Kazza I think the problem is that whether or not you will have to take the extra £50 from your "contingency" fund is neither here nor there to your creditors......they will want every spare penny, minus the CCCS guidelines that they will allow you to keep.
Unfortunately savings for a "rainy" day dont come into the equation.
If/when petrol prices/utilities et al rise as your IVA is in progress would this not be taken account of in your ongoing I & E?
Last edited by Pennyless on Mon Sep 21, 2009 3:14 pm, edited 1 time in total.
I came into this world with nothing and still have most of it left!
Everyone needs a contingency fund especially if they are entering a six year IVA. Household appliances need replacing, homes need maintained as do vehicles, friends and relatives get married, children play sports and get opportunities to go on trips etc.
Clients are expected to live within a budget in order to have their IVAs accepted but the amounts being demanded by creditors are oppressive and much more than would be paid in bankruptcy. If these payments are set too high at the beginning there will be variations and failures which is of benefit to no one.
I totally agree Michael. I'm forever playing catchup due to a bad start in my IVA and never seem to accumulate a contingency fund, so far I've survived but not without the understanding and compassion of my IP.
I'm hoping 2010 for me is the year I don't have to contact my IP for trivial matters and I will have the contingency to sort myself out.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Very much agree Micheal....everyone does need a contingency fund, however, I think in our positions a contingency fund is very much a luxury that the creditors cannot or won't afford us.
I came into this world with nothing and still have most of it left!
Yes the increases would be included in I&E. But I&E doesn't get assesed until 12months after the IVA has started. It only takes 3 missed payments for the IVA to fail, this could happen before the I&E is reassesed.
I'm sorry Pennyless, a contingency is not a luxury and shouldn't be viewed as such by anyone. Viewing it as a luxury therefore means that having your boiler repaired (for example) is a luxury. No-one should be expected to go through a 5 or 6 IVA hoping and praying that nothing unforeseen happens.
Would I lose my house if I went BR. its £7000 in negative equity. Also my partner has a car on finance its worth £8000. would they take that, its no gain in money coz effectively we don't own it
A contingency fund is vital and I'm testament to that (read my blog) anything that can go wrong just about has and my IVA has only survived the drama due to a caring IP.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Skippy then whats the best way/method to get a contingency factored into our expenditure...it would be interesting to establish how others went about in the initial stages of the IVA in obtaining this?
I came into this world with nothing and still have most of it left!
If you have a trusted friend or family member who can buy the beneficial interest in your home (£1 + £1 + £211 fees) then you wouldn't lose it.
I'm not sure about the car. The OR may be happy for your husband to make the payments, but a lot will depend on the terms of the HP agreement as some have a clause stating that the vehicle can be repossessed in the event of BR.
Lesley, I thought of you when I was typing about the contingency - I hope 2010 is a better year for you x
I didn't have a contingency in my IVA (which is a reason I think it's so important) so I'm not the best person to ask. However, if you put it down as part of your I & E then I'm sure your IP will factor this in.
We always allow for miscellaneous or contingency and advise our clients to operate a separate savings account. Each month we recommend monies are paid into this account to meet any unforeseen expenditure. Each person has a medical, dental, optical, car maintenance allowance etc but no one pays the same amount each month for these things. The allowances are therefore saved up until needed and we have no interest in taking any of that money from our clients at the annual review stage.
Ideally, if clients have a contingency fund their IVAs will run their course more smoothly and reduce the risk of failures or expensive variations.
