Our IVA is not going well

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Pauld5313
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by Pauld5313 » Fri Feb 23, 2018 4:00 am
Our IVA is not going well and our IP is concerned for us that it is not affordable and she wishes to meet with my wife and I to discuss other options but doesn't want to fail the IVA as we have 2.5 years to go. We do have disposable income but not much and we have already used our payment breaks and had our payment reduced by 15%. Do you therefore know what other proposals she could put to us as she told me today that she wants to help us but doesn't feel that going back to the creditors is helpful for anybody. We are currently £800 in arrears.
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luluj
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by luluj » Fri Feb 23, 2018 6:58 am
They may look to extend it by a year to help the situation - great that IP is intetested and being proactive in offering help
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Foggy
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by Foggy » Fri Feb 23, 2018 7:52 am
Good to hear of an IP willing to help as much as they are able. As Luluj says, maybe an extension to the term. Examine the possibilities of getting a third party to help you out with a F&F, or even payments made to date as a F&F. Good luck.
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MerlinL14
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by MerlinL14 » Fri Feb 23, 2018 8:22 am
This must be pretty stressful, but as has been said, your IP is open to talking with you to resolve the matter and find a way forward without failure of the IVA, that is a huge plus point. There are options that can be addressed and your IP will have a summery plan otherwise the meeting will not be constructive and would not have been proposed by them. I am sure that there is a way forward and it will not be bad news or detrimental. Good luck with your meeting and use the forum to offload any frustrations, you are not alone.
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Lisa Thomas
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by Lisa Thomas » Fri Feb 23, 2018 9:19 am
I presume something has happened to your Income & Expenditure since you started reducing your surplus income?

Do you own any property/assets?

Perhaps the IP can call a variation meeting proposing to either reduce your payments to an affordable level or asking creditors to accept payments to date in final and final settlement, but it will depend on what the comparison looks like with Bankruptcy as to whether it will be attractive for creditors to accept.
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kallis3
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by kallis3 » Fri Feb 23, 2018 9:30 am
What a very helpful IP - I hope you can get something sorted.
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Pauld5313
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by Pauld5313 » Fri Feb 23, 2018 3:07 pm
Thank you all for your comments. My wife and I are very grateful and yes we do have a marvellous IP . She has been supportive throughout this process and has tried her best to keep the plan on track. I am not an easy customer due to my condition.
I have a long term mental health condition which hasn't help my wife and I keep control of the VA. I have missed payments because of other family commitments. In hindsight that has been an error on my behalf. Also due to my condition I have been unable to work for at least 8 months of the plan and went down to half pay for 3 months. That's when we asked for a payment break. Our last child is leaving home on 12/04 and it will leave myself ,my wife (interlocking IVA) and my 38 year old stepson. We rent our property on a long term let and we have asked our landlord if we can downsize . That will drastically reduce our outgoings and my step son will leave also . This will reduce the stress on both of us as I manage the money each day really and its very difficult to control other peoples use of appliances etc. Due to my anxiety condition I am very passive and will always avoid confrontation . That has not helped make our VA successful.
We did have our third variation meeting and an amount of £2250 (arrears) was added to the end of the VA and it was agreed we could pay that amount over another 12 months. In theory the VA has been extended. We are in a corner . Our income has reduced but our expenditure has increased and because I have missed payments our utilities have also increased more as I try to catch up. We do have disposable income of £179 but its a lot lower that the £297 we are expected to pay.
I said to my IP that I was willing to go BR and let my wife continue with a single IVA but she said that because we only have 2.5 years left it would not make any difference to the creditors .In fact she said that they would not get a return from the BR..
My wife and I discussed our forthcoming meeting with our IP and I have taken notes from the forum and we have decided to transfer our expenditure into another account so that we stay in budget. This is something I haven't done previously and it has of course caused many problems to me.
We have paid only £4000 into our plan to date. There is no option for me to obtain a F&F but I was going to suggest that when I retire in 4 years time the creditors could have an amount from my pension lump sum to clear the arrears. Thank you as always Paul & Melanie
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Lisa Thomas
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by Lisa Thomas » Fri Feb 23, 2018 3:54 pm
Is your stepson paying rent/contributions and are they for reasonable sums or can they be increased.

I meant creditors could consider accepting the payments you have made to date in full and final settlement...i.e your IVA would finish early and you would not have to make any further payment or terminate the IVA.
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Foggy
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by Foggy » Fri Feb 23, 2018 3:56 pm
In the circumstances I would think it worth at least discussing a "Full & Final offer based on payments to date". As your IP has pointed out, your creditors would not get anything much in the way of bankruptcy, so would probably not push for it --- this, of course, wouldn't stop you declaring BR yourself.
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