IVA approved but can't afford the payment

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Post by chris221 » Thu Aug 08, 2019 8:44 pm
I gave my Iva broker all my expenditures and he then amended these as said I would be below the 10p threshold ? However said when vanguard called me to say yes to everything even if it was wrong to ensure it’s approved. I have had the Iva approved but I can’t afford the payment when I factor in fuel etc and other essentials where can I go from here to try and reduce the payment and extend the Iva ? I feel it was totally missold?


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Post by kallis3 » Thu Aug 08, 2019 9:05 pm

All of your expenditure should have been included. Did this not happen?
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Post by SteveUK » Fri Aug 09, 2019 6:29 am
If you truly can't afford a high enough payment to get an IVA passed then an IVA is obviously not right for your circumstances. An IVA company that tells you to lie is not a company you should be doing business with either. Speak to another company, there are a few company reps who post on the forum and see if they can help.


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Post by Foggy » Fri Aug 09, 2019 7:18 am
There isn't a 10p threshold as such -- more a threshold on making the payments viable, which is usually around £80 per month, otherwise it is all eaten up in fees. I have seen a few accepted at around £50 --- but they are like unicorn droppings !

Cutting expenses to such a level is, as you can see, a recipe for disaster! I would have a word with a couple of other firms to see if they agree with the figures or that the IVA was the best solution. You could allow this IVA to fail and hope creditors would accept another from a different provider or ask your IP to put forward a corrected I&E to see if the creditors would accept --- this might, however, also result in the current IVA failing ---- but .... if you cannot make the payments, there is little else to do.

Was a DRO discussed ? What is the total debt ? do you have any assets (house, car, Mona Lisa ) ?
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 Marty171 » Sat Aug 10, 2019 1:42 pm
my IVA is with vanguard and when i took out my IVA the creditors stipulated that I had to reduce a few of my expenditure by £50 for the IVA to be accepted, however they also give me an allowance for stuff like

Healthcare £22
Hairdressing £20
Hobbies £40
Sundries £15
Meals at work £44

which is expenditure I dont have every month so the extra £50 they asked me to pay i could afford as i was kind allowed expenses that i didnt have.

However if you legitimately cant afford the payment i would speak to vanguard and see what options you have.
IVA Started 07/07/2017
F & F Accepted 06/09/2019
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