First post - Need a bit of reassurance

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Post by samseasam101 » Mon Mar 15, 2021 1:52 pm

Id like to start by saying that I am extremely grateful for this forum and the types of questions being asked.

I'll try my best to outline my current arrangement, and it would great if some of you could reassure me or advise me what is happening is correct and in-line with the usual practise of things.

My IVA started in MAY 2020. At the time I was living with a mate and we were both going halves on rent and bills etc. When setting up my IVA my income/expenditure included his income which was obviously his half of the bills. Covid then hit the country hard and he started loosing hours at work, which in turn meant I had to pay out for more things. This is where my original income/expenditure that was agreed, sort of went out the window.
I never missed a payment over those 3 months though. I budgeted well and made things work.
Come November, I move into a new address with another friend. At the time I told Creditfix (who my IVA is with) about my change of address and also a change of vehicle. (Again, my vehicle was not included in the IVA as an asset, as it was only worth £1k) the new vehicle I use isn't actually owned by me. I just borrow it, it does mean I still have to pay for insurance and the running costs, as I would have done with my previous car.

I told Creditfix about these changes maybe towards the end of November 2020 (IVA started in May 2020)

In January I was aware that my income and expenditure had changed slightly, so I raised this with Creditfix.
I was told to complete a new income and expenditure form with the new bills and my new living arrangements etc.
The difference now is I am also earning slightly more then what I was when my IVA was agreed. My IVA was agreed when I was earning £1556 p/month. I am now currently on £1730 p/month, but thats only literally in the last month its crept higher. Its now fixed and will be for a while. I know your entitled to 10% and then anything over that is split 50/50 to go into the IVA. My worry is, after seeing 3 months bank statements and 3 months pay slips, Creditfix may see my salary increase and suggest I know owe them more money.
From what I can calculate, even if I earnt £1730 for 2 - 3 months , then technically I am entitled to £150 of that (as I was on £1556) so its only the £30 per month, which would be split 50/50. So I would maybe owe an extra payment of 2 x £15 for two months, so maybe £30 - £45 I owe? Is this correct? And will all of this be ironed out in my annual review?

I originally went into my IVA because I was stressed and worried about not keeping up with loan debts.
I never originally missed a loan payment, until I had entered into an IVA. Looking back, I sort of wish I spoke to more friends and family members to borrow money to pay it all off in one go. Which is why, I am now thinking of doing something similar with my IVA. I have paid £1770 in 10 months with a little over £9k left to pay.

I know my IVA will stay with me for a long time, but I am just so stressed and worried all the bloody time that my IVA is going to fail!! Even though I have done nothing to breach my agreement, I just worry so much after some of the reviews with Creditfix.

I have 49 payments left of 60.

60 x £177 = £10.620 (originally debt was around £15.6k) so apparently (very) rough 32% reduction.

I can go into more details if needed, but from that base outline, does that sound about right?
I found in my documents I was paying 46p to the £1? (This bit does confuse me the dividens etc) but is 46p to the £ a good amount?

My past creditors include, MONZO (loan) and the rest where just overdrafts (like Barclays I was upto -£2k just in my overdraft) and then a few other over drafts. The biggest unsecured part of my IVA is my MONZO loan.
I just recently got a annual statement and the interest is being charged at £40 per month..
Do I just ignore this interest rate? I have heard that if your IVA fails then you are liable for all the debt and the interest! Which is massive thing that I am worrying about, even though things have been smooth so far, with very little communication with Creditfix. I only really call them to make sure my details are up-to-date and that each call has been registered and documented to make sure I am showing willing to make sure my IVA does not fail.

Sorry for the extremely long post. I have been following this forum for months. I just never had the guts to make a post. I see FOGGY is always answering questions and I honestly value anybody and everybody's help! I have 4 years left, so a long way to go! Thank you!


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Post by Foggy » Mon Mar 15, 2021 2:42 pm
Creditfix do take a bit of work to communicate with and do some things their own, unpredictable, way --- but, as long as things go smoothly, you will be OK.

On the payment increase, you have got it slightly wrong ---- then 10% 50/50 rule you quoted applies to overtime and bonus payments. Proper pay rises are a 50/50 split of the net increase in income, so your regular payment will increase by this amount. But, they should take into account any increase in expenses as well, as long as they stay within guidelines and are not too different from last year.

Regarding your last housemates income being taken into account --- that would only have been to check that he was paying his fair share of expenses. not to pay any of your debt !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014


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Post by samseasam101 » Mon Mar 15, 2021 3:09 pm
Thank you for getting back to me!

You are righting thinking I got the 10% 50/50 side of things wrong, but with a change in living arrangements and a change in job means my income/expenditure work out to be pretty much exactly the same as it was previous, meaning although my income and expenditure is difference, I am still left with roughly the same to pay towards my IVA.

I am still waiting to hear back from Creditfix. I know they are sometimes slow to reply, but I have also included my new tenancy agreement for proof of a change of address. Basically it worked out that my income went up by £150 but so did my rent / bill etc from moving. So I hope they see this in my review. This is why I am concerned as the slow replies and lack of communication worries me that something has gone wrong, but I have not yet been contacted! I know thats probably not the case.
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