Hi, I am almost 3 years into my Iva and have been managing as a single parent of two children. I’m a full time student in receipt of an bursary and tax credits etc so things are tight but I’ve been managing. However, I am now in a relationship and my partner and I are discussing him moving in after Christmas. He works full time (self employed) and has no children. I currently rent my home. I just wondered how best to make this work for us with my Iva. If he moves in, I’ll continue to get my bursary but am expecting to lose my tax credits, and therefore my income wouldn’t cover all of my bills. We’ve discussed him taking over the household bills such as rent, council tax, energy etc and me paying for my own personal items such as my Iva, car,phone, childcare and food out of the small amount I’ll receive rather than pooling our finances. However I just wondered how that would work with my Iva; I currently only pay £84 a month, but wondered if the above method would make my payment shoot up to something unaffordable? Things are going to be very tight until I qualify and get a job which isn’t going to be until around this time next year, so keeping our costs low is important.
I just wondered if anyone had any advice?
Thanks in advance
The assumption will be that he will take over at least half of the household expenses, which, in theory, would free that amount up for your IVA payment. The loss, however, of your benefits could make the IVA unsustainable and you are already on or about the minimum payment to make an arrangement viable, so have little or no wiggle room.
Personally, I would say not to rock this particular boat until the IVA has been done and dusted as it is on a pretty fragile footing anyway.
You have around two years left ( assuming a 5 year agreement ), so about £2k left to pay --- is there any way that your partner ( or friends and family) could help you to make a full and final offer of around this amount to end the IVA early and get it out of the way?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Hi foggy, thanks for this. We have worked out that I will still be able to pay what I currently do, even with a sight increase we’d manage although things as I say would be tight. It’s a bit of a grey area because until we go ahead, I don’t know what the situation with my benefits is, ie whether I’ll still be entitled to some because universal credit, when contacted were totally unhelpful at trying to help us work out figures. We think that because of my only income being bursary for the next 9-12 months and having children we might still get a small amount.
We don’t really want to wait another 3 years (my Iva is over 6 years) to move in together and no, unfortunately I’m not in any position to offer a full and final payment at this point.
I’m grateful for your advice.
Edit - just spoken to my partner about this and he said he may be able to get the 2k together to offer F&F, however, with my Iva being 6 years are they likely to accept this? The reason it’s 6 years is because my name is still on a mortgage with my ex partner, that I’ve had nothing to do with for 6 years and he continues to be unable to remove my name from it because he can’t remortgage on his own. It’s only worth about 70k and has very little equity in it.
Yes, that 6th year does make a difference to the amount needed for a F&F offer, however, it could still be worth mentioning to CF as creditors are getting very little from a payment of around £80 a month and could well be as glad to get it wound up as you would be.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
It doesn't cost anything to try and as Foggy points out, the creditor might appreciate the saving on Administration costs.
Bear in mind your IP might charge a variation fee of c£500 which could affect the outcome and decision but suspect creditors will just want to close the case and move on..
Thank you very much for your advice. Nothing is set in stone yet, it’s all just pie in the sky at present but you’ve certainly given me food for thought. Many thanks
