Variation been declined by DFD

[loopylass81]

I put in a request to reduce my payments as I can no longer afford them.. DFD have declined my request and now because it took 18 months for the variation to get to the stage of them agreeing or declining they are going to issue a breach of notice and I really dont know what to do anymore...

[carlmcmullen]

Hi Loopy

Cant really give you any advice on this - but just wanted to say keep your eye on the Forum you will get a response soon from either Ian or Melanie i am sure.

Think Melanie is away for the weekend and Ian doesnt post until late but somebody will get back to you.

[Reviva UK]

Hi
really sorry to hear about your situation.
it might help if you can give us a little more background around your situation and what the reasons were for the modification

thanks

[Adam Davies]

Hi
Is it DFD that have declined ? because it should be your creditors,I presume that your variation request was not actually proposed
Regards

[loopylass81]

Hi
Is it DFD that have declined ? because it should be your creditors,I presume that your variation request was not actually proposed
Regards

no the ip would not even put it to the creditors. I am so fed up now as DFD have mucked my iva up the whole way through and I have not had an easy time at all with it.

The reason I put the variation in place was because when I started the IVA I was on my own with my little boy. I have since then met someone new who is living me with, however due to my work moving locations and their being no childcare available in this area for the hours I work my partner gave up his job so I could continue to work and pay my iva. This however means that I pay all the bills and my partner doesnt bring anything into the house.

I have asked my partner to deal with DFD as it is distressing me so much. He has explained our circumstances and we have provided evidence all the way through to explain why I can only pay the amount I am paying but the longer DFD draw it out the more it seems to me i am getting in debt. I am at a lost of what to do now other than declare myself bankrupt which would mean I may also lose my job!!!!!

[wen]

loopylass, sorry to hear of your troubles, do not worry, hang in there and one of our experts will be a long shortly to help!

[Reviva UK]

Hi

what type of job do you do and why do you think you would loose it?

Also what are your monthly payments and what was the total debt.

Can I assume that you don't own a house

look forward to the reply

[loopylass81]

I work as a recruitment consulant for a large company. My repayments to start off with were £354 a month however I am at the moment on the advise of DFD only paying £234 however they seem to think that I can afford to pay £564!!

My debt is £65k I had to sell my house due to me splitting with my ex hubby when I realised how much debt he had incurred.

Also I have been reading my documents from DFD how is the min pence in a pound worked out??

[Reviva UK]

Hi Lopylass81
Would need to check employment contract but v unlikely to loose job. There are unfortunately so many myths re Br.

However as the IVA has not failed it is worth discussing how it could be put back on track and how you might present a workable solution back to DFD. The challenge is that because DFD are a little infleible it is difficult to discuss this with them until you have a formulated plan / offer.

Suggest you speak to one of the experts for their advice but happy to discuss the options re proposing a modification plan to your IP. It is a service we offer free and happy to chat at weekend if you need the support. You may of course want to get advice from melanies team on monday.

[loopylass81]

thank you for that. I have definitely found DFD inflexible have got all my paperwork out and am now stuck on a couple of things.. How do you work out how much food, household & clothing allowance to allow?

Also how is the pence in the pound bit worked out?

I want to come up with a plan to produce to DFD on Monday as I definitely want to continue this way and not end up going bankrupt.

thanks for your help

[Reviva UK]

Hi

in reality you are the best judge for food, household & Clothing allowance and what you absolutely need to have per month.

In your line of work you obviously have to look smart otherwise you cannot perform your job so probably 35 - 50pm.
Food / household suggest the bare minimum for a single person in 170 - 180. each additional person in household is approx another 100 per month.

the percentage dividend is always a bit unclear as it is what the creditors receive BUT is not what you pay into the IVA.

The total of what you pay includes the fees for the IP in addition to the percentage dividenr.

Hope this helps

[loopylass81]

On that aspect would I be unreasonable to put down for the three of us 75 clothing allowance and £380 for our food and household allowance?

Im going to ask how they work at the dividend as reading through my agreement it says that I have to make a minimum payment of 29p per £1 for my iva to continue..

many thanks

[pixie]

I was quoted the following when I asked for a review 'Food and Household Goods, Personal Hygiene, Clothing and Contingency are all based on national guidelines. These will not be increased unless you can provide a specific reason (such as medical grounds) why these have increased.'
I wasn't successful in increasing the household budget which is £130 for me and 2 cats but I did manage to increase clothing from £20 to £50. I need to look smart for work and I'm a big girl so they don't come cheap!
If you can't get any joy from the caseworker insist on speaking to your IP.

[Reviva UK]

Hi

don't think that 380 is unreasonable at all for Household alowance for 3 - especially as your son is going to continue to grow over the next X years so you are always buying clothes and shoes.

Clothing might be considered a little high as your partner is not currently working so won't need to replace work clothes etc quite as regularly.

The 29p in the pound means that if you owed 65k they would expect a minimum dividend of 18,885 paid back to the creditors over the 5 year term. This is in addition to the fees that DFD will earn from your contributions to the IVA.

So;-

354 pm x 60 months = 21,240

however DFD will be collecting a total fee of approx 8,500 over the 5 years plus vat ( THE exact figure will be shown on the IVA document). so it seems to me that the total you would need to pay over the 5 years is

18,850 ( 29% of debt as contribution )
Plus the fee for DFD of
10,000 ( inc VAT)

= 28,850 ( remember that these numbers are based on assumptions and the figures you have given)

this would give an average monthly payment of 480 pm for 60 months. This is the only way to get to the figures that you have shown.

Clearly if you are paying less at the beginning you would need to pay more towards the end in order to catch up.

Q. do you have anything on HP finance that finishes through the term of the IVA. If for example you had a car you would be allowed to keep the car but when the HP payments were finished your contribution into the IVA would increase by that amount.

Hope this makes some sense.

[loopylass81]

No I havent got anything ending at all.. I get bonus's a couple of times a year and send in half of what I get but they are irregular. They are normally bout £80 a time. Are they taken into account at all??? Your figures are bout right I think from what I have read this afternoon. Am not sure what to suggest now as Ive worked everything out and I am no where near the amount that is required.