IVA Help!!!!

loula81

Hi,

Hope someone can help me...
I'm nearly one year into my IVA... I am struggling to make the payments but coping at the moment (I'm currently living at home with parents).
The problem is I can't stay at my mums forever (I ended up in the IVA after I split with my ex partner and my house was in negative equity... I was in alot of debt and this seemed like the best way to sort it). My parents have been very accomodating but there isnt very much room in the house and without telling me to move, they have been hinting at it...
I will need to move out and rent (with my new partner) in the next 6-9 months, but when I've spoken to Debt Free Direct about it they say they will not reduce my payments as it will mean im paying less than so much per pound back to the creditors....
Noone told me this when i first was sold the IVA.. I thought it was meant so that you can only pay back what you can afford!!
Once I move out I will obviously need to pay bills and will need more money for food etc... so I'm not going to be able to afford the £302 per month im paying at the moment.
I'm just wondering if its worth trying to convince DFD that I will only be able to afford to pay less, should I just move out when I have to then contact them to try to decrease the payments.... will they listen and try to help as I want to pay as much of my debt back as possible...
Or will it come to bankcruptcy as I will not be able to afford the payments anymore.... in this case will the bankcruptcy people still want payments afterwards, will i be able to rent privately or will my landlord find out... and will i be able to get any kind of bank account to put my wages into?? (im hoping its not going to affect my job).
Hope someone can help, I know theres alot of info here.
Thanks!

Charco_2

No need to start running away with yourself just yet.

First of all you will need to sit down and try to work out some kind of a budget for what you are trying to achieve. Realistically what will it cost you to do all of the above? Was there any allowance in your original IVA for money being paid to your parents for rent? How much more than this is it going to cost you to move out with your partner? What you are really looking for is some kind of a realistic figure that you could still offer towards your proposal.

It's not up to DFD whether you can reduce your payments, it's not like they are being mean or anything. The original proposal you put forward promised a dividend of a certain amount to your creditors and that is what they agreed. To get your completion certificate in four years time (and be debt free) that's what you'll need to achieve. If your payments decrease, what can you offer instead that may be an incentive to your creditors because if your circumstances change you can try to renegotiate or have a variation done (but obviously this may affect the fees too). Things you could offer would be like an extention to your IVA (pay an extra six months or a year to make up the difference), or if a family relative was willing to help ou buy out of your IVA early (a full and final settlement.

A sensible starting point as i said though would be to work out what your new budget is going to be! Does your new partner know your situation? Is she willing to accept that this could be part of your household budget each month?
(When speaking to your IVA provider though, I would also make it sound that moving out is a less than voluntary situation, rather than moving in with your new partner. )

thecableguy12

they may be able to reduce the payments by 15% all this and the rules will be mentioned in the proposal you signed and the modifications you also signed