IVA advice needed - 1 Year review coming up

yade

I have been in my IVA for one year now and have a review due very soon. The IVA has not gone as smoothly as I hoped due to niavity on my part.
When I took the IVA out my I&E was one that was being used when I was in a DMP, it was ambitious to say the least because I wanted to show that I was trying to pay back all I could.
On the IVA being accepted it was accepted on the basis that I find cheaper accomodation once my tenancy had expired, basically £200 cheaper than I am paying now and that my IVA payments had to increase by the same amount. I wasn't happy but the horrid man from Payplan who dealt with it was very impolite and direct and basically said that I had no choice but to take it. I was in a desperate situation and agreed to it. It was only after that I saw that they had ammended my I&E to get a certain percentage and was totally unrealistic. Since then I had a 3% payrise at work which they told me wouldn't be considered because it was only a basic salary increase but I have been sending in my payslips and they are asking for more money from me to cover this. I simply cannot afford to pay anymore
I have managed to make it through this year paying the amount that was agreed but there have been months where I have had no money for 2 weeks, I have sold everything I owned from car to DVD's just to make it through and had to be helped out by my girlfriend and family just to get through.

I couldn't move out because I didn't have the money to pay for deposit and fee'son a new rental property but my girlfriend has now moved in with me and pays me money monthly to help with the rent and bills. It now makes it so I can make it through the whole month but only paying the amount that was originally agreed. I have made a new I&E that is realistic but I am really worried that in my review I will either fail my IVA or they will demand money that I simply cannot afford.

The I&E I have set out now is below, please tell me if it is realistic and allowable.
What are the chances of this being accepted?
I have been considering bankruptcy so I can get it over with faster and get on with my life, what reason is there for me not to?

Thanks in advance for any help

I&E

Income
Clients Income 1857.00
Rent from lodger 300.00
Total Income 2157.00

Expenditure
Mortgage/Rent 750.00
Council Tax 120.00
Contents/buildings insurance 26.00
Water 50.00
Gas 45.00
Electric 38.00
Landline/mobile phone 40.00
TV Licence 11.38
Internet 15.00
Bike maintenance 25.00
Public Transport 250.00
Housekeeping 250.00
Clothes 20.00
Hairdressing 10.00
Medical/dental/opticians 20.00
Pets 20.00
Total Expenditure 1690.38

Total surplus 466.62

Charco_2

Check your PM

yade

Nothing there

Charco_2

Try now! Whoops!

(didn't realise you'd be so quick on the draw!)

yade

Thanks for your help, very much appreciated

Charco_2

I was also thinking - and this depends on your other half - it might be worth running through an I&E that takes into account more accurately your living situation. As in, you're not taking £300 off a lodger, you're living with your partner.

If she is a low earner then by dividing up your incomes and working out your joint costs paid as a percentage of the household income that might serve to lower your disposable income - effectively you'd be partly subsidising your other half and therefore keeping mmore money in your household... if she is a high earner then don't bother because you don't want her subsidising your expenses to free up more money for your creditors/IVA...

Might be worth doing a dry run of your I&Es (one with her as your partner compared to one with her as your lodger) to see which you're better off in...


Good luck!

yade

Well I spoke to Payplan today, I am not sure what I was so scared of. The girl seemed helpful and understanding. She did say that agreeing an unrealistic I&E was my big mistake when agreeing the IVA. They said that it is unlikely to get an increase without extending it over a longer period which I wouldn't like). They also said that in terms of my girlfriend they because she has her own commitments it would be best to put her down as a lodger to ensure it doesn't affect her in any way.They want to go through what I think my I&E realistically is tomorrow so I just wanted to see what you think of this as a realistic I&E that wont get bashed down immediately.

Your updated I&E

Clients Income 1857.00
Payment from Lodger 300.00
Total Income 2157.00

Expenditure
Mortgage/Rent 750.00
Council Tax 120.00
Contents insurance 26.00
Water 40.00
Gas 45.00
Electric 38.00
Landline/mobile phone 50.00
TV Licence 12.00
Internet (Need for work)15.00
Pushbike maintenance 20.00
Travel 250.00
Housekeeping 200.00
Clothes 30.00
Hairdressing 10.00
Medical 20.00
Pets 20.00
Sundries & emergencies 20.00
Household maintenance 15.00
Meals at work 30.00
Sports & entertainment 20.00
Holiday 30.00
Total Expenditure 1761.00

Total surplus 396.00

I don't know what is and isn't allowed but think that is a fair judgement. Please can you let me know if there is anything I should add/remove and whether the amounts seem fair?

Thanks in advance

Charco_2

I'll try to have a proper run through this early tomorrow - what time is your meeting?

I'm not sure what your girlfriend "having her own commitments" would mean since she'd obviously have to take care of these anyway however, whatever you think is best... I think it would likely reduce your monthly contribution AND more closely reflect the spending in your household therefore leading to a more realistic monthly surplus and a figure you can geniunely stick to.

I'll be on here early tomorrow hopefully in time to check your I&E... but it seems fine (Only you would actually know if this is a monthly figure you can actually afford to pay though... dont agree to another unrealistic figure, it will only mean you'll have to call another creditors meeting or increase the likelihood of your IVA failing at some later stage)

Good luck! (sorry, i'm not meaning to be a naesayer!)

kns_2

£20 a month to maintain a push bike:huh:

I am aloud £5 month for my car . As for holidays i think that will be a no no.

Charco_2

According to CCCS guidelines - used by all IVA providers at the insistence of the banks who created the CCCS (but have no interest in them) -

You are actually allowed £10 minimum for car maintenance and £20 maximum a month... no specified allowance for pushbikes that i can see - probably not a common occurence!

No allowance for holiday either but since you're allowed in bankruptcy you could probably argue for a small allowance in IVA too!