www.iva.co.uk

Hi

Have just received notification of my reduction in pay today which takes effect as from 29 March. I am going to be losing a gross amount of £318 per month. Our IVA is just about to start the 6th year due to the equity release clause.
At the moment, our monthly payments are £289 so we won't be able to afford to make our monthly payments to the IVA. i have been in touch with our IVA company and they have sent us a new I & E form to complete. I am so scared that something is going to go wrong and the last 5 years will have been a waste. Is this the normal thing to happen in circumstances like this?
Our son is 19 years old and is now working full time. He leant us money at Christmas to pay for our boiler to be fixed and we are paying him back each month. This means he is not paying us any board payment at the moment. What do I put on the I & E form as it asks for non dependent income and also to list the dates of birth of the people in our house.

I really am worried about it all. Any help and assistance is greatly appreciated.

i would be truthfull, you never know due to change in circumstances creditors could agree to accept your iva is complete by what u have already paid

Complete your I&E and request that creditors accept payment to date to end your IVA. You have come so far no one will want your IVS to fail now and you have clearly done everything possible ....try and stay positive x

Thank you for your replies.

Do I include any income from my son on the I &E form or not. He is not giving us anything at the moment as we owe him money that he leant us.

I am so scared and worried.. the cost of everything is going up.

The IVA company said it could take 12 weeks to arrange a variation meeting. What will happen in the meantime. We can't afford to pay anything to the IVA. Our next payment is due 1st APril.

As he isn't paying board, you need to be careful what you put in your expenditure. I you have a food and housekeeping allowance for him, questions may be asked. The best thing is to not include his board payment (you're not getting it anyway) and do not put an allowance in for food & housekeeping.

Would it be easier to include my sons board payment as income and keep the food and housekeeping allowance as it was?

I am really worried as we can't afford the IVA payments with my wage reduction. The cost of everything is going up.

I am not sleeping properly and it feels like it did 5 years ago when we started the IVA. I really don't know what to do.

On paper that would look better, however in reality, your expenditure is different. From experience, creditors will not nornally allow a food & housekeeping allowance for a non dependant especially if they're working. However, if you have an understandable and good IP, there can be work arounds. Again, also a lot of things depend on your mix of creditors and how they vote.

Feeling really nervous - I don't want it all to go pear shaped after 5 years. I want to do things right and hopefully payments to date will be agreed.

I am so worried that I do something wrong as we really can't afford to keep on making our payments. I don't know what we are going to do. I have 3 teenage boys, one of whom is working and the other 2 are at school and college. I don't know what to put down for expenses now the oldest one is working. As I have said, he is not paying us anything at the moment due to the money he leant us for the heating, but I still buy the food etc for the 5 of us.

If anyone can help me, I would be so grateful.

Thanks

You should present your income and expenditure truthfully as it really is now. So your son's board money should be shown as income, if he is paying it to you, and if he has loaned you money to fix your boiler, this should be shown as a repayment of that money - assuming that you sought IP permission to actually take the loan.

Creditors will allow non-dependents not to contribute if their income is low and they could not afford to pay anything - and at your stage of the review, I assume it is an IP only review, rather that a presentation to creditors - although you may need to get the IP to call a variaiton meeting in which case your income and expenditure account will be subjected to creditor scrutiny.

From reading your postings, I really don't think you have done anything wrong or have anything to fear. Just be honest with your figures, and your IP is sure to want to work with you to get the best outcome for all parties.

So, if our son goes back to paying £100 per month and we include this as income, do we still have to reduce our food and cleaning expenses also, even though we are still buying everything.

He earns £1000 per month, and out of that pays his car insurance of £200. Will he be expected to pay us something on those amounts?

If he earning a reasonable wage, he should be making a reasonable contribution to the household. £100 seems very low, and he ought to be paying for his own food etc or paying a higher contribution.

I was going to say the same, £100 is very low he couldnt live anywhere else for that amount it needs to be more. Also, i know you are paying him back for the loan but cant it be put on hold for a few weeks until your meeting so you can at least keep up your payments until then?

Hi.

I have left my sons monthly amount at 100 per month but have reduced our food/cleaning bill by 100 pounds and also the clothing allowance by 50 pounds per month.

Does this seem a fair amount. It is hard to be really accurate. Based on those amounts we will be left with about 30 pounds a,month disposable income. Then from 1st September we will lose around 55 per month child benefit.

it seems more than fair to me. It means that he is buying his own clothes and food and contributing £100 for heating etc. If your IP asked for more I think that would be unfair to your Son. This is just my opinion and for the record I am in the same situation as you. 3 teens, 1 at school, 1 at college and the eldest just started work. He also earns £1000 but until he saves enough for a car and ins £250 goes towards travelling, £50 pm clothes min, £100 to me and the rest saving for transport of his own. It,s difficult for our youngsters out there at the moment x

It`s not an exact science is it? We have a son at Uni who is home for long periods and I remember trying to guesstimate our food bill uplift for the I&E.
If you`re upfront about the situation and they see that you are doing your best to be transparent on your budget, then I don`t think they`ll fuss over a bit of leeway. Just make sure you`re not being too harsh on yourself.