas still, I had to give up my car as couldn't afford repairs or to replace, had draughty windows, worn clothes etc.
Regarding equity, look at the original proposal. Most say to extend for 12 months if there is equity that you cannot release. If uou can remortgage, it xan only be for up to 50% of your iva payments in most cases. Was this never mentioned? Check your proposal carefully and use the forum if you need to.
household income is just that, all the money that is coming into the household, wages, benefits CSA payments rent from lodgers probably even the 50p down the back of the sofa lol.
If you have equity in your home they you may have to pay extra across it depends how much etc, his proposal will state the criteria for this. It could be an extra years payments added on or an offer of a secured loan or nothing if there is no equity and the IVA will end after 60 payments. Littlewoods? catalogue he should have got permission before taking out any credit although some proposals do allow for £500 worth of credit. If his doesn't state it , he could have breached his conditions
If life is what you make it, I must have been in a strange mood when I made mine
