what would happen I were to move out

[crazylegs]

Hi,

Im into the second year of my IVA at present. At the moment I'm 28 years old and am still living at home with my parents.

My income is around £1000 a month of which £200 goes out in an IVA. I'm looking at moving out into my own place maybe next year or the following year as I'm starting to get a bit too old be living at home with my parents. I only pay £120 rent a month to my parents, that includes food and everything.

I was just wondering what would happen with regards to my IVA if I were to move out. I'd be renting accomodation which would be a flat, not a house. Under terms of the IVA would I be able to get the amount I payback per month reduced, or will I have to wait until the IVA finishes which will be when I'm 32 before I can realistcially move out?

Many thanks for your help.

Regards

[Adam Davies]

Hi
Realistically your IVA will not be viable if payments were to be reduced below £200 due to you moving out.Unless your income increases you have a choice of hanging on until your IVA concludes or declaring bankruptcy before moving out into rented.
The other option is to rent with someone else and keep your costs down enabling ou to continue with your IVA payments
Good luck

[MelanieGiles]

How did you think you would manage this when you entered into the IVA? Did you envisage staying at home for the full five years and, if not, how did you plan to fund the increased rental payments when you eventually moved out?

[AlanO]

Regretably I see a lot of these situations where the IVA factories have not fully reviewed what people living with parents asperations are.

Hind sight is a marvellous thing but if you had talked with an IP like Melanie I am sure she would have asked you of what were your future plans were at the time.

However it may not all be lost and if you approach your Supervisor they may be able to agree with the creditors for a variation ( extension of period ) to accomodate any rent increase.

If not and you do move then it is likly that the IVA will be breached and you will need to look at alternatives.

all the best alan

www.debtdr.co.uk

[Reviva UK]

Hi crazylegs

Thought it might help if you could post your expenditure so we can review.

As I understand it you have income of 1,000

Expenditure of :
120 board & lodging with parents INCLUDING Utilities
200 iva payments

Assumption
35 mobile phone
100 petrol
40 car insurance
15 car tax
25 servicing & mot
25 clothes

etc etc

if you go through the maths carefully you may find that you can move out but it mightbe a shared house. This would allow you some indpendance but still maintain the IVA which would be a real pity to forefit now.

If you need an Income & Expenditure pre laid out on EXCEL I would be happy to forward one to you. This would help you in the calculation of what is possible.

Take care