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Ive just had my 1st 6 month review of our second year, i checked the expenditure form to sign off any changes. I have been puzzled for some time why my expenditure looks so good on paper and in actual fact im skint every month. My payments are £378.96 each month into the iva and my disposable income is supposed to be £323.00 every month, now iv been thinking this is spare cash but in actual fact our expenditure form does not include our IVA payment so in effect we are about £40 odd pounds in arrears every month.
Any advice???
Lisa

Hi agnewli

How strange to have 2 reviews per year!

Why are your payments £378.96 (what an odd amount!) and your DI is £323? I cannot understand this point, and like you say no wonder you have no money left at the end of each month.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

We have a review every 6 months, our payment was supposed to be £323.00 every month but they incresed it after our 1st review as we wasnt paying enough in each month, they worked out that we owed them about £500, so it was divided over 10 months and thy have carried on taking that amount every month thereafter.
I am so depressed with this IVA, i dont see any light at the end of the tunnel, i say that we are worse off now but my husband seems to think we are ok. I have a 3 yr old daughter and i want the best for her, like any parent does, but unfortunatly money doesnt permit.
Melanie, our IVA proposal was finalised at 25p in the pound, we owed £56.000.
Do the figures sound right??

Lisa

Without seeing your income and expenditure form I cannot comment. If you feel that you are paying too much, then ask your IP if the payments can be reduced. If they refuse this, ask them to justify their decision, and post this on the forum for further advice and comment.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Two questions you need to find answers for to help you know what your options are.

1 Is there a minimum dividend required from your IVA? (probably would have been proposed as a modification by your creditors)

2 Does your proposal state that your contributions can be reduced (as well as put up), normally if there is such a clause it limits any reduction to 15%. You might find this in the mods, as well.

Find the answers to these two questions and it will help you to understand how much leeway you've got in the IVA,