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  • FIRST POST
    • cheeseoatcake
    • By cheeseoatcake 9th Sep 17, 4:44 PM
    • 21Posts
    • 6Thanks
    cheeseoatcake
    IVA change of circumstances
    • #1
    • 9th Sep 17, 4:44 PM
    IVA change of circumstances 9th Sep 17 at 4:44 PM
    Hi all,

    I am just over 3 years into my iva with grant thornton (now aperture).

    I'm paying £199 a month towards £50k of debts.

    Not much as changed regarding outgoings in the last 3 years but I have gone from self employed to working 20 hours per week.

    My take home salary has dropped from around £20k to £10,600.00

    I look after my father who suffers with dementia and he gifts me about £200 per week to make up my shortfall.

    After the last review I made them aware of this and my IPsaid I could look at a change of circumstance. At the moment we're scraping by but if something happened to my dad we'd be in trouble.

    I'm worried if we change things and cant afford the iva what would happen.

    The IVA is in my name only but we have about £70k equity in the house.


    Any advice would be welcome.
Page 1
    • sourcrates
    • By sourcrates 9th Sep 17, 11:58 PM
    • 12,432 Posts
    • 11,839 Thanks
    sourcrates
    • #2
    • 9th Sep 17, 11:58 PM
    • #2
    • 9th Sep 17, 11:58 PM
    Hi,

    There are two options your IP could look at.

    Option one,

    Your IP has the ability to lower your payments if circumstances change, for up to six months I believe, however, this is only a temporary measure, and any shortfall in payments must be made up at the end of the arrangement.

    Option two,

    If circumstances change permanently your IP can call another creditors meeting, and put the new monthly figure you propose to the vote.
    Usually this would be excepted, but if it wasn't, for any reason, your IVA could fail.

    The trick is to show that what you are proposing offers the creditors the best possible return, if the arrangement fails, they get nothing, so it's in everybody's interests to seek a deal your all happy with.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • cheeseoatcake
    • By cheeseoatcake 10th Sep 17, 4:50 PM
    • 21 Posts
    • 6 Thanks
    cheeseoatcake
    • #3
    • 10th Sep 17, 4:50 PM
    • #3
    • 10th Sep 17, 4:50 PM
    Thanks for your reply,

    If the iva fails what would be the outcome regarding the existing debts?

    Without my dad gifting me each week I couldn't afford my monthly outgoings.

    I've paid in approx. £8000 into the plan plus about another £7000 from PPi.
    There would be another £6,400 to pay assuming the iva runs for the 6th year, if my wife can get a few thousand together could we make an offer to end the iva early or would the creditors look at the equity in our house?
    We still have about £100k mortgage and have a 15 year old daughter..
    • sourcrates
    • By sourcrates 10th Sep 17, 5:00 PM
    • 12,432 Posts
    • 11,839 Thanks
    sourcrates
    • #4
    • 10th Sep 17, 5:00 PM
    • #4
    • 10th Sep 17, 5:00 PM
    That would be the problem you see, creditors are always looking for the best return, so why should they accept peanuts, when you have 100k equity in your house ?

    Having said that, if what you offer is close to the total debt you have, then, maybe, they may just take that for a quick resolution, you will need to discuss this with your IP.

    If the arrangement was to fail, the IP would take his fees first from the pot, whats left would be distributed on a pro-rata basis between the creditors, they could then petition for your Bankruptcy, but more likely, they will just start chasing the debts again, and you will be back to square one.

    You can always apply to lower your payments due to your circumstances.
    Last edited by sourcrates; 10-09-2017 at 5:03 PM.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
  • National Debtline
    • #5
    • 11th Sep 17, 12:42 PM
    • #5
    • 11th Sep 17, 12:42 PM
    Hi cheeseoatcake


    If the IVA were to fail, Aperture themselves could potentially apply to make you bankrupt. They could then apply act as the trustee in your bankruptcy and therefore earn further fees from selling your home and any other assets you own, so it is very important to focus on somehow maintaining the current arrangement or agreeing a settlement that is acceptable to all parties involved.


    As useful as this forum is, I'd strongly recommend that also you contact one of the free advice agencies for a more in-depth look at your finances and your options.


    Dennis
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • cheeseoatcake
    • By cheeseoatcake 11th Sep 17, 10:10 PM
    • 21 Posts
    • 6 Thanks
    cheeseoatcake
    • #6
    • 11th Sep 17, 10:10 PM
    • #6
    • 11th Sep 17, 10:10 PM
    Thanks for the advice Dennis and soucrates its much appreciated.
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