What should she do?

[worryhead]

I just found out a friend from work has entered an IVA and is in the same situation as me, She is paying £200 a month to her IVA and earns £960 per month after tax, she was living at home but recently got herself a rented house, her expenditure is now £800 without food or contingenses, this leaves her £160 a month to pay for food n IVA she is so scared because she has only made 1 payment so far in her IVA, she has not called her IP yet cause she is worried they think she did this on purpose. but she got offered this house after years on a waiting list and it was to good to turn down. what will happen now? it scares me cause i live with a friend at the moment n if i move out within 5 years and cant afford payments whats the alternative?

[MelanieGiles]

Hi worryhead and welcome to the forum

I think that your friend needs to discuss this matter with her IP as a matter of urgency to see if it is feasible for her payments to be reduced.

[Oliver]

Your friend should contact her IP as soon as possible to discuss the feasability of reducing her payments to an affordable amount. However, if she only has £160 for her food and potential IVA payments I can't see that she will be able to afford to continue her IVA. In this instance she may have to opt for an alternative debt solution such as Bankruptcy or an informal plan.