Deductable items to reduce IVA payments

Burton77

My partner and I have been in an IVA agreement for 5 months now but are finding the payments hard to meet. We can just about manage 4 week pay periods but 5 weekers are impossible (by several hundred pounds.)

I've tried talking to them to explain that we estimated and undershot expenditure when we were fast tracked (rushed) through the agreement but have been told for example that £69 a week for food is a set amount and the amount allowed cannot be upped, the 'helpful' chap then suggested I shop at Aldi!

Because they are not being overly helpful can anyone suggest items that can be effectively knocked off before they help themselves eg. travel allowances and what the thresholds for these are so we can have another look at things and have something resembling quality of life again.

Many thanks in advance.

Tixy

Which areas are you finding you spend more than you originally listed? or are you spending in areas which you didn't mention at all when you originally prepared your income/expenditure statement?

There are not set amounts for any costs, although there are some industry guidelines for certain items, depending on your family size/circumstances etc. But even for these items creditors will sometimes accept a higher amount if there is an explanation as to why the cost is higher than usual.

Eliza_2

Why not put a statement of affairs up here or on the debt free wannabe thread and other very knowledgeable people will have a look at where you might be able to pull back, for example, £69 a week is really a good amount for food for 2 people, perhaps things like food planning and stepping down a brand would help you. Then when you have your review you will be in a better position, with evidence, to ask for a variation, if possible.

...and ps, if you don't already do so, shopping in Aldi is good advice!!

longtermplanner

hi Burton,

If you can post a SoA using this calculator http://www.stoozing.com/calculator/soa.php including what you think your REAL spending is and then put by the side of any lines what you and your IP agreed for the IVA, we could say how reasonable it looks.

HOWEVER the problem is that even if it looks unreasonable, you have committed to it and there may not be a simple way to get this changed. It would help if with the SoA you also say:
- how large the debts are that went into the SoA
- whether this is just your SoA or a joint one with your partner
- if you have children, how old they are
- whether you expect there to be any changes in your family or work over the next 5 years
- if you have a house - what your house is worth, how large your mortgage is, is it repayment or interest only and if fixed rate, when does the fix end.

thinkpositive1

Burton - when I was in an IVA, I had to decrease my IVA payment due to less income. My IP negotiated a 40% deduction just over a year into my plan.
Further reductions in my own income made it hard then impossible to sustain my IVA unfortunately but a good IP is there to help you if you need to renegotiate your plan with your creditors. I was always told by my IP "it's about what works for you and is affordable to you".