IVA 12 months, now circumstances have changed

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Post by alxh » Sat Sep 11, 2010 6:04 pm
My husband and i entered a joint IVA 12 months ago through Andy Davie (very helpful.We have just had the documents to sign for our 1 year review. However our circumstances have changed.
After we started paying we soon realised that if things carried on the way they were we were not going to be able to carry on as I was trying to feed a family of 4 and a dog for about £25 per week and with the best will in the world it couldn't be done, we were living on beans on toast and the children had to give up any extra curricular activities. Christmas didn't exist and the children virtually had nothing, we had no quality of life. I think we had just been unrealistic with the amount of money we were going to be able to live on and bankruptcy looked like it was the only option.
Then, what felt like a lifeline being handed to us our mortgage rate dropped and the repayment was nearly £500 less per month. This would mean that we could now actually eat properly and the children could carry on with their extra curricular activities. My parents on in their 70's and my mother has had to have a number of operations in the last 12 months so our petrol bill increased alot in me having to make a 90 mile round trip at last once a week to visit which is unlikely to change so we have been in a position where we just feel that we are able to make ends meet now. I have listed all our outgoings and incomings and sent 12 months of wage slips off but what I am worried about is I have been advised by another debt management company that the IP will want all the extra money that we saved from our mortgage dropping and will probably put pressure on us each year for more money anyhow and that it would be in our best interests to go bankrupt or basiclly have no quality of life. As someone who has been through an IVA Andy and out the other side I wonder whether you could let me have your opinion on this. Thank you


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Post by kallis3 » Sat Sep 11, 2010 6:15 pm

Which company did Andy put you in touch with? You need to speak to your IP and explain about the change in circumstances.

I don't think they will take all of the extra from you - you do need to be able to live without struggling.

As to this other company, they should not be cold calling you and I suspect that they are merely a bankruptcy assist firm and they are just out to make money from you. Which company is it as a matter of interest?

As regards bankruptcy, you can do it yourself if you need to. Do you have any equity in your house? If so you could lose it if you go BR.

Please speak to your IP initially and talk things through with them.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.


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Post by MelanieGiles » Sun Sep 12, 2010 9:56 pm
It would be better if you spoke to your IP, who knows your case, rather than a DMP firm who probably do not. If your IVA was proposed under the terms of the IVA Protocol, then your payments should only have to increase by 50% of any increased disposable income - after household costs have been increased in line with your reasonable expenditure.
Regards, Melanie Giles, Insolvency Practitioner
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