Hi everyone! I just have a question, my mum is in the process of applying for an IVA and I am going to contribute every month. How are the payments made? Is it direct debit? Standing order? Also, if they assess my mum as being able to afford £250 per month, and I am going to pay an extra £200 per month, can the whole direct debit (?) for £450 be on my account or does it have to be on hers? If there are months where she doesn't give me her part for whatever reason, is the £250 she is not technically paying going to be extra money she should be declaring? Some of the debt is my fault, so I want to help out and pay when I can, but I don't want to upset the apple cart!
Hi and welcome to the forum. The payments can be direct debit or standing order it depends on the company. The IVA will be based on your Mum's disposable income. Have you informed your Mum's IP about what you plan to do?
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Yeah we have been in touch with an IP and have an appointment in a couple of weeks. Yes it is entirely based on her income, which we have calculated to be £250 surplus (based on advice from IP). IP said it is normal to have third party contributions (me) but I wondered how we pay. Ideally, we were hoping the £450 could be set up on my account as I am employed and have a guaranteed income (mum is retired) and then mum would give me her £250 every month. If she had a tough month, she may give me less, or none at all - agreed between us of course. Naturally all declarations re: mum's income will be entirely above board and correct. I can afford to put quite a bit in, but I know they won't actually consider my I&E per se. But I am concerned if I have months where I pay the £450 entirely for me mum, is she technically going to have £250 of spare money? It certainly won't be the case every month, but just now and then if I have a good month. I do feel partially responsible for some of the debt so I want to help out as much as I can when I can afford it.
I've never personally heard of 3rd party additional contributions but that isn't to say it's not usual. I know some posters have family members help them maintain their payments due to a change of income though.
hang in there we do have some IP's who post and may be able to give you some advice.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
It certainly is 'unusual' rather than usual to have a 3rd party helping to pay for the IVA, I really don't know where the IP you talked to gets that idea from!
Speak to a few firms before settling on one that you may regret somewhere down this journey. Melanie Giles and McCambridge Duffy come highly rated and openly regarded as helpful and accessible on this forum. It is fantastic that you are be looking at helping your Mum, but I don't think you should make such a contractual commitment to the payments into the IVA.
Last Payment made 04/12/14. Completion Certificate 25/7/15. IVA company GT. No Issues
Hi Lime, It is wonderful that you wish to help your mum this way. But, I don't see the need to commit to such a route at this stage.
As advised above, have a word with those IP's and compare advice, but, I would imagine, if your mum can afford £250 per month she could propose an IVA based solely on her income and disposable income.
Once that is up and running there is no reason why you could not contribute "in kind"; buy some shopping or some treats, fill the car, that sort of thing.
Out of interest (and I think I might know) who have you been speaking to thus far ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Hi Foggy! From other forums, we have sort of thought about the figures and think the £250 a month wouldn't be a enough. The total debt is around £90k, my mum has a house with about £50k of equity in but she cannot release it due to her age, widowed etc (have already spoken with Financial Advisor). It would not be in the interests of the creditors to accept such a low amount, far more cost effective to petition for bankruptcy. I have been helping her maintain payments for some time so currently all accounts are all up to date. My thought was, if I pay extra in every month, and maybe a small lump sum at the start (around £5k) they might be more willing to accept the proposal. My mum is terrified at the idea of losing the house of having to sell up, my sister knows nothing of this and she wants to keep it this way. I know some might think I should not contractually enter into anything, but I have mine and hubby's income and a private pension so we know we can commit to the payments - I just want to be sure that she can be accepted. Bankruptcy simply isn't an option. We have communicated with StepChange and a few local advice centres, but the majority of our advice has come from Grant Thornton - is that who you thought? Does these guys seem good?
I would definitely have a word with a couple more and the two mentioned above are a good starting point. www.iva.com lists some companies too which you could consider. Doesn't matter how many you talk to.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
My initial thoughts were StepChange (who often refer on to GT)or Payplan, who are largely funded by the creditors themselves.
I am with GT ( not through choice -- they purchased my case) and they have handled my IVA very well indeed. However, they are having major problems with closing cases at the moment ( hopefully this glitch will pass in time, being due to PPI).
I have seen IVA's accepted as low as 9 pence in the pound, which is about half what the £250 would achieve, so I would not rule out my suggestion without taking further advice from Melanie Giles, and / or McCambridge Duffy.
Last edited by Foggy on Mon Aug 05, 2013 7:37 pm, edited 1 time in total.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Surely they will all tell me the same thing won't they? I will absolutely ask some more, but I like the idea of going to an office and speaking face to face with some one. Grant Thornton charge no fee for set up, so am I naive in thinking they have nothing to gain in spinning a load of useless information if it doesn't go ahead, as they will get nothing for their work?!
Lime, none of the firms so far mentioned charge any upfront fee, and all will meet face to face if required.
No, I am afraid they are not all the same ! Although they all use StepChange guidelines, as these are acceptable to the creditors, some are more stringent than others.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Worth a chat though, you are able to have a face to face with a company if you so wish. All self-employed should have face to face so I'm sure they won't mind meeting with you.
Most companies won't charge any up front fees at all. I was with Melanie Giles and can confirm she charges nothing up front. I did send one payment in prior to meeting date and knew in the unlikely event my proposal was rejected my cheque would be returned to me.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Thanks every one!! I may be being stupid here, but it was my impression initially that the IP is there to help you - but I see more than they of course have law and rules to stick to and have a duty to the creditors etc. For example, if they find out about any windfall you may have had they have a duty to disclose it to creditors etc - so I guess in my situation, as a third party wishing to contribute, I want an IP that will help me in as greater way as legitimately possible. I'm the person who does 25 in a 30mph zone, I want to do everything by the book for my mum and I, but I realise if I pay for things on my mum's behalf by contributing extra, could I possibly be opening up a case of fraud as it is extra money she is receiving on odd occasions and not throwing into the IVA. So when you say some IPs are more stringent than others, I am looking for one who will understand the situation and perhaps assist more, ie. less stringent? Does that even make sense?!
