IVA gettin hard...

Jam_Buttie

I entered into an IVA in March 2007 owing just uner £30,000. I was paying back £302 per month which was fine, but over the last 18 months my payments have gone up to £329 per month due to bonuses etc as I have to declare 50% of it.

Anyway, before Crimbo I moved in with my OH and let my IVA IP know and gave them an updated I&E form. This left me with about £57 per month surplus income, which the IP said isn't enough and said that I need to start to think about what I want to do.

If all my debts are sent back to me then the first thing i'll do is to go to the CAB and do a payment plan (Which is what I should have done in the 1st place)

Any ideas...?!

Jam_Buttie

Bumpness...

james32_uk

So to clarify youve moved in with your OH and now your expenses have gone up? That is unusual as I assume youre now sharing bills etc.

Jam_Buttie

OH was getting full HB and full CTB before I moved in, so now we have to pay full rent and full council tax. Also with two of us there were using a bit more gas and leccy etc...

50broke

hi how can you move from iva to dmp? just wondering as family member is struggling with hers.....thanks

Jam_Buttie

It was suggested to me by my IVA IP. So I questioned !!!!!! they didnt offer it me in the first bleedin place...

fin1980

If youre asking !!!!!! he didnt suggest a DMP in the first place? The answer is you were probably attracted to the 'be debt free in 5 year adverts' that companies attract people with.

Jam_Buttie

I've paid in quite a chunk. i'm trying to weigh up all the different options I have...

Offer the IVA £150 which would be TOTALLY pushing me, but in the long run I'd get a completion cert in 3 years and life will be better.

Pay £100 a month for the next 28 years via a payment plan.

Bankruptcy... Which i'm trying to avoid...

MIVAA

Hi Jam Buttie,

Your options are the same now as they were when you entered your IVA in 2007, namely...

a ) A DMP, which is an informal debt solution, which allows you to repay what you can afford over no fixed term, until the full debt is repaid. No guarantee of frozen interest. No guarantee of legal action no been taken against you.

If you want to move to a DMP from an IVA you should discuss this with your IP. They will explain the procedure to you.

Be aware though, most of your IVA payments will be used to settle the IP's costs, and therefore will not get deducted from your total outstanding debts. This may mean that even though you have contributed in the region of £7,000, you may only see a small reduction of £2,0000 or so to your debt level.

b) Bankruptcy, which is a formal debt solution that lasts in most cases for up to 12 months. You will be expected to repay to your creditors what you are deemed to be able to afford by the Official Receiver, where any repayments last for 3 years. This is called an Income Payment Arrangement. IPA's are applied when the debtor has a disposable income of more than £100, and therefore Jam Buttie you could expect to have an IPA, based on your assessment of being able to afford £150.

c) Continuation of your IVA. If your ability to afford your IVA payments has fallen to £150 then I would imagine this too would be insufficient to continue with your IVA and likelihood is it will fail.

At that point you will need to condsider which option is best a) or b) as c) will have been removed.

MIVAA

Jam_Buttie

I'm hoping that over the next few months I can slowly get back to where I was with the IVA...