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Posted by catherine anne : February 4th, 2008

IVA problems

Hi I started my IVA in June 2007 and pay £190 monthly. I recently took on a change of role in work and now receive a small petrol allowance which was picked up by my IP when I provided my wage slips. I received a letter from my IP requesting a payment of £500 which I cannot afford to pay in one lump sum so I asked if it would be possible to pay the money in some installments or to be added on to the IVA, they did not outwardly say no but have sent me income and outgoings forms and stated that I cannot now meet the IVA payments and wish to know what my intentions are. The reason I am struggling is because my mortgage payments have risen from £420 to £640 per month as it is now out of its interest only phase. Due to my Fathers illness I have for some time been considering selling my property to move closer to him my previous IP (who was very approachable) had no objection to me doing this and gave me advice on what this would mean for the remainder of the IVA. I could either (providing I made a profit) pay off the full amount or pay back what I would have to raise in the fourth year of the IVA by remortgaging and continue with the monthly installments as agreed. This new IP does not seem so understanding and has not answered clearly whether they will still honor what my last IP advised. I am really woried that I will be pushed down the bankruptcy route, I thought that when the IVA was agreed life would have got less stressful but the opposite is the case and now I dont see any way out of this nightmare. I know this is a bit of a tale and there are plenty out there like or in worse situations than me but any advice would be really welcome thanks
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Hello Catherine

It is difficult to give you advice as some companies will work different from others also as the IVA ties you into a legal contract with that company I cant go into to much detail. The fact that you are considering selling the property may be an answer the best thing to do is to get back in touch with your IP and advise them of this. If this doesn't work you could speak to either a financial advisor or get some legal advice about the contract you have entered.
Posted by: Debt Advice Tru...

iva

me and my partner are currently in an iva and are struggling every month i only earn 8 hundred a month and partner 1,700 a month we have two children and have been in this iva for a year but still struggling to get one or two things paid each month we dont have a social life because we cant afford it our morgage is around 550 a month and the iva 580 the rest goes on council tax ,water,electric,gas,phone,tv, licence, petrol. food.and were finding it very hard to make ends meet still .i dont now wat to do for the best carry on or go bankrupt.the only thing there is my partner who seems to think struggling is the better opption as we would lose the house which he says is our pension i want to be able to do things with the kids and buy them things when they need it not be filled with dreed wen they need new shoes or clothes ect can you give any advice.
Posted by: sue

Hello Sue

I understand your concerns but I would agree with your partner’s beliefs. Although for the time being you are living on a tight budget it is only temporary. Once the IVA is complete you have no more money worries. Even in bankruptcy you may still end up paying back a similar amount if the OR believes you have this available, which could in turn mean that you are still in a similar situation.
Unfortunately the only things that count in your expenditure are realistic living expenses and money for a social life isn't classed as a necessity although there should be a reasonable amount for clothing in your budgets.
Have you tried talking to you IP about the situation? If you explain your concerns they may be able to look into the matter for you.
Hope this helps
Posted by: Debt Advice Tru...