www.iva.co.uk

I've had an IVA for the past 2 years & have never missed a payment. The payments started at £370 & when my wages increased last year became £419 (50% of my increase). I even pay 50% of all bonus to them which has been an extra £500 so far. My rent is really low as where I live is privately rented and in poor condition i.e. no heating, holes in the roof, damp etc. My rents only £240 at the mo but my landlady is selling. My new rent will be about £500. Will my payments reduce or can my creditors refuse? If so what happens? Any advice welcome. From Charlotte

Hi Charlotte,
I think you should contact your IP to discuss this change in circumstances as soon as possible. Your IP and creditors will not want your IVA to fail and it seems you are being entirely reasonable in wanting to live in decent accomodation.

Andrew Graveson
Independent Mortgage Broker & Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk

This IVA is going to need to be varied Charlotte, but £500 for rent does sound an awful lot for a single person. Are you sure that you could not get anything any cheaper - at least until the IVA has concluded. What part of the country do you live in?

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

I wish £500 was an awful lot, you couldn't get anything in London for that, be more like £800, I live just outside London and commute in every day and pay £635 which is very cheap

Pinkfrisky,
I share your sentiments.London is the most expensive place to live as compared with the world cities. £500 is VERY resonable for a reasonable area.

The problem is one cannot plan these budgetary changes into your IVA I/E, and so things like this happen you need to rely on creditors to say Yes,to lower payments or get another job/overtime to compensate for that increase. You certainly don't want to end up been told by your IP after 5 years that your eventual dividends are short of in pence per pound or to do another 6 months to make up for the short fall due to lowered payments.

I hope creditors/IP take a serious look at each and everyone's cirumstances like yours and demonstrate flexibility.You are already chipping in your 50% of extra income

keep us posted. I am keen to hear the outcome as others are......

Hi
As already stated speak with your IP and explain the situation,make sure that you get to speak with your actual IP.
As Andrew has said nobody wants you IVA to fail so I'm sure that both your IP and creditors will help. They could reduce your IVA down to the original amount
£370 without a variation meeting and this would give you an extra £50 towards accommodation.
Please keep this forum posted

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

In terms of Housing Options i was going to suggest... a house share.
Quite frankly i dont think you should be living somewhere that is not up to standard! Which explains why she is selling.
Depending on your personal circumstance you may be eligabe to apply under homelessness legisaltion to the Local Authority.

lulablog.blogs.iva.co.uk

Rent in my area is £500 for a 1 bed place. I live in kent and people commute to London from my area so rent is higher as a train line into London is only 40 mins. I work 40 hours a week and am training to become a contact lens fitter in my spare time and my course takes up 20 hours a week so getting a 2nd job is not an option. There are not enough hours in the day! [V] What happens if I tell my IP about my circumstances and my creditors refuse a decrease in payments? Can I struggle and try to find the money of my current payments still, or is it too late by then? Can they make me bankrupt? I was also wondering about getting a new place as most letting agents credit reference you. Will I be refused a new home as I could fail referencing? [:(!] I'm lost as to what to do at the moment. I'm trying to better myself to earn more money. I should qualify in 18 months time and then they will have the whole last year on my IVA with a big pay increase to contribute. Help needed please....[:I]

No - you should not have to struggle as a result of unforced additional housing costs. Providing your revised payments still return a reasonable dividend, I cannot see that your IP will have a problem in proposing a variation to the original terms. And at the end of the day, if bankruptcy is your only option at least you enter it in the knowledge that it was not your fault that the IVA failed.

There are a lot of private landlords who do not credit check (I am one of them!!!) so I am sure you will get sorted with a new place to live. Make sure that your IP knows about your OTE when you qualify, as this should be mentioned in the variation proposals.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

Its all negotiations and making a sound commercial case in the variation meeting. Its anyone's guess as to what might happen. I think your Creditors will maybe meet you half way with the enticemtment for improved contributions in the future.

The only think I am sure about is you are allowed I think 3 miss payments after 24 months in an IVA and then compensate for them in extra payments

Thanks for the advice. I'll speak to my IP and keep you posted. [:)]

Pinkfrisky..If your out working so much why dont you get a flat/houseshare?? its pointless paying a fortune for a place your never in!!
I rented my spare room out through www.flatmateclick.co.uk . ive had 3 different lodgers over 2 years and they have all been great...they even got heating and a room without a view of the sky!! )