Unable to pay IVA payment

[kalf]

It's the case Manager who I speak to, but she spoke to my Supervisor asking for the payment break, and she was the one who told the case manager to ask for monthly accounts and payslips.

I have now emailed my case manager and asked her to speak to my Supervisor. I have explained everything even down to the point of not stocking the fridge, and only buying food on a daily basis from Aldi. I can't believe it has got to this. The ironic thing is, that we live in a large detached house (way too big for just two of us now), in negative equity so can't sell it. We pay a mortgage of £1500 a month, and feel like it's a huge stone around our necks, and then on the same hand can't afford to buy food.

[ginger3232]

Kalf - dont give up - once you speak to your IVA company - i am sure things will be sorted out quickly.

Can i ask the name of your company - as you may find they post on here, just sometimes things can move quicker if is mentioned on here - or other people may be able to offer some more advice to get things started.

[kalf]

Company is called Liberta. Has anyone heard of them. I think they are pretty new. I think I was their first client. Incidentally after reading some comments on here about final settlement, I was shocked that your IP has all their charges put on first, and often your outstanding debt is still virtually the same after a couple of years. So I checked out their charges, and found it was 20%. Do you think this is a little high?

[ginger3232]

Kalf - that usually the case with IVA fees - as a lot of work has gone into the IVA set up - so the company needs money to pay its workers and cover its costs - dont forget the creditors agree to this and the fees levels - so this should not cause you concern unless your paying back all your debt and fees

[Niobe]

I think Liberta have been round for a,few years and there used to be a poster from there on here but not anymore as far as I'm aware.

Try speaking to your ip directly rather than the office staff.

[kalf]

After taking your advice, I emailed my supervisor. I just had a really nice telephone call from a new case worker, who seemed very sympathetic. Anyway basically she has asked me to put together a new I&E, as obviously without working, I now don't have the cost of hotels, petrol, etc. They have given me a payment break this month, and perhaps look into a 6 month break or go back to creditors for a review. Either way, am now blubbing like a baby with the relief. Should have done this ages ago. One question though, if you have a payment break for 6 months, is this tagged onto the end of 5/6 years?

[MelanieGiles]

Liz at Liberta is a first class IP who will want to understand your issues and work with you. I am sure you will get a sensible solution worked out soon.

[Niobe]

That's good news kalf. Glad you have some breathing space.

I imagine the missing payments will be tagged on unless you are able to work in which case you might be able to make them up with higher monthly payments.

[ginger3232]

Kalf - good well done ! - the payment break can usually be tagged on or the payments made up during the rest of the IVA(if you can afford to) - check with your IVA proposal or IVA company to get an exact answer. - as this will depend on your individual circumstance.

Go and have a beer/glass of wine and have a relaxing afternoon

[kalf]

Thanks Mel and everyone. I have never had a problem with Liz and always found her very helpful, but as a Supervisor surely she has a duty to the creditors too, and my worry is that if my back injury is long term we will have no choice but to go into bankruptcy which we desperately don't want to do. Which is obviously why I prevaricated in the first place. I kept hoping things would get better and I could get back to work. Anyway feel much better now after talking to case manager, at least I can get through the weekend with the hope this can be sorted out. Where would I be without this site, it's been a godsend.

[kalf]

Thanks ginger, I really feel like a beer now lol. Hope everyone has a good bank holiday weekend ))

[MelanieGiles]

Liz will do everything she possibly can to keep your IVA going - even if this involves an extended payment break.

I sympathise with the back - I have a really bad one at the moment and am suffering from 3 visits to the chiro each week - painful!

[kalf]

Thanks Melanie. Ouch, chiro three times a week, bet that hurts. My husband tried chiro years ago, didn't do him any good, but then his was a prolapsed disc. Both of us have back issues, mine comes from many years in my line of work, I think my back has finally given up the ghost. Liz is off at the moment, but hopefully I will get to speak to her next week. Her assistant was great, at least I can relax a little now and hopefully will be able to sort something out next week.

[MelanieGiles]

Mine comes from sitting in front of a computer for too long each day, and long car journeys without taking a break. That coupled with believing that I can still run as fast, and lift as heavy weights as I used to be able to do in my twenties! Memo to self - you are getting old!!!!

[kalf]

Hi to Melanie and everyone else who have given me invaluable advice. Thought I would update you with how things are going. I took everyone's advice and contacted my IP. I spoke to my new case manager, who was absolutely great. Anyway she gave us a payment break, asked me to put together a new I&E, and to put together my management accounts (as I am self-employed) over last 6 months. As she quite rightly pointed out, although I have no income, I also don't have the same expenditure ie car, mileage, hotels, etc. Anyway I did this, and surprisingly, I never knew how much I actually made once all my expenses came out. It comes as quite a shock to realise once you take off these expenses you are left with only half the income you think you get, and that is before tax & NI. So once all the expenses had gone, and doing a new I&E I realised that we could just about scrape by on my husbands income and my Support Allowance. It will be very tough though, food, clothes, expenses have been cut to the bone. At this time, I feel it is unlikely I will ever be fit again to do my job, and unfortunately the skills I have aren't transferable into another job. So if I ever work again, this is likely to be on minimum wage, which is deeply depressing, as it has taken me years to achieve a good job & career. Anyway I digress, to cut a long story short, she has calculated we can pay £150 joint into an IVA. Have to admit though that we have nothing left, and our food allowance is much less than before, so it is very tight. But the other thing she asked was if we had any 'kind' relatives who could offer a f&f settlement instead. She has given us a payment break this month and next month, and hoping to go back to a creditors meeting by August. But my question now is, if based on £150 per month, and based on the fact that we are 30 months into the IVA, how much would a f&f settlement offer be? The IVA proposal value was £39,849. We have paid in so far £20,066. We have 28 months left, then with another year (I am assuming as we are in negative equity), equals 40 months left. I worked out (if accepted) £150 per month = £6,000. We may also have some PPI being paid into the IVA, but this unknown as yet. So if I did go cap in hand to relatives, how much do you think I could offer as a f&f settlement?