We Cant really afford this IVA...

[ClockworK]

Hi all
First of all, thanks for all the posts and advice, it really helped us get our IVA sorted out. We have made 4 payments up until now, but we are finding that after the IVA payments we are left really short of money each month. I am now wondering if maybe we should have gone BR instead.
Is it possible to go BR after only having an IVA for such a short time ? And what would be the best way to proceed ?
We are paying 265 pounds per month at the minute off debts totaling 20,000.
Any advice/help ?
Cheers all and keep up the good work.
Vance

[Skippy]

Hi Clockwork, I'm sorry that you're having problems with your IVA. It is possible to go BR after a short time - I only made 4 IVA payments myself. Have you spoken to your IP about the problems you are having? I think in new IVAs they can reduce the payments (I can't remember how much by) without calling a creditors' meeting. Have your circumstances changed since you went into the IVA, or were the payments too high to start with?

[ClockworK]

Hi Skippy,
Thanks for the reply.
I have not spoken to our IP as I did not know they could change the amounts we are paying. Our circumstances have not changed, it just seems that we are having less money each month left over to live on. Maybe its just the same for everyone when starting out on a IVA, we just need to penny pinch every penny, so to speak.
Just a thought that if we are paying 265 to the IVA then is it the same amount that we would have to pay monthly if we went BR ?
Cheers
Vance

[indebtforever]

hi read skippys blog on BR you will get a good insight to it all

[Skippy]

You would need to check the terms of your IVA but I remember Melanie mentioning the new protocol.

I think everyone is feeling the pinch with the way things are going up so we can all sympathise with you.

If you go BR the OR only takes a percentage of your disposable income rather than all of it, and only if you have more than £100 spare. It ranges from 50% to 75%, and if you have a look at my blog there is a table showing what you be likely to pay.

[plasticdaft]

Can i ask if you have property with equity??

[Emily]

BR is probably better you I think.

An IVA isn't the cure all in debt matters....its hampered by high returns[unrealisticly obtuse] and RPI inflation of 5% and rising. The public sector lot have yet to settled on their pay rise City analyst have said inflation will go sky high if more than 2.45% is allowed on increase in pay

Inflation makes your money buy less and in an IVA the RPI of 5% feel like 10%

[Skippy]

It does depend on whether Clockwork has property or any other assets that would be at risk in BR.

[plasticdaft]

Not all iva's offer high returns. 25p is not unheard of,and some people prefer iva to BR as it makes them more comforable that they are paying back what they can afford.

Some people would prefer BR but its down to choice and advice given.

[Emily]

25p to the pound in 2008/09.....even if its granted the I/E will be very tight...most likely the IVA fail. There are folks here jacking it in giving more than 25p to the pound.....

[plasticdaft]

surely if the amount going into an iva is relative to what you can afford,a 25/£ iva has as much chance of success as a 50p/£ one. Granted there is more leeway if a greater return is offered to start with.

[indebtforever]

i think there is a good percentage of failure from over the top ip`s who insist on quaterly reviews looking for every opportunity to get the last penny out of you!!!!!!!
get onto your ip tell him its either a drop in your payments or you have no choice but BR we are talking about pulling your hair out in the 4th month 56 to go i pressume you have offered about 50p in the pound?I am surprised an iva was the way to go and a dmp wouldnt have been better if interest could have been frozen on a 20k debt as you are paying back £15,900 in 5 years

[jojo]

We are paying 23p in the pound at the mo. Originally it was 25p but 'due to an increase in creditors claims' it has gone down. We have had our iva for 2 1/2 years and it was hard at first, but we got used to budgeting and now with hubby getting payrises etc we will soon be raising our payments. He previously had a payrise, but we didn't have to increase our payments due to increased cost of living, which we proved to our IP with receipts etc. We were advised to go bankrupt, but we didn't want to so we stuck to it.

[kallis3]

Your IP can usually do a variation of up to 15% without calling a creditors meeting.

Emily, I'm one of the public sector lot, and if they give me 2.45% I shall be very pleased with it. As of yet, I've heard nothing at all about any offers.

[MelanieGiles]

The key to this matter going forward is to work out what you can actually afford to pay - which of course is what should have happened before the IVA was put forward. Were the figures based on your own budget, or were you told what you could and could not spend - in my opinion a recipe for disaster, and something that is bound to create more IVA failures in the long term.

Take your IP's advice, and if you cannot find a way forward give serious consideration to bankruptcy proceedings.