IVA - could do with advice/experiences from people who've been there

kst101

This may end up being quite long as is a little complicated.

XH (was not XH then of course) and I took out IVAs in February 2010. Total debt in the region of £55k. Were paying £366/month. At the time we owned our house. Moved in June 2010 which was agreed and paid the excess we got into the IVA (about £1,500). Had first annual reiew in February 2011 and this was fine.

April 2011 XH moved out. At the moment he has been paying the £366/month. I have been earning a lot more this year partly due to increased income and also benefits due to being a LP. My work is all on a freelance basis; some employed and some self employed and none of it is guaranteed. Due in part to the increased income, in part to being more frugal due to lack of XH around and just the way it has gone, I have got a surplus each month which I have been saving.

XH's parents would like to help pay off the IVA and XH had spoken to the IP about this (Grant Thornton). We had to submit our income and expenditure and mine has obviously flagged up that I am showing a surplus. Plus I said about the savings, which in retrospect was a bad idea, but given the suplus unless I was spending it all it was being saved. I know that you shouldn't be saving in an IVA, but this is since last year's annual review and so would have come up then. Also given the fact I have to pay rent 6 months in advance due to the credit problems I do need to have some amount of savings.

So if we did want a settlement figure it would need to be a lot larger so I am considering approaching my mum and dad for a loan.

The annual review needs to happen now as well and my questions are:

If we give up on the settlement, given that I am at the moment showing a surplus of £450/month (which I know is a lot but can't be guaranteed to continue for ever) how much is likely to be asked for me to pay in addition to the £366? Am presuming all of it. And I also presume the savings I have (excluding the money I have saved to pay my rent in April) need to be paid too.

Including the surplus on sale, I think about £9,000 has been paid into the IVA. If the original debt was £55k (and am thinking it may have been higher) then we would have paid 40% although can't remember what GT's fees were which would bring it down. Working on that basis settlement of about £18k might have been possible, but given my surplus over the rest of the 38 or so months, then that would be an extra £17k or so. Does anyone think they would settle for £30k?

Would love to get rid of it, as I am feeling stupid in having earned more money this year - if I hadn't then it wouldn't be there to pay to the creditors. Obviously I know that we built up the debt but it is frustrating to realise it would have been better to earn less this past year really.

Another possibility is for XH to only pay off what is in his name as most of it was in my name (although we both benefited). His debt is "only" 10k and so this could be cleared by his parents. Would leave a burden on me although GT told XH that he could make a separate payment to them to help me.

The main conversations with GT were yesterday and so I am a bit numb/confused about it all. Seriously wish we'd never got into the debt, but a bit late for that now. Any thoughts/suggestions/telling me just to get on with it much appreciated!