Hi. I am 3 months into my IVA and struggling to live with the payments they want from me. The original figure would have been much easier however at the chairmans meeting 1 of the creditors asked for more money from me. Due to the stress of it all I agreed just to get the iva in place.. is there anything that can be done before the yearly review to make my payments more affordable. My debt was 58000 and I'm paying 934 back per month.
You need to speak to your IP asap and ask to do a new I&E. Something seems to be wrong here.
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. http://kallis3.blogs.iva.co.uk
Either the I&E is adrift or your budgetting expectations are unrealistic and it will need to be explored.
Most arrangements do allow for the IP to reduce payments by up to 15% without recourse to the creditors -- however, some have added restrictions on this, like no variations within the first year, etc.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I have spoken to Payplan today and they have sent me a copy of our original figures which I gave to them whilst under a huge amount of stress brought on by my debt... The original figures were great and allowed for a meal out once a month etc, however the creditor asked for a further £250 per month which was our contingency money as well as home, car insurance etc... Payplan were not too helpful today and made me feel very stressed after the call. This must be a fairly common issue that arises in the first few months of an IVA ??.
I think an allowance for a meal out is on the generous side --- we had an interlocking pair of IVAs, albeit 9 years ago now, and were 'granted' the princely sum of £10 per month, between us, for 'entertainment',and £15 a month for contingencies of all sorts.
Car insurance is usually accepted at whatever level it is, being beyond your control and a legal requirement if you drive. I have heard before of house and life insurances being cancelled or funded from other allowances.
I feel that a "tweak" of that magnitude is unreasonable ! Unfortunately they have you over a barrel!
Hopefully you have the relevant clauses and Payplan has the will (though I wouldn't put money on it) to reduce the payment at least a little. But, yes, as you surmise, the beginning of most IVAs is a sharp and severe belt tightening exercise.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Wed Sep 25, 2019 6:48 pmBigtone1204 wrote:
I have spoken to Payplan today and they have sent me a copy of our original figures which I gave to them whilst under a huge amount of stress brought on by my debt... The original figures were great and allowed for a meal out once a month etc, however the creditor asked for a further £250 per month which was our contingency money as well as home, car insurance etc... Payplan were not too helpful today and made me feel very stressed after the call. This must be a fairly common issue that arises in the first few months of an IVA ??.
Unfortunately the issue seems to stem from you accepting the modification, which sounds as if it was unrealistic.
The problem is if you are unable to stick to the terms of the IVA AND if creditors don't accept a variation then you are at risk of the IVA failing.
Your IP should have explained this to you when the modification was proposed.
