implications of ending iva

jemma1981_2

I am considering ending my iva as i cannot afford to pay it. I was wrongly advised to begin with and should never have taken it out as i have no assets to protect.
I was wondering what the implication will be? Since taking out my iva I have now moved out of my parents house and in with my partner. Will their earnings/assets be taking into account?

Jam_Buttie

give your IP an updated I&E sheet with partners income, out goings etc. This is what I had to do and got my payments down from 340 a month to 200

timberflake

Jam_Buttie wrote: »

give your IP an updated I&E sheet with partners income, out goings etc. This is what I had to do and got my payments down from 340 a month to 200

You don't have to give any details about your partners income or fincancial status in general for that matter, hence why they're called INDIVIDUAL Voluntary Arrangements.

Contact your IP and tell them that your situation has now changed and you are paying out more. They will send you an income & expenditure sheet, and will then call a creditors metting to see about having your monthly contributions reduced.

THIS IS IMPORTANT! Make sure you keep you and your partners finances completely separate, no joint accounts and certainly don't send any of their financial details to your IP!

Charco_2

That's not actually how it works Timberflake!

The partner's income is important as a contribution to the household expenses.

Your partner will not be expected to contribute to your IVA but for the purposes of drawing up a new I&E they will need to know what the income of the entire household is and the expenses of the entire household. Then all your IP will be interested in is YOUR share of the surplus as a percentage of the household income.

As for the main question, the implications of ending your IVA would be that you would be left to fend for yourself as regards your debts again, the phonecalls letter and threats will start up again. Obviously if you feel that brankruptcy is an option available to you then that will deal with your debts but it's not something i would rush into.

Have you thought about offering a full and final settlement instead? Even if you have very little to offer, this is something that may be considered by your creditors and would save you wasting your efforts so far... really depends on the situation though - could you post more information and let others offer further help (not looking for your name and address haha)

timberflake

Charco wrote: »

That's not actually how it works Timberflake!

The partner's income is important as a contribution to the household expenses.

Your partner will not be expected to contribute to your IVA but for the purposes of drawing up a new I&E they will need to know what the income of the entire household is and the expenses of the entire household. Then all your IP will be interested in is YOUR share of the surplus as a percentage of the household income.

I moved from my parents house to move in with my partner in 2006. I advised the IP that my situation had changed and they sent me out and I&E form simply asking what I was contributing towards the household. They weren't interested in what my partner was earning/contributing as the agreement had nothing to do with her.

This is my experience of being in an IVA so IMHO it's pretty reliable information/

Charco_2

The agreement still has nothing to do with the partner, nor will they be asked to contribute to an IVA but your IP has a duty to check and verify the Income and Expenditure to make sure the person in the IVA is contributing all they should. You're basically proposing a variation and looking for the agreement of the creditors - just like at the start of the IVA when you had a creditors meeting!

timberflake

Charco wrote: »

The agreement still has nothing to do with the partner, nor will they be asked to contribute to an IVA but your IP has a duty to check and verify the Income and Expenditure to make sure the person in the IVA is contributing all they should. You're basically proposing a variation and looking for the agreement of the creditors - just like at the start of the IVA when you had a creditors meeting!

Exactely! When I first went into my IVA and was living at home, the IP didnt ask for details of my mum's income and expenditure.

Are you somehow telling me that I'm wrong even though this is something that I have personally done!? You're either implying that or conceding that not ALL IP's will require this as per my experience.

Charco_2

Exactely! When I first went into my IVA and was living at home, the IP didnt ask for details of my mum's income and expenditure. But if you stated on your Income and Expenditure that you paid some sort of living allowance to your parents (for rent or meals) surely he asked for some sort of proof that you were actually giving your mum £200 a month or whatever!? A letter from your parents or a bank statement showing £200 being taken out regular as clockwork... that type of thing!

Are you somehow telling me that I'm wrong even though this is something that I have personally done!? You're either implying that or conceding that not ALL IP's will require this as per my experience. Neither, I am shocked that an IP would be so flippant with their duties! Everything must be verified and checked! I'll hazard a guess you've been to a dentist at some time in your life... do you pull teeth or give fillings in your spare time? Have you had your appendix out? Are you now qualified to remove other people's appendixes?

Jemma, if your IP asks for proof of your renewed I&E give it to him, dont say "some guy on a forum said i dont have to!"

timberflake

Charco wrote: »

Exactely! When I first went into my IVA and was living at home, the IP didnt ask for details of my mum's income and expenditure. But if you stated on your Income and Expenditure that you paid some sort of living allowance to your parents (for rent or meals) surely he asked for some sort of proof that you were actually giving your mum £200 a month or whatever!? A letter from your parents or a bank statement showing £200 being taken out regular as clockwork... that type of thing!

Are you somehow telling me that I'm wrong even though this is something that I have personally done!? You're either implying that or conceding that not ALL IP's will require this as per my experience. Neither, I am shocked that an IP would be so flippant with their duties! Everything must be verified and checked! I'll hazard a guess you've been to a dentist at some time in your life... do you pull teeth or give fillings in your spare time? Have you had your appendix out? Are you now qualified to remove other people's appendixes?

Jemma, if your IP asks for proof of your renewed I&E give it to him, dont say "some guy on a forum said i dont have to!"

I'll admit, my mother had to provide written confirmation of what I was paying each month, however, this is totally different to providing the IP with details of HER I&E!

Would you mind pointing out where I've told the OP not to provide details of their renewed I&E? I can't seem to find it..............Why does the OP have to give details of their partners I&E? Surly a copy of their mortgage/letting agreement + copies of bills would be sufficient proof of the household outgoings? That together with their personal I&E would be more than enough, there is absolutely no reason for the OP's partner to have to declare their I&E as they are under no obligation to do so, after all, they are not party to the IVA.

Jemma, provide copies of your mortgage/letting agreement together with utility bills and personal outgoings such as mobiles, gym etc. You do not HAVE to provide details of you partners I&E, you only have to provide evidence of what your outgoings are and that you are not paying too much towards them i.e. 80% of the total household outgoings, for example.

Charco_2

timberflake wrote: »

I'll admit, my mother had to provide written confirmation of what I was paying each month, however, this is totally different to providing the IP with details of HER I&E! That's because your mother's I&E is entirely different from yours, it wasn't your household! Your mother gave proof towards YOUR I&E. The rest of your bills (like for your car HP, mobile phone, clothes) were your own and would have required your own proof then.

Would you mind pointing out where I've told the OP not to provide details of their renewed I&E? I can't seem to find it...... (Taken from post 3 on this thread - by Timberflake!)
***"You don't have to give any details about your partners income or fincancial status in general for that matter, hence why they're called INDIVIDUAL Voluntary Arrangements...

THIS IS IMPORTANT! Make sure you keep you and your partners finances completely separate, no joint accounts and certainly don't send any of their financial details to your IP!"***

Why does the OP have to give details of their partners I&E? They dont! The OP now has to give new details of her own I&E - which inextricably includes her partner! It's only one I&E which covers them both!

Surly a copy of their mortgage/letting agreement + copies of bills would be sufficient proof of the household outgoings? This is only half the story! The "E" part of I&E. The IP needs to know the full household income to be able to apportion what percentage of the income belongs to the OP and therefore what percentage of the joint household expenditure they are paying too!

That together with their personal I&E would be more than enough, there is absolutely no reason for the OP's partner to have to declare their I&E as they are under no obligation to do so, after all, they are not party to the IVA. They are not party to the IVA true. But it is ONE I&E for the household, not two. One mortgage/rent. One council tax/rates bill. One electricity bill. One gas bill. These are not necessarily split 50/50. What if OP was moving in with her partner and his three kids, he earns £5k per month she earns £1k, but you just split the bills 50/50... dont think so! Everything must be verified!

timberflake

Charco wrote: »

timberflake wrote: »

I'll admit, my mother had to provide written confirmation of what I was paying each month, however, this is totally different to providing the IP with details of HER I&E! That's because your mother's I&E is entirely different from yours, it wasn't your household! Your mother gave proof towards YOUR I&E. The rest of your bills (like for your car HP, mobile phone, clothes) were your own and would have required your own proof then.

Would you mind pointing out where I've told the OP not to provide details of their renewed I&E? I can't seem to find it...... (Taken from post 3 on this thread - by Timberflake!)
***"You don't have to give any details about your partners income or fincancial status in general for that matter, hence why they're called INDIVIDUAL Voluntary Arrangements...

THIS IS IMPORTANT! Make sure you keep you and your partners finances completely separate, no joint accounts and certainly don't send any of their financial details to your IP!"***

Why does the OP have to give details of their partners I&E? They dont! The OP now has to give new details of her own I&E - which inextricably includes her partner! It's only one I&E which covers them both!

Surly a copy of their mortgage/letting agreement + copies of bills would be sufficient proof of the household outgoings? This is only half the story! The "E" part of I&E. The IP needs to know the full household income to be able to apportion what percentage of the income belongs to the OP and therefore what percentage of the joint household expenditure they are paying too!

That together with their personal I&E would be more than enough, there is absolutely no reason for the OP's partner to have to declare their I&E as they are under no obligation to do so, after all, they are not party to the IVA. They are not party to the IVA true. But it is ONE I&E for the household, not two. One mortgage/rent. One council tax/rates bill. One electricity bill. One gas bill. These are not necessarily split 50/50. What if OP was moving in with her partner and his three kids, he earns £5k per month she earns £1k, but you just split the bills 50/50... dont think so! Everything must be verified!

So you fully admit that at no point did I tell the OP not to priovide details of THIER I&E!

I'm only going to explain this once more, I HAVE DONE THIS AND EXPERIENCED IT FOR MYSELF! When I moved in with my partner, I was asked to provide details of my new I&E together with proof i.e. letting agreement showing the rent. At no point did they ask for any details of my partners I&E.

So, by your reasoning, if the OP's partner refused to provide details of their I&E (after all, they are not obliged to!), the IVA would be failed due to a breach? I think not.

EDIT: I would certainly welcome the detials of the experiences you've had to back up that what your saying is gospal.

I'm not for a second saying that what I experienced is law and is 100% correct, I'm simply saying that in my experience I have never had to supply such details. My partner and I broke up and I did a house share with a stranger, at which point in my IVA I did a renewed I&E to have my contributions adjusted. Again, my IP simply asked for confirmation of the rent, bills etc together with a completed I&E form, but from what your saying they should have asked for details of what this person's (who I'd never met before I moved in!) I&E was!? What would you do in their position, I know I wouldn't hand that kind of information over!

The point I'm trying to make is that you don't HAVE to provide details of anyone elses I&E, I know because I've done it, twice!