www.iva.co.uk

Afternoon all,

I've just had a variation meeting F&F offer rejected on the basis that it was a Sprout Loan.

Creditors that flat out refuse these types of loan are Cabot and Link Financial. None of these were the companies I initially took credit with. Despite me saying that due to my job in the travel industry looking precarious as a result of the pandemic, they still flat out refused.

I have to say I'm feeling mightily disheartened by this.

I just want my life back, the IVA came at a time in my life where I was in a very dark place and the stress of having it run on is severely impacting my mental health.

Can anyone offer some advice?

Some creditors feel that taking credit to exit early is a no-no, whilst others might have simply been disappointed with the offer amount, regardless of source. Has your IP come back to you with a detailed report ?

What stage are you actually at in the IVA in terms of term outstanding and the amounts involved (monthly payment, Sprout offer amount).

Possible solutions could be sourcing a F&F offer elsewhere ( friends and family) or funding an early exit based on secured lending through a source other than Sprout (depending on the actual reasoning for the refusal here).

Thanks Foggy, your fast responses are always appreciated!

I have around 28 months left @ £257. The Sprout offer resulted in a better p in the £ dividend than originally agreed so I was hopeful it would go through.

The feedback I've received from my IP is that both Cabot and Link flat out refuse a F&F offer based upon a borrowing, which I can understand. I had just hoped this would be over.

Family and friends no nothing about the IVA - I am ashamed and embarrassed by it as that wasn't how I was brought up, hence the mental stress - so that wouldn't be an option.

In my current job I am underpaid, but had been holding out changing jobs for a pay rise (and rejected offers) because I know I'll see none of the extra money. I'm an ambitious person but this is hindering me, causing me a lot of stress and it is a massive burden.

I appreciate that I got into this mess myself and ultimately I am the one to blame, however I ended up having to take the IVA as a result of a relationship where I was being taken for a ride in supporting someone else.

I don't know what else to do.

On the job front, don't refuse advancement based on the IVA issues -- they will last a few years, but the advancement will continue far beyond the IVA's ending. Refused offers now, might not be made again ! In the meantime you will benefit, in part, by any increase in salary as the IVA payment will only increase by 50% of any net increase in income, so you will get some of the hard earned rewards while still in the IVA.

I was under the impression that all of the extra income would have to be paid into the IVA? With that 50% in mind, a £300 net increase would mean a £150 increase in IVA payment?

I've also met someone that I'm 100% sure I want to marry. I wouldn't want to do this while in the IVA either. My life has become so much better and this is the last thing hanging around from my old life.

Honestly, I would take almost any option to get this paid off earlier and get my life back.

Just received the report from the meeting and indeed the decision was with Cabot. They hold 50% of the votes and I'd had 44% acceptance. A real shame. I thought this was my ticket to getting the normal me back!

Iv been holding on to the hope that once I reach month 30 of my iva I could hopefully get a sprout loan and end my iva early , I had my first annual review yesterday and when I asked my IP about sprout loans he told me that my creditors will probably not accept a f&f with sprout loans as it’s kind of going backwards getting more credit and paying more because of the interest , he said the only way out of my iva is a gifted f&f from a friend or family member , which is unlikely for me so I understand how you feel completely .

To be honest it is a little two-faced of the creditors in refusing to accept settlement by way of a Sprout loan whilst happily imposing the prospect of a secured loan to address equity release for those who own a property.

I can see the logic of not encouraging debt to repay debt --- but it is a bit rich when some of those creditors probably offer consolidation loans anyway ! What's good for the goose and all that .......

Foggy can I just get this sense checked, I've been looking at jobs since my F&F was rejected and I've found my original IVA proposal with these terms.

"the amount you will pay will normally be 50% of the any additional net pay over 110% of your monthly earnings on which your contributions have been based in the IVA."

In terms of an extra amount, I'll keep to round numbers. Let's say a net pay rise of £500.

£2000 current net pay, pay rise to £2500

10% allowance + £200

Leaves £300 - 50% of this I keep and 50% goes to IVA.

Contributions increase by £150.

My net pay I can save is £350?

In most protocol compliant IVAs the terms you quoted relate to extra income, meaning overtime or bonus payments. Permanent pay rises are simply dealt with as an extra 50% of the net increase. there is no 10% disregard. So, if you get a £500 per month net pay rise your IVA payment will increase by £250.

Now, traditionally, this would have been dealt with at the next annual review after the rise and the increase only levied after that review. But, increasingly, IPs are inserting an extra review to capture the rise earlier using 'loose' interpretation.

Ah ok I understand better now, thanks Foggy.

So that means I'll be able to save that extra 50% and they won't ask for it? That really settles my mind in looking for a new job.

Don't forget the 50% will only count for the remaining year of the increase, as soon as you do an annual review it all goes in the pot.

Fri Sep 17, 2021 10:20 amSteveUK wrote:

Don't forget the 50% will only count for the remaining year of the increase, as soon as you do an annual review it all goes in the pot.

That is not how I understand it, nor how my IP's operated it ( I was shunted from one firm to another, so had 2 IPs).

It is written that 50% of the net increase is added to the IVA payment from the month following the review after the increase happens. Both of my IPs allowed me to keep all of the total net increase from the date of the actual pay increase to the date of the following review.

I IP has confirmed that 50% goes into the IVA and 50% I can retain and save. I have asked them for clarification that I am able to keep that 50% for the remainder of the IVA.

Mon Sep 27, 2021 1:49 pmpanda_face wrote:

I IP has confirmed that 50% goes into the IVA and 50% I can retain and save. I have asked them for clarification that I am able to keep that 50% for the remainder of the IVA.

As it should be