www.iva.co.uk

Hi I have been in a single IVA with Grant Thornton since Jan 07. I became pregnant in July 07 and had a baby girl in May 08. I have been on stat maternity pay since April 08. And I went back to work 4 days a week from 1st October just gone. When the IVA was approved I was working a full 40 hour week. To date I have not had a review of any kind. I am really worried because I received a work bonus of £3600 after tax in 07/08 tax year. And I had the 50% of my bonus for my IVA put in a savings account ready to give to them. I phoned them at the time and asked because I was pregnant and on maternity leave(or about to) Could I keep this money as I would be on £450 a month instead of my normal £1850 and I told them I had to borrow from friends and family so as not to default my IVA I would have used this money to help make my monthly payments ehich are £475 a month. They told me I couldn''''t make any arrangements or offers in the first 24 months and I could either keep the money and increase my payments immediately (how unhelpful I''''m on reduced wages!) or send the money in. I have done nothing about it and even though I have made every payment every month which has been an absolute struggle and stress having to get my boyfriend to help me out with every day rent and bills help with my IVA has been the icing on the cake. I have now spent into the bonus money by £1000. I used some towards my payments and I had a £400 vet bill when my dog was taken seriously ill. I just don''''t know what to do. I have also been claiming tax credits just while I have been on maternity leave and now I am back at work working tax credits which help me with the childcare costs. However these are due to stop in December because of my salary now I''''m off maternity pay. I am also not living with my babys dad so things are really a struggle. I''''ve read you can''''t claim benefits of any kind while on an IVA don''''t know if that is true?

A desperate Lucy

I am sure that this is being dealt with by your Supervisor, but if you want to send me your details to my website, I would be more than happy to alert your Supervisor to your concerns as I know him quite well.

Don't worry about the bonus - insolvency practitioners are not here to take money from clients which they cannot afford, and with the extra expenditure with the baby, it is unlikely that you will be required to pay all of it over.

And you can claim benefits when you are in an IVA - your insolvent situation does not affect this.

Hi Lucy,

You can claim benefits on an IVA, my husband is on Incapacity and DLA, as well as a private pension and he is in an IVA. You can't have an IVA solely on benefits, which is possibly what you are thinking about.

Are you receiving any financial help from the babys father? If not, that is something you need to get sorted out. I would also check that you are not still going to be entitled to tax credits. We had the minimum payment and our total income was near £50,000. Unless you are earning a large amount, you should be entitled to something.

If you are really struggling that much and if you have no assets, have you considered bankruptcy? That way you could be stress free and enjoying your babys first months, rather than worrying about money/

I know what you are saying I really don't want to go Bankrupt. I am entitled to some tax credits still just not as much as I have been when i was on stat maternity pay. The babys Daddy has been helping me out and is paying for the child care

Get in touch with Melanie as she suggests, and she can hopefully have a word for you.

Is there any specific reason for you not wanting to go bankrupt Lucy, or is it simply a perception/ethical thing?

Assuming you want to keep the IVA afloat, I would speak to GTs as soon as possible. I suspect that when your IVA was approved someone put in a modification to prevent a variation in the first 24 months? That makes it a bit more difficult but not impossible, depending upon who submitted the modification.

Your obligations will depend upon your proposal and any modifications to it. You appear aware of an obligation to pay a flat 50% of it into the IVA. This suggests to me that you cannot really keep back some of that money to offset reduced earnings. However, the way forward will depend upon the overall position, as we only know part of the picture.

As indicated above, speak to GTs - IPs are not ogres, despite what my picture suggests[:)]. I can think of few IPs who would not wish to try to keep in order the IVAs they are Supervising. If you would like to take up Melanie's kind offer of assistance with this, by all means do so, but I think in the final analysis you will ultimately have to make your own case.

Ian

ok thankyou for all of your advice

As Melanie states she knows the IP and I know the head of the Unit so if you give Melanie or me a call or email either of us she or I will sort this matter out for you.

I think that they are one and the same David.

Touche

Based upon Lucy's other post (the 5 page one where our friend needtotalk got involved) I think she has been able to sort it directly.

Ian

That is always the best way. IPs may not necessarily appreciate other IPs poking their nose it, when they could deal with the issues themselves.

Thanks for all your advice I have now happily sorted things!!

Pleased to hear it Lucy. Glad you are still with us! Keep posting.

Accepted Melanie but sometimes something could be missed in their offices and a friendly nudge from one IP to another (as long as they know them) can always be a help