IVA - Living with parents

Stipend

I have a total of £16,600 in debt to about 6 different creditors. This is not including my Student Loan which I am not including because

a) I have been informed that they have a general bar when it comes to accepting IVA proposals, unless they are getting at least something like 70p in the £ back

b) The Student Loan is not causing me sleepless nights and, at present, isn't even going up, as the interest is tied to the rate of inflation.


I have done the maths, worked out a budget and am confident I have a good proposal, but there is one major sticking point and I have read lots of different and contradictory information on this: I still live with my parents which means that, although I do pay rent (and a good rate of rent too), it is an "informal" arrangement and I would find it very hard to prove this to anyone.

I know that some people feel awkward or reluctant to tell their family about their difficulties due to the shame and the guilt involved and I would be a liar if I said that was not a part of it; however, that is not the full story. In my case, I really am in a situation where I can not do so. My father has recently been made redundant and suffers from depression. There is no realistic way that I could drop this bombshell on him; it would cause definite rifts in the family and, to be blunt, I would rather carry on paying the debt and not have a single penny in disposable income than put them through that.

Does anybody have any experience in the issue of setting up an IVA and preserving your confidentiality? Not having creditors banging on the door and tying up the phone is one definite plus of going into an IVA. My rent is currently £350. I am guessing I would be asked to prove I pay this, which would definitely involve the help and input of my parents I can imagine.

Please feel free to PM me and I do kind of feel in a bit of a hole here

thanks

M

danielanthony

When I started my IVA I lived with my parents. I typed up a letter saying that I paid them board and lodgings at £x per month, they then signed this. This was good enough to be included in my official statement of income/expenditure.

smartiedriver_2

Hi,

I was in the same situation and I simply typed a letter "to whom it may concern" and in fact, I signed it myself pp my parents.... this was accepted just fine.

I also now pay my Mum by standing order so that upon annual review, they can see it going out of my (basic) bank a/c, rather than having to do a new letter when my housekeeping increases every year.

Good luck with your IVA.