advice please

lucieloo

Hi all, i have a few questions if anyone could please help with i would be very greatful.
Firstly my annual review is now due and they always send the original income and expenditure form. my question is that i have now been in my iva for 5 years can u up the allowance for food and petrol and things? they do cost more now? for example 5 years ago i was allowed 130 a month for petrol now i put at least 160 a month in, so can i up that?
Second question is i am in year 5 now of my 6 year iva, i have had 8 payment breaks for one thing or another so i have 20 payments left so to speak. I am currently off work at the min with a broken foot and i have a neck problem which im going to see the doctor with this morning after a fall. My job is a bit iffy too as my boss is trying to put his house up for collateral for a business loan that is supposed to be helping his terrible cash flow!! some months he will not pay certain people on time. And to top things off my son has got to have a major op on his head shortly which i will need time off work with him to recover. I am sick with worry as i feel that my iva is going to go pear shaped right at the end. My nephew has offered to give me a lump sum and i was wondering what you thought? If it may be accepted.

Original debt - 41,463
Payments made - 12 x 260 = 3,120
40 x 370 = 14,800
Total payments = 17,920
My debtors wanted 48 % back
I have a equity clause but i know that i am in negative equity so they wont get that. My nephew has offered to give me 3,500 to help. Do you think this would be enough? i am worried sick with everything:(

lucieloo

anyone got any help? please x

Anondebtadvisor

If you have have a change of circumstances which means you can longer pay £370 per month, your offer may be attractive to your creditors.

Have a chat with your IP as they will be in the best postion to advise you, if that is your best offer ask them to call another creditors meeting offering the amount as Full and final settlement.

Empahsis that the stress of the IVA as well as your other problems if making you ill

FiatFan_2

Certainly bump up your allowances as the cost of living has increased quite a bit in the last 5 years especially food and fuel. I think it would be worth keeping it less than 15% as then it'll be for your IP to decide without the need for a variation meeting, unless your prior circumstances cause this to be different.

It would be worth asking about a F&F offer, i think the rule of thumb is equal your remaining payments or offer up the £3500 an see what your IP suggests.

lucieloo

ok many thanks for replies. Fiat when u say 15% what does that mean? sorry i am a bit thick x

Anondebtadvisor

Your IVA company can reduce your contributions by upto 15% without the need to go back to creditors - so in your case by £55.50p taking payments to £314.50p

lucieloo

so i just rang my iva company and told them my situation, they said that 3500 wasnt a good enough offer as i may be off for a few months but they could see me probably going back to work soon so payment break would be sufficient. They also told me that i have a 6 yr iva which i knew and that if there is no equity it will then be a 7 yr iva!! im livid i dint know this. I said i wanted to put offer forward and she reluctantly has but told me its a waste of time as my payments that are due equal 6600 and they were hoping for 8k equity which i know we dont have so 3500 wont touch it. Well she has eventually put it through after asking for sick notes from my doctor and a couple of other things so ill just wait and see now but i wont hold my breath and ill congratulate myself for having an extra yr on my iva. I just want to pack my bags and run.

Anondebtadvisor

Its not the IVA companies decision, it is one for the creditors so let them decide if it sufficient.

I am sure they will look at it favourably given the circumstances :-)

lucieloo

They said they have to get the ip's approval before being put to creditors and if the ip didnt agree with my circumstances then it wouldnt even get to the creditors. Why would the iva company seem reluctant to put offer forward? It wasnt until i said what if i want to try offer she was like ok but we will have to do this and do this and i said yes thats fine.I also explained about my job and she said but your not out of work yet are you which is stictly true but dont think it will be long though if im honest.seems bizarre to me. Thanks for reply x

lucieloo

Just looked through my proposal and found this-

where it is demonstrated after month 54 that the equitable share is less than £5000 (gross) the property is to be excluded from the arrangement without extending the existing term.

Which i know is already 72 months so does this mean they cannot extend it to a 7 yr iva like she has told me today? If this is correct then and i am in negative equity then that means if i was to continue with my payments if i could they would get 7.5k and i have offered them 3.5 today. Do u think i should ring tomorrow to correct her on the 7 year clause or will it get picked up anyway?

UpToMyNeckInIt

I think what it means (in most cases anyway), is that if the property has less than £5k equity, you are not required to attempt equity release, AND there is no extension to your original term - the IVA concludes.

This is as opposed to if you had more than £5k equity, where you then have to attempt equity release up to 85% ltv. If you cannot obtain a remortgage, your IVA payments are extended by another 12 Months instead.

I am a little unclear regarding the duration of your IVA. It may well be that, because you have taken 8 payment breaks, these have been added on to your term at the end instead - all normal if that's the case.

Sounds like you are dealing with a case worker who is a bit of a numpty. Forget emails and phone calls, spend a few minutes composing a well-worded letter, marked strictly for the attention of your IP by name.

State your case for proposing a F&F offer as you have done here. However, your case would have more merit perhaps if you had a definite redundancy notice (saying your job is 'a bit iffy' may not be a persuasive enough argument).

That said, it sounds like bad news if your boss is having to remortgage his house to keep the company afloat. Are you sensing that the company you are working for is about to go under?.