www.iva.co.uk

Hi, Im having trouble with my IVA at the moment as they keep asking for board and lodgings from my two daughters who are now 18, however they only have part time jobs so they dont pay anything as they pay for all their own stuff but as i have told them this they have said they will have to pass my file to the Insolvency Practitioner. Surely this cant be right especially if they are not paying and when i have tried to explain this they dont seem to get it.

any help in this matter or guidance would be greatly appreciated

Marc

Hi - the attitude towards adult children seems to vary from IP to IP. If your daughters are now paying for their own stuff, I'm sure a compromise can be achieved whereby your allowances are reduced and creditors benefit from an uplift that way. If they are still in full time education, I believe that gives you a stronger case to argue that they are dependents.

Thanks for the reply, but if they are not paying anything I cant see how they can ask for money that isnt there my case officer seems very unhelpfull, just keeps saying i will be in breach of my conditions as they are now 18

You do sometimes find that if your child is living at home and earning, regardless of the amount, they are expected to pay something towards board.

I don't think I was very clear. You said your daughters pay for their own stuff now...so you don't need clothing, food allowances eTc which increases your disposable income available to creditors without your daughters paying for their board and lodging. If yout daughters really have no money to contribute, this may be a compromise.

When i say pay for their own stuff i meant if they want anything for themselves they pay for it.oner of them as passed her test and saved up to buy herself a motor and pay for her insurance as we live in the middle of no where we still have to take the other one to and from work which shee pays petrol towards but top me it seems as if as soon as they are 18 they are expected to pay board however there is no law that states that and if they dont earn enough they cant be expected to pay. perhaps im looking at it wrong

anyway thanks for the replies its good to get another angle on things

Hi - it sounds harsh but I think if children are not in relevant education then it would be hard to convince creditors to pay any allowances towards their keep.

My son was not working when we took out our IVA and he did not have to pay anything. He now works self employed and gives me £80 a month which I pay over to our IVA payments.

Hi marcbfc It does,nt matter about the law,if your adult sons/daughters are recieving any income, under the terms and conditions of a iva,the creditors will expect you to recieve a nominal lodge fee if they are living at home ,this figure needs to be added to your income and expenditure form.

I suggest that you take £10 per week off each daughter as a contribution towards board and lodge. This should satisfy your IP firm, and also teach them good fiscal management. I used to pay my Mum £10 per week when I started work, and then I was only earning about £1,800 per year (a very long time ago!!)

If your daughters are only working part time have they checked to see if they entitled to any benefits like tax credits or JSA to supplement their income...now they have reached 18 they will be expected to pay their way, enabling your disposable income to increase to support your creditor payments...but like Mel says charge them a nominal amount and I am sure your IP will be ok with that !