Will my IVA fail

[slimshadybn25]

My wife and I are 16 months into a joint IVA.We owed approximately £100,000 caused by irresponsible spending.We initially had to pay £944 into the IVA but after our first twelve month review it was increased. We are currently paying £999 per month into the IVA. I dont understand why the monthly payment increased as my mortgage payments have increased by about £150 per month due to the rises in interest rates. I am almost certain my wages over the last twelve months have also been less than the previous twelve months so I cannot understand how the payments into the IVA have increased.
To make matters worse my wife has a bank overdraft of £1200 and a credit card debt of £6000.This wasnt disclosed at the time of the IVA as the balance at that time was nil but we have had to use the credit card just to keep our heads above water and now we are up to the credit limit. My wife also owes about £500 to a mail order catalogue which she uses just for clothes.
I have a bank overdraft of £500 which I have to use each month to survive. I also have a small £250 debt for a high street clothes account. I am worried sick that we could lose everything and that the IVA will fail if the IP finds out. We are desperately trying to keep our heads above water and we desperately want to clear our debts. I currently have a £145,000 mortgage and my property is worth about £200,000. I have to release about £9,500 in the final year of my IVA.
I am desperate for advice as to what I should do. Bankruptcy is not an option because as well as losing my house I would also lose my job.Please help!.

Slim

[iva experts]

Hi SlimShady,

The honest truth is that you need to contact your I.P and let them know as soon as possible. In an IVA it is clear that you are not suppose to take any credit, so you will have to be willing to face the fact that your I.P may decide to fail your IVA.

I dont understand how this has happened as in an IVA your monthly payment should be affordable, did you commit to a budget that was too tight? or did you find it hard to alter your lifestyle?

If your IVA does fail, you still have the option to do a Debt Management Plan or go bankrupt.

Best Regards,
IVA Experts
http://www.iva-experts.co.uk/

[slimshadybn25]

There is no way I can go bankrupt as I will lose my job.My IVA payments were affordable initially but it did leave us with a tight budget and with five rises in interest rates over the last few months and the fact that my IVA payments have risen by £50 per month my disposeable income has been reduced by a further £200 per month.We also initially found it really difficult to alter our lifestyles but we have now come to terms with that and are determined to be totally committed to being debt free. One other problem I have had is that I used to be guaranteed about 30 to 40 hours overtime a month but since the start of the IVA my overtime has been reduced to virtually nothing.I am now left with virtually no cash to spend each month.

Slim

[slimshadybn25]

What would happen if I failed to tell my IP ?

Slim

[jasperyogi]

Hi slim,
Was just wondering if your not getting any replies to this bacause its under the september postbag heading, not the new today section. Maybe worth copying and pasting it under the new today heading.

Why spend life worrying...when you can spend it smiling!!

[aguise]

Hi slim did your Ip not say why your payments went up? If your wages were lower and your mortgage rose then if anything you should at least have not had any rise at all. Was it due to overtime earned in the first year, if so you should speak to your IP and ask for a new I and E form and submit wage slips to show you are not earning overtime now. They may reduce it back.
I would think the only option would be to speak to your IP and try to sort something out, is there anyone who could help by paying these other credit debts off ? family.

Ang

Please visit my blog at http://aguise.blogs.iva.co.uk/

[slimshadybn25]

Im scared of asking for a new I and E form in case they find out about the additional debts. I am so scared they will fail the IVA and make me bankrupt and then i would lose my home and my job. Unfortunately I dont have anyone who can help me pay off the other debts so I am at my wits end.

Slim

[Adam Davies]

Hi
You MUST talk to your IP NOW.
Nobody wants your IVA to fail,but if it does you may not have an option of a DMP,contrary to what IVA Experts states,as your creditors have a right to petition for bankruptcy.
Put your hands up and your cards on the table and hopefully your IP and creditors will agree to a reduced payment and possible reduced dividend.I think that you will be surprised at your IPs response if you are honesy and open.
You are not the first people to have used credit post IVA and you won,t be the last.
Don,t hide away your problems any longer.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

Sound advice there from Andy. If you were my client I would be a little concerned, but it is not the end of the world and I would want to work with you to put a plan in action to deal with the minor default issues. It does seem very strange that your payments were increased by the IP!

I suggest you arrange a face to face meeting so that you can put your points across and ask his/her advice. This might mean a day off work, but trust me it will be worth it to put your mind at rest.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp