Income gone down

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dan385
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by dan385 » Sun Aug 12, 2018 9:02 am
Hi all,

I get paid weekly and my income is very irregular. I'm currently earning £60 less a week than what my i&e was worked out on. My payment is £90 a month because I also have a car payment of £153. I had a e-mail from creditfix stating my payments will be staying the same after my 1st year review!

I stated that my council tax, petrol and electricity prices have gone up approximately by £7 a month combined and my weekly wages are on average down by £20. All paper work was sent as proof . How come they didn't fail it or offer at least a small monthly reduction?

The only way I've managed so far is some small help from family for food and a tenner here and there. Also some obviously spending less than the agreed amount on food.

I'm confused:(
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Foggy
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by Foggy » Sun Aug 12, 2018 9:10 am
You should challenge them, but, I would imagine that the result would be to fail the IVA as no longer sustainable as £90 per month is right at the bottom of the scale where the IVA just covers it's costs and the creditors get very little back.
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dan385
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by dan385 » Sun Aug 12, 2018 9:16 am
Thanks foggy. That's why I didn't want to ask them, in case they failed the agreement. It's been a bad 12 months at work due to the business being sold. Hopefully the new owners can turn things around.

If however my situation doesn't improve, I would have to stop the car payments and VIA payments. The car would get repossessed and bankruptcy would loom.
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Foggy
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by Foggy » Sun Aug 12, 2018 9:26 am
dan385 wrote:
Thanks foggy. That's why I didn't want to ask them, in case they failed the agreement. It's been a bad 12 months at work due to the business being sold. Hopefully the new owners can turn things around.

If however my situation doesn't improve, I would have to stop the car payments and VIA payments. The car would get repossessed and bankruptcy would loom.



Bankruptcy isn't always the outcome (depending on your assets). If the worse came to it, yes, the car would probably be a goner, but you might be able to look into a DMP with one of the "charitable" firms that don't charge fees for DMPs. Or ... you might qualify for a DRO if you meet those criteria: https://www.stepchange.org/debt-info/wh ... order.aspx
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kallis3
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by kallis3 » Sun Aug 12, 2018 11:12 am
Depends on how much the car is worth for a DRO. Do you own your own home?
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dan385
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by dan385 » Sun Aug 12, 2018 12:32 pm
I would imagine the car isn't worth anymore than £3500, but I have £4800 owed on it. I have no assets and I rent. I have no intention on failing the agreement but if my income doesn't increase soon it will have to be done. I guess stopping car payments would make my via fail!
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kallis3
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by kallis3 » Sun Aug 12, 2018 2:54 pm
Your car is worth too much for a DRO.
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Foggy
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by Foggy » Sun Aug 12, 2018 4:02 pm
kallis3 wrote:
Your car is worth too much for a DRO.


Not if it is repo'd before the DRO is applied for. But this would be a matter for a DRO intermediary to consider.
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kallis3
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by kallis3 » Sun Aug 12, 2018 4:37 pm
It also depends on total amount of debt and if he owns his own home.
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Foggy
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by Foggy » Sun Aug 12, 2018 5:17 pm
Exactly -- as I said in my post above: "If you meet the criteria"
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kallis3
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by kallis3 » Sun Aug 12, 2018 9:18 pm
Sorry Foggy!
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Foggy
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by Foggy » Sun Aug 12, 2018 9:20 pm
kallis3 wrote:
Sorry Foggy!


No worries :-)
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Lisa Thomas
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by Lisa Thomas » Mon Aug 13, 2018 8:51 am
Based on your posts I do wonder why an IVA was found to be appropriate in the first place...
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dan385
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by dan385 » Sat Aug 18, 2018 6:20 am
Hi Lisa

When I first applied, I wasn't well informed on the different procedures available. I was just relieved to get lower debt payments. Also the bankruptcy fees were impossible to find. In hindsight I should have opted for bankruptcy. The initial relief of lower debt payments has now been replaced with more stress and worry. To be fair this is due to lower wages.

People really need to consider the income and expenditure amounts very carefully when applying, especially if your on a zero hour contract.

Please don't rush into anything, 5/6 years is along time
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Foggy
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by Foggy » Sat Aug 18, 2018 7:59 am
dan385 wrote:
Hi Lisa

When I first applied, I wasn't well informed on the different procedures available. I was just relieved to get lower debt payments. Also the bankruptcy fees were impossible to find. In hindsight I should have opted for bankruptcy. The initial relief of lower debt payments has now been replaced with more stress and worry. To be fair this is due to lower wages.

People really need to consider the income and expenditure amounts very carefully when applying, especially if your on a zero hour contract.

Please don't rush into anything, 5/6 years is along time



Very good advice, Dan. This is why those firms that cut agreed allowances to the bone should be looked at very carefully.
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