www.iva.co.uk

I spoke to my case manager last week as I am struggling with my IVA payments and she was going to send me a new income and expenditure form. I've been trying to decide whether it's worth my while to fill it in as one of my modifications is that I can't have any variations for 24 months, but when it hadn't arrived I rung up and they are sending one out to me today. I will go through my income and expenditure carefully and send it back, but I was basically told there was nothing I can do.

When I was on the phone, my case manager also told me that even though I am struggling, I will have to pay half of any pay rise into my IVA until my annual review in October. I was hoping I might be able to keep that as even £30 would make a difference to me at the moment. I have gone through my figures, and this is what I have come up with, although this is only provisional:

Salary £1285.00
MOBILE £40.00 I've got 16 months left on my contract by might be able to lower this figure in June
CONTACT LENSES £10
BOSCH £12.00 Fridge freezer insurance finishing in June
RENT £200.00 Paid to my partner towards mortgage of £566
FOOD £300.00
COUNCIL TAX £50.00 To be confirmed - this is last year's figure
ELECTRICITY £25.00 Half of monthly payment, no gas at property
TELEVISION LICENCE £5.00
HOME INSURANCE £7.00
PETROL £100.00
ROAD TAX £10.00
CAR MAINTAINENCE £50.00
CAR INSURANCE £30.00
CLOTHING / HAIR CUT £50.00 Need to look smart for work
MEDICAL £30.00 Glasses, dentist and occasional osteopath due to ongoing back problems

All bills are in my partners name, and although we have Sky, landline and broadband this is all paid for by him.

I know I haven't got a hope of getting a variation, but please can someone tell me if that looks reasonable. If it is, I will put it forward and hope for the best. I feel that this is what I need to actually live rather than exist, although I know I won't be able to do an awful lot about it. Also, if anyone can think of anything I've missed off, please can you let me know!

Thanks in advance for your help!


Onwards and upwards!!!

Hi Skippy

So you feel that you can afford to pay payments of £375 per month. What are your current payments and what dividend was agreed at your creditors' meeting?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

And here is the problem! I currently pay £459 per month and the divided is 27p in the pound. I know this means I have very little leeway, even if I could get a variation.

Onwards and upwards!!!

Skippy

If I were your IP, and you presented this to me, I would firstly talk to the creditors who put forward the modification about no variations to see if they would be prepared to play ball - using the threat of bankruptcy as a carrot.

It is questionable whether such a modification is actually enforceable, as by calling a variation meeting - you could actually seeking to remove that clause. Stupid I know, but I am actually itching to do one for my own clients mjust to test the water. A very well respected solicitor friend of mine, who writes books about IVA's thinks the clause is barmy!

I don't personally get this modification very often, and we rarely have to vary our own cases - but I suspect this will become more common in view of the strange attitude of creditors at the moment with regard to income and expenditure.

Ask your IP if they are prepared to speak to those creditors on your behalf to see what the reaction is - or talk to them yourself.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Thanks Melanie. I will wait until I get the form, get it filled in and see what happens - I'll keep you posted.

Onwards and upwards!!!