IP wants to increase monthly sum by £265.00 & there's no way I can afford this.

ronyag24

Hi,I'm newbie so sorry if I waffle on a bit trying to get to the point.
I took out an IVA (am in Scotland so it is called a trust deed).one year ago this month.They have just done a yearly review on me,I have been paying £150 per. month towards my original debt which was £14000.This was all I could afford at the start & it's all I can afford now,in fact,having 5 kids,I have actually been struggling a bit lately to meet £150 but have managed,just,each month,as I obviously realize how important it is to keep up payments on an IVA,and have actually cancelled everything I can on my bank account that I can so I can keep paying the £150.
Anyway after review the have written to me to say my payments must go up to £415.00 per month, as they say from my bank statements they can see I have had a payrise and so need to increase my payments.I don't know where they get this from re. my bank statements.
The one thing I think it must be is my partner is self-employed(owns own successful business,but is very ANTI-DEBT,so it would mean the end for us if he found out about this IVA,so please don't suggest I talk things over with him.I am VERYashamed that I got into debt.I don't want to lose my relationship & kid's father as well!)
MY partner has arranged through his account and all legally, a Directors loan which I don't understand how it works but basically Tax credits are worked out on this and they are £385.00 per week.This money comes to my bank account but the same day £ 200.00 goes straight back out again via standing order to my partner and this can be seen clearly on my bank statements of which IP has a copy.This leaves me with £185.00 per week and wage of £99.04 per week which totals £284.04 to me per week in total i.e. £ I get £1100.00 per month in total and I have to pay all the family's food(x7)and all 5 kids clothes,school uniform,school lunches,fuel for my car to get to work and many others(which incidentally was all taken a note of when I began IVA last year ,hence my payments have been £ 150 per month as its not the length of time it will take to clear debt (Told 5 years prob).but the fact I can afford the payments.
Basically most of the Tax credits is not mine it is my partners(I am not linked to his business,it is all in his name) and I cannot afford this increase in payments,I am sick with worry,can't sleep and petrified I will have to go bankrupt and what that entails.
I intend to phone IP tomorrow(received letter at weekend) but was wondering if anyone on here can give me some advice,will they understand about how the tax credit money is worked out if I EXPLAINN To them it is my partner's money mostly & I only get part of it.?They say if I don't amend S/O @ bank to this new higher amount,then my IVA will be classed as falling into arrears and I AM so ,so worried.
VERY SORRY this post is so long,any advice,Iwould be grateful to receive.Thankyou.

cheesedoffwithdebt

do you have a copy of the original statement of affairs and IVA proposal? It sounds to me like a misunderstanding of your bank details, nothing more if indeed nothing has changed.
I would be very upset if this happened so can understand why you are climbing up the wall, but before you speak to the IP just make sure you've got everything in front of you so you are clear about the situation and that nothing has changed . What's the £200 a month to your partner for? I am surprised the IP has been so aggressive about it- the other thing is you may want to get a second opinion as well, I know the IP is the middleman but they need to remember for those of us in debt this is by no means an easy ride and in fact more like the worst rollercoaster at an American Amusement park.
It wouldn't help getting a letter at the weekend, 2 days of imagining the worst is not good.

ronyag24

Hi,thankyou so much for the advice,I feel a little better reading it,like i'm not alone in this.
I spoke to IP this morning and they were very unhelpful.the IP said I have to put it all in writing to them,regarding why I can't afford the increase and it will be refered to a manager to deal with.I have drafted up a letter tonight and will send it in the morning.I,ll just have to wait now and see what they come back to me with!