overdrawn

[In-a-pickle]

we are now in our second month of having dipped into the red....£25 last month, £180 this....

we are in talks with IP for a variation...

does the overdraft mean immediate failure?

we are 18 months into IVA, and are OD due to disposable income shrinking- maintaining the agreed dividend will result in certain failure of the IVA

our IP has been very good so far, but I worry that we are doomed

[kallis3]

I don't think it will mean immediate failure. I presume your IP knows about the fact that you are having to dip into an overdraft?

I think you need to phone them up again and tell them that it is imperative that they sort out a variation as soon as possible as you are in serious danger of going under.

[David Mond]

Need to establish why your DI is wrong based upon what you originally put down as your expenditure and what it is now AND what has happened to why your Income has changed. It won't fail at this juncture but speak and discuss with your IP.

[MelanieGiles]

If you are having to rely on an overdraft facility, which is not permitted under the terms of your IVA, then there is something radically wrong with the level of allowances you agreed to - unless of course the creditors asked for more money at the creditors meeting which in hindsight is now unaffordable.

[MrsPurple]

I'm worried now. We changed banks when we got iVA and were into overdraft situation before IVA agreed. However did mention this to IP and assured it was fine. It is a managed account and we reduce it by £40 each month so will be zero by Nov. IVA last review for equity release is next March 2010.

Will we have problems re this?

[David Mond]

I don't think so - but mention it to your IP though. Not long to go Mrs P. x

[dand]

not fully sure of the situation you are in. Doesnt the OD form part of the IVA payback anyway?

[MrsPurple]

no OD is with the bank IP suggested we moved to. I have mentionbed to IP before IVA started as I was worried but was told not to worry. So I haven't thought about it.

I had severre depression so wasn't coping well. Haven't had much contact with IP, would have liked to but inital contact was very rude, then IP were taken over. Heard nothing for 18 months then a threatening letter re missed payments (whioch I wasn't aware we had) - turned out one was inital payment due to burst boiler and other was from 18monthsw before which they had only just noticed (I missed as was in thick of depression and assumed all was ok). Got new contact who was proactive and greeat.

Then in March got threatening letter re missed payment (which we hadn't missed - because Feb only has 28 days they sent letters out early?). Letter arrived on weekend so you can imagine the weekend I had!

Another new contact as previuos left! Now had reveiw and been grilled and told stuff last contacxt told me is incorrect. Even told not allowed any kind of contingency.

[plasticdaft]

How did you manage to go overdrawn with your new bank?? Had you not stopped paying your creditors??

[David Mond]

This sounds rubbish - who is you IP Mrs P?

[MrsPurple]

yes, but had new baby and everything seemed to breakdown in one go. I was just unfortunate. And I wasn't working but managed to get job by the time IVA was going through.

[MrsPurple]

credit fix

[David Mond]

credit fix limited based in Scotland? Who actually is your IP?

[MrsPurple]

don't know if I want to say, as it may look bad for me. Ip is a lovely lady. I've only seen her the time we signed all docs.

[David Mond]

It won't look bad for you - as your IP might be with a different firm as have not come across this company before.

Your IP and her staff should be aware about contingencies and stuff like and it might well be that that the firm administering your IVA is different having been "acquired" by another firm for example. If you want email me direct with the information and I'll respond privately to you once I know the name.