We've been in our IVA for 32 months and successfully made payments. Our baby is due at the beginning April and we have just received an email from GT to say that they cannot approve a modification to our IVA as our I&E shows a negative surplus with me going on maternity leave and we need to contact them to discuss a feasible solution - just so i can prepare myself as I've got to be the muggins to ring them invcase they say something to hubby and he then doesn't ask the right questions and if I'm prepared at least there is less chance of the pregnancy hormones going off the scale in the office!!!
As far as I see it we have 3 options but please someone correct me if I'm wrong:-
1. Our creditors accept what is in the pot and call it a day (not very likely)
2. Our IVA fails and we have to try and do a DMP but with exceptionally very little to offer our creditors and with the knowledge that I am going to be harrassed almost everyday.
3. We wait for our creditors to make us bankrupt.
unfortunately as I am the one who deals with our finances in our relationship it has fallen on me but I am worried as I don't want too much stress particularly during the latter weeks or pregnancy.
Any advice will be gratefully appreciated.
Lou x
PS Unfortunately we don't have any relatives who will be able to provide us with a lump sum in order to make a F&F otherwise that would have been another option!!!
hi sorry to hear of your problems i am in a similar boat as my wife has lost her job we are 31 months into our iva but i cant see them reducing enough for us to be able to continue
surely they could come up with an option for you as in reduced payments whilst you care for your baby and the option of catching up with slight increased payments or possibly they could extend your iva by so many months i hope you sort it out
I was going to leave until Monday afternoon to ring them as the boss is off but I now just want to get my options then I can use the weekend to sort through with hubby what is our best one so might do it later on this afternoon.
Unfortunately there is no way we can offer any increased payments once I return to work as our budget has been so tight for the past 3 years.
Are you intending on returning to work when the baby is born? And have you worked out how the advent of the little one will impact upon your finances? It might be worth seeing if you could negotiate a payment break with creditors to cover the period of maternity leave, and perhaps catch up those payments at the end of the IVA?
I am intending to return to work but as yet don't know if it will be full time or part time as I have yet to work out the cost implications of the options ie childcare costs for a nursery, petrol costs and if I actually bring any money home at the end of it. I appreciate that there are taxfree childcare vouchers but I need to weigh these up against any child/working tax credits received and work out which will be the preferred option.
My concern is that should we manage to negotiate a payment break of say 9/10 months we still would not be able to revert back to our original payment amount so still might have to go through all this again come this time next year.
GT would put forward a variation to cover all eventualities to avoid that, I feel sure - but why not try and have another chat with them to see exactly what options they recommend.
I know your IP extremely well, and would be happy to alert them to your case if you want to send me your details. But better to just speak to them directly in the first instance.
These type of situations are not unique and as Melanie's says you should speak to your Supervisor (IP) to see what can be done. It may be a payment break or settle for whats's is in the pot now - there are potentially a number of solutions. But please posters always discuss with your IP first.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
I rang them on Friday afternoon and spoke to a member of my IP's team who basically asked if over the weekend we could either reduce our outgoings (really not possible) or see about additional income. I did explain that we may or may not be entitled to working/child tax credits but I had no way of knowing what we would be entitled to, if indeed we are entitled to anything. He said he would speak a more senior person then give me a call this afternoon. So watch this space...I will let you know the outcome.
Lou x
PS I have tried going onto the tax credits website but it only works it out up to 5 April so not much good!
Lets hope they come back with some good news Louisa.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
No - I sent them an email about 4pm yesterday but someone did get back to me today. He said that they would take the child benefit into consideration which would reduce our negative surplus by half and that my hubby was earning more on his payslips than I had put down. I did explain to him that hubby occasionally gets a bonus if the area performs well but it is unlikely he will receive anything extra this year as no bonus was made in December! This he accepted. He then mentioned benefits to which I pointed out what I had written in my email was that until I get through to someone at the benefits office I cannot ascertain what my entitlement wwill be, if at all, from April 2009 (online only does up to end of this tax year).
He then mentioned that perhaps they could hold for a few months until we know exactly waht entitlements we can receive before submitting a modification and in the meantime for us to try and make up arrears (partially made Decembers payments as we brought a buggy and car seat) but when the brown stuff hits thhe fan and your car doesn't start - battery fine - and you have no breakdown cover llife jsut feels very much against you. I'm trying to remain positive but it is getting harder - especially with these pregnancy hormones!!!
I guess what they are suggesting is realistic enough but am worried that if they are using child benefit as income then I only have an additional £50 food and housekeeping a month for nappies wipes etc.
If hanging on to the IVA us really important to you, why not ask them to seek a payment break of six month to see how your finances fare at that time, with the provision that if IVA payments remain unaffordable they IVA will be brought to a conclusion. It gives you breathing space, and delays a closure if there is a change you could start paying again.
Thank you Melanie - I will put this to them and see what they say. I know that we would rather see the IVA concluded one way or another rather than failed.
