4th year of IVA and I need help please

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jason843
Posts: 2
by jason843 » Wed Apr 25, 2018 8:59 am
Good morning,
I am in a terrible situation with money and I desperately require expert advice. I'm suffering severe depression because of all this and things are getting worse.

I'm currently starting year 4 of my IVA with payplan and have always made my payments. I became self employed so my net earnings have reduced meaning I can't now pay the required amount so they are needing to prepare for a variation meeting. This will mean lower payments (if accepted) but will add another 12 months years onto my IVA. Things are such a mess though.

I earn good money and have paid into my IVA and if it went its term as planned I would be paying back another £18k or so.

I am considering bankruptcy but here is my situation and concerns:

1.Out of my living allowance I have been paying my parents £240 per month for the last 2 years or so as payment for money I borrowed a longtime ago. This is outside of the IVA and they aren't aware of this as ive always made my IVA payments. If made bankrupt could the OR pursue my parents for all the money back ? This would be unbearable

2. When I originally started the IVA I had a rent agreement in my name for a house i rented. Couple of years ago I moved in my girlfriend (single mother, minimum wage). I informed Payplan of my change of address and they didnt request anything further. Although my payplan budget is broken down by rent, bills, council tax, water etc.. I simply have been making one payment to my Girlfriend of £750 per month which is basically my rent and priority bills allowance I then buy all my own food and stuff. How would this be viewed by an OR ? Also payplan are now asking for proof of rent expenditure ? What can I do ?

If its not enough that I have bought this situation on myself, i simply can't bear the thought of my loving parents and partner being made to suffer becuase of my money stupidity.

Please help.

thank you
Jason
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Lisa Thomas
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Posts: 6723
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by Lisa Thomas » Wed Apr 25, 2018 9:10 am
jason843 wrote:
Good morning,
I am in a terrible situation with money and I desperately require expert advice. I'm suffering severe depression because of all this and things are getting worse.

I'm currently starting year 4 of my IVA with payplan and have always made my payments. I became self employed so my net earnings have reduced meaning I can't now pay the required amount so they are needing to prepare for a variation meeting. This will mean lower payments (if accepted) but will add another 12 months years onto my IVA. Things are such a mess though.

I earn good money and have paid into my IVA and if it went its term as planned I would be paying back another £18k or so.

I am considering bankruptcy but here is my situation and concerns:

1.Out of my living allowance I have been paying my parents £240 per month for the last 2 years or so as payment for money I borrowed a longtime ago. This is outside of the IVA and they aren't aware of this as ive always made my IVA payments. If made bankrupt could the OR pursue my parents for all the money back ? This would be unbearable

2. When I originally started the IVA I had a rent agreement in my name for a house i rented. Couple of years ago I moved in my girlfriend (single mother, minimum wage). I informed Payplan of my change of address and they didnt request anything further. Although my payplan budget is broken down by rent, bills, council tax, water etc.. I simply have been making one payment to my Girlfriend of £750 per month which is basically my rent and priority bills allowance I then buy all my own food and stuff. How would this be viewed by an OR ? Also payplan are now asking for proof of rent expenditure ? What can I do ?

If its not enough that I have bought this situation on myself, i simply can't bear the thought of my loving parents and partner being made to suffer becuase of my money stupidity.

Please help.

thank you
Jason


Hi Jason

If you go Bankrupt now bear in mind any income contributions will last for 3 years so may be worse off than extending the IVA for one year.

Yes the Trustee could pursue your parents as they have been in receipt of preferential monies.

If you were not paying your parents back this money would you have enough to maintain your IVA payments at the correct level? I suspect this is part of the problem - you have a material expense which you should not be paying as your parents loan should have been included in the IVA.

Is there any way you can speak to your parents and defer the repayments until your IVA has completed?
User avatar
jason843
Posts: 2
by jason843 » Wed Apr 25, 2018 9:21 am
Lisa Thomas wrote:
jason843 wrote:
Good morning,
I am in a terrible situation with money and I desperately require expert advice. I'm suffering severe depression because of all this and things are getting worse.

I'm currently starting year 4 of my IVA with payplan and have always made my payments. I became self employed so my net earnings have reduced meaning I can't now pay the required amount so they are needing to prepare for a variation meeting. This will mean lower payments (if accepted) but will add another 12 months years onto my IVA. Things are such a mess though.

I earn good money and have paid into my IVA and if it went its term as planned I would be paying back another £18k or so.

I am considering bankruptcy but here is my situation and concerns:

1.Out of my living allowance I have been paying my parents £240 per month for the last 2 years or so as payment for money I borrowed a longtime ago. This is outside of the IVA and they aren't aware of this as ive always made my IVA payments. If made bankrupt could the OR pursue my parents for all the money back ? This would be unbearable

2. When I originally started the IVA I had a rent agreement in my name for a house i rented. Couple of years ago I moved in my girlfriend (single mother, minimum wage). I informed Payplan of my change of address and they didnt request anything further. Although my payplan budget is broken down by rent, bills, council tax, water etc.. I simply have been making one payment to my Girlfriend of £750 per month which is basically my rent and priority bills allowance I then buy all my own food and stuff. How would this be viewed by an OR ? Also payplan are now asking for proof of rent expenditure ? What can I do ?

If its not enough that I have bought this situation on myself, i simply can't bear the thought of my loving parents and partner being made to suffer becuase of my money stupidity.

Please help.

thank you
Jason


Hi Jason

If you go Bankrupt now bear in mind any income contributions will last for 3 years so may be worse off than extending the IVA for one year.

Yes the Trustee could pursue your parents as they have been in receipt of preferential monies.

If you were not paying your parents back this money would you have enough to maintain your IVA payments at the correct level? I suspect this is part of the problem - you have a material expense which you should not be paying as your parents loan should have been included in the IVA.

Is there any way you can speak to your parents and defer the repayments until your IVA has completed?


Thank you for the response

Yes I could maintain at the correct level if I werent paying them but I suspect its too late to go back to Payplan and say that I can now suddenly start paying the full amount. How could I approach it with them without evrything being thrown up in the air ?

Also, your thoughts on my current "rent" situation ?

Thanks
Jason
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J5453
Posts: 69
by J5453 » Thu Apr 26, 2018 9:42 am
Hi Jason,

I think it’s best to just be honest with your IP. The whole point of an Iva is to get you out of a bad place to a better place. It seems like all the juggling you are doing is causing you more hassle on top.

I think cards on the table is the only option otherwise it’s going to play havoc with your health as well.

If your parents are supportive then they should understand the pressure you are under. They can’t help if you don’t tell them. I’m guessing they already know you are in an Iva?

Also your IP maybe more understanding than you give them credit for re the rent situation. But you have to be honest with them when your income and expenditure changes so they can work with that so you have money to live on.

I was with Payplan and for all the faults that we pick with them, I’ve had good case workers who have helped with variations and bumps in the road.

That’s just my opinion.

I hope you get sorted. Good luck
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Lisa Thomas
Industry Expert
Posts: 6723
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by Lisa Thomas » Thu Apr 26, 2018 1:32 pm
I agree you should fess up to the IP - I cant see the contribution to household expenses being too much of an issue - £750 seems reasonable to me but you may need to back it up with evidence of the costs your girlfriend has to maintain.
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