www.iva.co.uk

Hi I am currently in an IVA and have two properties with £0 contingency I was wondering if you could help me do you think that I would be allowed £50 for the house I live in and £30 for the rental house.
I feel that it is essential to have this as the way I look at it is whats the point of owning a sandwich business if the ip does not allow you money to buy the bread?
Every house needs maintenance and somebody is due to move in but we need new guttering its only £30 per piece and then we had to get paint and I cannot afford it all on the budget I have been allowed.
Thanks

we have a small contingency budget that we can use on the house, but surely if you are renting then the upkeep forms part of the rent??

Hi Penny,

If you are in an IVA then I think you need to speak to your IP about this. You should have a contingency allowance anyway.

Hi Relieved33 The upkeep does form part of the rent but the iva takes all of the rent on top of my normal payments but the problem I have is that I needed my roof repaired on my house december so I had a £500 payment break so they added a 73rd month on whereas if I had been allowed a £50 contingency I would not have had to take one and as for the rental property I am fed up of having to ring and saying oh I need this and I need that when if I had a £30 contingency it would run a lot smoother.

A shame this was not considered when the IVA was entered into - but there is no harm in asking for an allowance for household repairs. If I were your IP, I would be less sympathetic with regard to an investment property - is there any equity in it?

I think a contingency is a good idea but I can't see you getting an allowance of £50 and £30. I have a contingency of £20 for my house and the investment property (in significant negative equity) has a
contingency of £5. The way I see it is that this has been a fair reflection of my cost since may but if a major expense occured I would discuss this with my ip to agree on a solution.

newbeginings wrote:

I think a contingency is a good idea but I can't see you getting an allowance of £50 and £30. I have a contingency of £20 for my house and the investment property (in significant negative equity) has a
contingency of £5. The way I see it is that this has been a fair reflection of my cost since may but if a major expense occured I would discuss this with my ip to agree on a solution.

What the heck are you meant to do with a fiver a month??? Doesnt even pay a window cleaner!!!![:D]

Why would I be cleaning windows flat I don't live in. The point I was making was to make sure allowances are realistic and not likely to be knocked back by creditors.

i thought thats what payment holidays were for if you needed anything big done its what we did when boiler packed up few yrs ago i thought contingency was for little things like maybe painting a room so can yuo have a contingency for big repairs as well wish id known wouldnt of had to take holiday payemnts owell live and learn

I think it's important to recognise that most ips are approachable and are there to support us when we run into difficulty and help find a workable solution.

I agree with Paul.

However, if you have a contingency allowance, you can always let this build up so you have something behind you if something untoward happens.

never knew were allowed a contingency fund live and learn

I don't think we have one. Thankfully we've not needed to do anything.

Hi All thanks for your comments the reason I want a contingency is because I could still pay the creditors £890 per month compared to the £552 proposed amount and by having the contingency means I wouldnt have to miss any more payments I am only allowed 2 and they will automatically file for my bankruptcy.Also I would hardly need to contact them as the iva will be more realistic we are getting the property ready for renting and I have paid £25 for a window to be repaired £20 on paint £40 for the backdoor to be fixed and we have had to purchase 2 locks and like any house it needs maintainence and where is the money supposed to come from without a contingency?
Melanie the property is £20000 in negative equity or I would sell it we are both working full time and then getting that ready in the evenings and its a real struggle to be honest.

Your IVA payments should be based on any profit made from the property and not the actual income. When you do your tax return the expenses of maintenance would be allowed and then if there was any profit [after tax] this could go to creditors.

You should not need a contingency for the rental property as it should be dealt with when you submit your annual return. We have many clients in IVAs who own investment properties and only the amount they make after expenses and tax is taken into account.