I've just been through my second income & expenditure review as part of my IVA, which makes me into my 3rd year in my IVA. I'm concerned that during these reviews its very clear that day-to-day living costs rise, other outgoing rise, but my IP insists that showing an increase in my outgoings will suggest that i've managed with that increase up to now and that the creditors will question that I therefore should be able to increase my IVA payment. My circumstances haven't changed in terms on incomings. I'm just a bit dubious about those comments. I was under the impression the budget review was to provide an opportunity to make adjustments if it shows a variation from the previous year. My repayments have never changed despite my outgoings increasing but I'd like to bet if my incomings increased then my payments would go up!
I just wanted to check with your expertise that I'm being treated fairly. I'm concerned by conversations i've had with other people in an IVA that my particular company suddenly gets much more demanding to increase payments during year 4 and 5.
If your income has not increased and you have maintained your IVA payments it would look strange that your surplus is less at review. I can understand what your IP is saying but if you are receiving help from family or you are making severe economies this could be the answer he/she needs.
I'm keeping up repayments, just about, but obviously as the cost of EVERYTHING rises, the harder it becomes and a basic income and outgoing plan clearly demonstrates that but were money is allocated to things like heating or eating, as one rises the other must go down, simple choice, keep warm or don't eat. If its a case of if my disposable income increases then my repayments increase then surely it should work the other way around? Clearly not I guess!
The suggestion that because i've had to survive making major cutbacks on food and healthcare just to make sure I meet the monthly repayment is actually going AGAINST me rather than in my favour? At the end of the day the review process is flawed if its possible to increase the repayment but not decrease it?
Sorry, it seems very logical and not "strange" that anyone's surplus would be less a whole year later after significant increases in every day to day outgoing.
I appreciate what you are saying and basically you are making severe household economies. Your IP may have the discretion to reduce your payments by 15% without notifying creditors and if this is not enough the payments can be reduced further by calling another meeting of creditors.
I agree it is a two way street and you are right so speak to your IP about a reduction in payments as an IVA should not mean you have to choose between heat and food.
We had a similar problem with I & E - income stayed roughly same but bills went up & up & up over the 5 year period.
What I found with us is that our nett income just covered : rent, utilities , food, fuel & kids dinner & bus money but nothing else.
Although in our budget there were small amounts set aside for hairdressing, optical, clothes , dental , newspaper & a contingency of £ 50 a month- the reality is we couldn't afford any of those things. I found everything had to come out of the " food " money,,, which made for an intersting life when there are 4 kids in your household!! & crucially there was no budget set aside for the yearly school uniform nightmare.
If I hadn't have done that then our IVA would have failed & there was many a time when we thought stuff it! We might as well go bankrupt !,because it was just so hard!!
Go back to your IP & haggle a bit! You have nothing to lose by doing so....
An IVA has to be viewed as a test of endurance!!
IVA COMPLETED & CLEAN CREDIT FILE.
An old bible proverb says this: the rich one rules the poor, and the borrower is a slave to the lender.
"Go back to your IP & haggle a bit! You have nothing to lose by doing so..."
My circumstances changed during my IVA and I went from sharing to living alone, obviously my bills went through the roof. My experience was that if you can show the outgoings with proof i.e. bank statements and receipts your IP should make the appropriate adjustments for you to afford all your essentials.
What firm are you with, we are coming up to our second review and must admit Freeman Jones were really helpful on our first,we had increase in heating allowance, council tax, water rates and insurance accepted, we only had to send in proof (we sent actually bills) there is also a yearly increase in food allowance which we were not aware of until after review, The is a Stepchange Budget Guideline to allowances available but I haven't actually been able to find the 2013 yetit yet! Do you have the possibility of the 15% reduction that might help, good luck
