hi hope i can get some advice my sister inlaw is in iva, repaying 101 per month, it seems to me that when here circumstances changed (birth of child) the IVA should have been re-assessed and at that point they realised that she couldn't afford it anymore.. is it possible to enter into a DRO after an IVA or would bankruptcy be the "better" option? is it worth while challanging debts that were included in the IVA or would the IP have done this when they got creditor approval?
It is a possibility that, if they realised the IVA was no longer affordable it would have simply been failed and a waste of time and your sister's money. By carrying on she was demonstrating that she could afford it and she should have spoken to the IP at that point.
Anyway -- she can now fail the IVA, if she wishes and it is possible that she might qualify for a DRO, depending on her circumstances, or, even BR might be a way forward. Discuss the options with her IP or have a chat at CAB.
If a DRO or BR is the way forward there is little point in challenging the debts as they will be wiped anyway, in due course.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
thank you for the response, the IVA amount was amended down to £101 after re-assesment. but i get the impression that the case worker/IP brow beat her into signing this. I've done a quick and dirty budget and she is at least £100 short each month before the IVA payment.
When doing a budget much will depend upon the level of expenditure the creditors consider reasonable for certain expenditure groups, so there might be room to come adrift there. For most companies an IVA payment below about £100 is not viable and the IVA would fail.
Research DRO and BR with CAB and the matter could be put to bed relatively soon.
Of course, a pertinent point would also be how long the IVA has been running --- it might be better to tough it out if there isn't too long left.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thank you all.
Have found out a little more on this IVA only active since Feb there is no change to circumstance scince then , does anyone think she might have a valid complaint, looking at the information my sister has told me she was within the DRO limit,(20k) at the time of the IVA, Knightsbridge insolvency advertis on the their website that IVA below £70 per month will be accepted and DRO are only available for less than 15k??? I think that she was ''mislead" with the advice from the IP/case worker. Worth while complaining.
The DRO limit has only recently increased from 15 to 20k .. Knightsbridge are one of the few who will take on an IV at that sort of repayment --- it is not always the case that the creditors ( with whom the final decision lies) will accept this as most of the repayment will be eaten up in fees and admin costs. However, in this case they did.
As things stand she could only complain to the regulators of her IP -- who will, if they agree, issue a slap on the wrist -- they do not reverse what the IP has done or, indeed, make any other changes as a result of a complaint. The other alternative is to go to court -- an expensive gamble.
Probably the best course would be, assuming a DRO or BR is the way forward after taking advice, to cut her losses, fail the IVA and take one of the other debt solutions --- but do take professional advice first.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
