Considering an IVA - Please can someone answer these simple questions!

FoggyBrain_2

The saving you make by changing tariff would be reflected in your annual review. My understanding is that 50% of the net increase in your disposable income ( however arrived at) will be payable over into the IVA. I am sure IP's are aware that people change tariffs, suppliers etc, sometimes saving money, sometimes losing it!

Mercyknight_2

FoggyBrain wrote: »

Some do, some don't. I didn't write to any of mine, nor did I make token payments. However, it only took 6 weeks to set up my IVA, so they didn't have the time to really notice. At the end of the day it will make little difference to the voting, which, on the whole, is conducted by appointed accounting firms (The Insolvency Exchange, Grant Thornton, KMPG and the like) and is based on economics as opposed to case history.

Sorry just wanted to bring up another question regarding this.

It seems a little bit cheeky what I'm about to ask so apologies in advance. I am on a DMP with CCCS, I'm thinking of pulling out of it, not making a payment this month apart from a token payment, and then next month starting the process of my IVA so hoping to miss another 2 debt payments, thus totalling £900 (£300 per month) saving which I can use to get bits and bobs needed for the term of the IVA such as a fridge etc... What do you think? Would this work? What are the consequences?

FoggyBrain_2

Good plan, providing your are confident the IVA will be accepted (which is a fair bet if the IP is willing to put it forward). Most of us squirrel away the "missed" payments to save for contingencies --- which often means new fridge, washing machine or car repairs during the term of the IVA.

Are you getting CCCS (CCSVA) to arrange the IVA ?

Mercyknight_2

No I was looking at another company with really good reviews from IVA.com who seem pretty confident if I put if forward that it would go through, if it didn't could I just write to my creditors and re-arrange the DMP?

FoggyBrain_2

That's the usual course of action --- must say that I have seen very few fail of late. The regulars on iva.co.uk (most of whom are on iva.com) are all an excellent choice, there are a few I'd be hard pressed to chose between. Best of luck.

Mercyknight_2

Ok, another question...

I'm currently on a 5 year tracker mortgage with 3 years left as of September. If at the end the of the tracker I go on to SVR will I be able to firstly get a new mortgage deal? And if not, what if my mortgage payments go up by say £200?! What would happen to my IVA?

FoggyBrain_2

OK ...

Unless the Gods are truly smiling upon you, you will not get another mortgage deal. You will just revert to SVR. If you COULD get a new deal the interest would make SVR seem attractive anyway!!

If your mortgage payments increase you will need to discuss a reduction in payments with your IP. This might result in an extended term to make up any shortfall, but will all depend on the circumstances at the time.

Mercyknight_2

If I have current account with Santander - no debts with them, when I go onto my IVA will I still have to change bank?

FoggyBrain_2

You won't have to -- but there is a good chance that, once Santander get wind of the IVA, they will close it anyway. I am not sure, but I think Santander aren't particularly IVA friendly. However, if they do close the account, they will presumably give sufficient notice for you to change to an IVA friendly bank like Co-Op.

I note you have no debts with Santander --- however, their fingers are spread wide. Are any of your creditors in the same group of companies?

Mercyknight_2

Lloyds, Halifax and HSBC...So should be ok...