Monthly Payment

[r_c]

I recently posted regarding whether or not my husband's surplus income should still be included when working out my monthly payment even though he completed his IVA early. Melanie kindly responded saying that it shouldn't and that my payment should have been re-calculated to take this into account. I have sent back my annual review documentation along with a covering letter asking for this to be looked at and am currently awaiting a response (really stressful time at the moment). In the meantime, I wanted to give a bit more background to our situation.

When I was initially thinking about setting up an IVA, I thought that this would be something that I could do on my own as the majority of the debt was before we got together. However, when I looked into the ins and outs of an IVA I was advised that because we had a taken out a personal loan and had a current account (with overdraft) in joint names he would need to take one out as well otherwise the company we had the personal loan with would continue to pursue him for the monthly payment (he could have afforded to pay to the overdraft and his credit card but not the personal loan).

My proposal includes:
Halifax Personal Loan = £12,259.18 (joint names)
Halifax Overdraft = £100 (joint names)
Halifax Credit Card = £14,650.15
Capital One Credit Card = £6,290.12
Cahoot Loan = £8,820.56
Credit Card = £2,047.18
Store Card = £126.47

Husband's proposal included:
Halifax Personal Loan = £12,259.18 (joint names)
Halifax Overdraft = £100 (joint names)
Capital One Credit Card = £200

I had car finance with GE Capital for £8627. This was not included in my IVA as it was finance (supposedly) so I continued to pay separately.

Total unsecured debt for me was £44,293.66 and for husband was £12,559.18. It states on the bottom of both proposals which 2 debts are jointly held (Halifax Personal Loan & Halifax Overdraft). Once fees had been added my payment came back at £362.05 for 60 months (0.31p in £) and my husband's at £175 for 60 months (0.38p in £) giving the 2 joint creditors a payment of 0.69 in the £. The first payment for both of us was August 2006.

It was brought to light in May 2007 that the car finance should have been included in my IVA as it was unsecured and I was instructed, by letter, to increase my monthly payment by the said amount (£235) therefore making my monthly payment £597 for the remaining 51 months. Even though the finance would have been paid off before the end of the IVA I didn't have a problem with this because it would mean the remaining creditors getting more money back, although I didn't understand why my payment was increased by the full amount. Shouldn't this have gone back to the creditors with a revised proposal (pence in £)?

My husband settled his IVA in July 2007 through a gift from his mother paying £6925 in total (final documents received in December).

From reading various threads on this Forum about people's situations I started to think about my own. I continued to pay my monthly payment at the said amount (£597) which is both incomes added together minus expenditure. You will also see in a previous thread that I asked Melanie what proportion of the monthly expenditure I would be expected to pay. Melanie suggested that it should be 42%. Our monthly income is £2546 (£1087 me & £1459 husband) and our expenditure is £1775 - this is taken from the i&e sheet and already has contingency, dental etc included. This also includes child maintenance for my husband's son. Should I take this off when working out my expenditure? I work 42% of the total monthly expenditure to be £745.50 (or £698.80 if you don't include child maintenance) which if you take this off of my income it would leave a surplus of £341.50 (or £388.20) available for my IVA.

I understand and have no problems what-so-ever in re-paying my creditors back as much as possible I just don’t understand why all of husband's surplus income is still included. It seems that ending his IVA early has been a complete waste of time! He still has no spare money left and we are finding this very difficult to resolve. This has been an underlying issue between us since he ended his IVA early and I see that the problem is only going to get bigger if not resolved. We only got married in May of this year - Registry Office Ceremony then a few drinks with family and friends (simple but really nice). Both families paid for our honeymoon as a wedding present which was really good of them! I don't want this to come between us but can see it's only going to get worse. At the moment he is working all hours to build up enough money to take his son on holiday with the rest of his family which I feel really guilty about (he works permanent nights as it is so he is absolutely shattered). If it wasn't for me he wouldn't be in this situation.

Hopefully this will be resolved during my annual review.

Thanks for listening!

[Wizzard]

Hi RC

Hopefully and expert will pick this up now I've bumped it back to the top of the heap. Sorry I couldn't be much more help.

[r_c]

Hi RayScollen

Thank you very much.

all the best, r_c

[orchid5]

Gosh there are so many ins and outs to this, i think like Ray has said it would probably be best for one of the forum experts to pick this up and answer your questions.

You have both been supportive of one another thus far rc and im sure that if you get through this then nothing will come between you.

Tc and be safe, good luck.

[Viki.W]

Hey r_c, I remember your previous posts and it does seem unfair. I really do hope you sort this out, fingers crossed for you. X

[MelanieGiles]

You should not still be paying your husband's share of the disposable income. To be frank your IVA seems a complete hotchpotch, and I thik it is time for a meeting with your IP to sort out what you should actually be paying.

[Soulgrowth]

Hello RC

As Melanie says, your whole IVA situation seems quite a hotchpotch ... probably caused by so many different and changing aspects.

This is the problem with life, it doesn't stand still and things change. It would seem like your IVA has reached a stage when it can't see the wood for the trees.

I think that if I was in your position I would be vehemently requesting a face to face appointment with your IP for your IVA to be reassessed, taking into account the life changes that have occurred for you and asking for a clear explanation of what you were paying for and why.

Debbie

[r_c]

Hi all

Thank you all very much for your replies and kind words - this Forum is a god send [:)]. I thought it was just me not understanding the process properly but if you think that this is not right Melanie, then I will definitely ask for a meeting with my IP. How does this work when they are based in a different part of the country to me? Do I have to go to them or will they come to me?

Many many thanks once again for your help it is reassuring to me knowing this situation is wrong and it's not just me!

r_c

[r_c]

Well, I've just phoned and spoke a member of staff dealing with my case and he doesn't agree that my payments should be lowered. I asked why and was told that because we live together all surplus income should be included - I am contracted to pay back 38% of the debts. I told him about my concerns about the IVA failing and possibly my marriage and was told that they didn't want this to happen either but if it did there was already provision for bankruptcy proceedings (I don't want that to happen). They have emailed my supervisor for his advice but he is on holiday at the moment so won't get an answer until next week.

Really not looking forward to the weekend now.

[Viki.W]

r_c, this is awful. Maybe when your IP is back from holiday he will see sense. Don't give up yet, hang in there and speak directly to him when he gets back. Thinking of you. X

[debtmountain]

Hi r c,

What a terrible situation for you, hope you get things sorted next week.

xx

[Wizzard]

Fingers crossed for you RC ... keep pushing and don't back down.

[MelanieGiles]

I personally would get this looked at independently if they dig in on this point, as it is difficult for any of us to give clear advice on a public forum.

[r_c]

Hi all

Thank you very much for your replies.

Melanie, would I be able to contact you direct about this for your opinion?

r_c

[LoneRanger]

Hi R C

Im sure if you sent Melanie an enail direct through her website she would be happy to help