what happens when the cost of living rises?

[kah]

I've been reading a lot of messages where people are saying that they are having problems with paying their IVA costs. Any of us in an IVA with a mortgage will have experienced a recent mortgage increase - the cost of heating has gone up - petrol - television licences due to rise - general cost of living. In this sort of economic climate it's common that any wage rises don't keep pace with these cost of living rises. What happens to IVA payments? - This isn't something exceptional, it's just life.
I'm sure Melanie will say that some sort of contingency money should have been allowed in the first place, but reading the messages on this forun, this doesn't seem to be the case.

[Oliver]

Hello Kah

You should discuss any concerns with your IP either now or at your Review Meeting. If your salary hasn't increased with inflation and you are struggling to deal with increased living costs your IP may be able to revise your income expenditure budget. Also if you don't have a contingency expense you may be able to use surplus funds from budgets which you don't maximise each month like clothing, car maintenance etc... But I would stress that you must talk with your IP asap if you are concerned that your income and expenditure budgeting is not sustainable.




Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[kah]

Yes fine - but what about the responsibility of the IP in the first place - has anyonen out there had this matter brought up by their IP before committing to their IVA?
I honestly don't have contingency money in my monthly budget (£15 for clothes and £15 for entertainment is the only "spare" money and it goes on ;haircut, shoes and a once a week swim). I'm not complaining about the lack of social life etc it just seems wrong that people have such different setups seemingly ased on the quality of their IP in the first place rather than anything else.

[MelanieGiles]

Kah - you know my views on contingency monies, so I won't labour that point again.

Your budget is extemely tight. The clothing figure is very low - was this figures suggested to you by your IP, or did you think you could manage on an annual budget for clothes of £180?

Many of my clients call me from time to time when they are in difficulties, and in 95% of the time I and my clients are usually in a position to work things out with them - possibly by delaying one or two payments, or agreeing to a temporary reduction. For this I can use my own discretion as Supervisor.

Where a more serious problem has occured, then we generally ask creditors if they will agree to a variation of the terms.

I agree that there does seem to be a lot of differing opinions in the insolvency marketplace at the moment, as to what is acceptable, and I would urge all parties thinking of proposing IVA's at the moment to fully research the nature of the commitment and get second and third opinions from professionals in order to compare notes.

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

[neverending]

Kah
Do you have the opportinity to earn overtime payments.If so,with a fair IP ,you can use ALL this extra money to off set increased living costs instead of only keeping 50% of it.
If you are unable to increase your income then you will need to ask your IP for a fresh income and expenditure form and should be able to agree a way forward.
You,your Ip and your creditors WANT your IVA to succeed.