IVA Expenditure Allowance

UpToMyNeckInIt

Your IP is actually supposed to act in the capacity of 'honest broker' ie: working in both the interests of the customer AND the creditors.

Just one point to add, is that if things get really tight because of a long-term net drop in income, the IVA protocol allows your IP to decrease your payment by up to 15% without having to approach the creditors. However, dependant on the wording of your individual contract this shortfall may or may not have to be repaid by way of incresed payments further down the line, or by extending the term of the IVA. (From other forums: I know of some customers not having to repay the 15% shortfall, but others having to).

Good luck to those of you 3 Years in - you have more of your IVA behidn you than ahead!!!

debtfree2016

Hello there,
I'm fast approacing my 2nd review and have a meeting booked, sadly my mortgaage went from INT only to Repayment adding and additional expense of over £400, my IP said the best they could do is reduce the repayment by 15% (fees) totalng £116 i still have to make up the rest by cutting back on everything. My only other option would be to extend the period of the IVA by 1 year. I have decided to grin and bear it and hope my expenditure doens't increase.

Max_Maxwell

cheesedoffwithdebt wrote: »

But I'd take heart frankly- my understanding is that many IVA's fail in the first year.

If you, like me, are three years in, could I suggest that the worst is probably over now?

I agree, cheesedoff, at 3 years in there is no way I'm letting this fail. When I started the IVA 6 years seemed an eternity but it's surprising how quickly the years have passed. Three years to completion doesn't seem so far away now. I just don't want to be wishing my life away.

I am frustrated at the inflexibility of the plan and, as UpToMyNeck points out, the IP should be the honest middleman. But when that honest middleman takes a percentage of the funds realised (please do correct me if I am wrong) then they won't be faling over themselves to reduce or cap payments and impartiality goes out the window.

I'll be going meticulously through my figures again this evening before submitting them. It'll be like a less entertaining episode of Play Your Cards Right with Brucie.

UpToMyNeckInIt

Max,

You are nearly as cynical as I am!!!

You are correct: Most IVA's have a clause that allows your IP to claim 15% of any 'additional realisations' (over and above your agreed minimum dividend).

It's worth the extra work with those figures if it results in a lower repayment.

Good luck with it all.

UpToMyNeckInIt

An important update:

Google 'Stepchange Budget Guidelines'. 4th or 5th hit down the list provides a 'doc' link to the 2012 guide!!!

lucieloo

UpToMyNeckInIt wrote: »

An important update:

Google 'Stepchange Budget Guidelines'. 4th or 5th hit down the list provides a 'doc' link to the 2012 guide!!!

You are amazing uptomyneckinit

UpToMyNeckInIt

...I've taken to wearing a cape and my pants over my trousers!!!

Just fortunate really. My IVA company is asking for my review paperwork, so I thought I would again attempt to seek out this stuff - i cannot have been there long.

Hope it helps everyone who is interested.

Depth_Charge

UpToMyNeckInIt wrote: »

...I've taken to wearing a cape and my pants over my trousers!!!

Just fortunate really. My IVA company is asking for my review paperwork, so I thought I would again attempt to seek out this stuff - i cannot have been there long.

Hope it helps everyone who is interested.

Hi

Nice one UTMNI

I was just wondering where or when the March 2013 guidelines will be available!

Just comparing the 2012 ones with the recently updated Common Financial Statement (CFS) figures

Oh dear

UpToMyNeckInIt

Yes, that would be typical!!! ...then it will take another 6 Months before it is published.

Very frustrating that no IVA company I've come across uses the (presumably more generous) CFS figures. Anecdotally (and rather cynically), I have heard that this is because creditors insist on use of their Stepchange figures for IVAs.

Also annoying that whatever the version, it is based on ONS figures taken the previous Year, so you could argue that they are already 12 Months out of date prior to being published.

As it goes, I am still living within some of the 2011 allowances. I put that down to being used to doing without in some areas pre-iva. Plenty of slack to play with on the i&e form to keep my payment as it is.

Depth_Charge

UpToMyNeckInIt wrote: »

Yes, that would be typical!!! ...then it will take another 6 Months before it is published.

Very frustrating that no IVA company I've come across uses the (presumably more generous) CFS figures. Anecdotally (and rather cynically), I have heard that this is because creditors insist on use of their Stepchange figures for IVAs.

Also annoying that whatever the version, it is based on ONS figures taken the previous Year, so you could argue that they are already 12 Months out of date prior to being published.

As it goes, I am still living within some of the 2011 allowances. I put that down to being used to doing without in some areas pre-iva. Plenty of slack to play with on the i&e form to keep my payment as it is.

Hi

Yes, it is strange, especially considering that Stepchange are an independent, impartial charity, you would have thought they would be up on this really, it is quite important for affordability and sustainablity, maybe they will read this and comment:)

And of course, maybe there would not be as many failed IVAs and people struggling to manage with payments including other debt remedies etc

I had an interesting discussion with someone from TDX about the Stepchange & Common Financial Statement allowances in IVAs a while ago, yes very interesting it was too:)

Not a perfect world though and we must carry on regardless