IVA Questions

butterbear

Hello all,

I was talking with a friend last night and she broke down in tears admitting her and her husband were on a IVA but were really struggling. Both her and her husband work, they hit problems when his overtime dried up. They have 3 children under 10 and 2 small dogs.

She said that the IVA Company had told her to get rid of her dogs- and that they would not allow consideration of the dogs in the budget. They have been told that £70 a week is more then enough for shopping. I believe there are a few other issues as well but she only discussed these!

I didn't feel that this was right, when I had a DRO we were allocated £300 a month for 2 adults and 1 child. £70 a week averages out to £303 a month. I know we managed OK on the budget my that was only 1 little hungry mouth!

My question is what can she do? can she change the IVA provider? I'm not sure who it is but it a fee paying one! She was so upset I'd like to be able to give her good advice.

Thanks in advance.

Foxy-Stoat_3

butterbear wrote: »

My question is what can she do? can she change the IVA provider? I'm not sure who it is but it a fee paying one! She was so upset I'd like to be able to give her good advice.

1. Look at her monthly budget again, try and change life style to save money

2. Speak to the IP over the drop in wages/overtime

3. Let the IVA fail and go bankrupt

She cannot change provider.

How long have they been in the IVA?

butterbear

The drop in overtime was what caused them to turn to an IVA.

They are not setting the budget the IVA company is, they are being told what they can spend but without considerations being taken to their responsibilities. This is what struck me as wrong.

I don't know how long they have been in the IVA, as I said she broke down last night. I had suspicions they had been struggling as there was always an excuse not to get together, join days out etc even if it was a walk round the woods- turns out they are worried about using the car because of the amount of petrol they could use.

I was under the impression that an IVA should be a way of resolving money issues not make you struggle even more! Hence asking if they had any other options.

Foxy-Stoat_3

If they took out an IVA then they were probably facing bankruptcy due to debt spiraling and credit limits being reached etc, so they where struggling anyway, unless they were badly advised.

There are limits as to what you can put down for bills, but for them to say get rid of the dogs is a bit harsh, unless vet bills are eating into the budget too much, as these will be unknowns and no way of planning if Rover eats a piece of barbed wire or jumps out of a window and needs treatment. I know they are probably like family but if they are not paying rent/mortgage/food/electric because of vet bills then you really need to make harsh decisions for your family's sake.

Cannot comment if the IVA is right for them or not with the information, but I doubt you will be able to ask all the questions as she is probably in a low place, hence why they have been hermits.

Best get her to post on here, so she will talk to a PC screen rather than a friend, maybe easier to open up.

They need to look at their finances and monthly budget with what the IVA has been set, if the numbers do not add up then the IP needs to arrange a variation meeting or fail the IVA as if they have just started, then next 5 or 6 years will seem like a lifetime.

They shouldn't be paying for the IVA though, this is free with most providers so thats the only eye brow raising point.

Good luck with helping them !

butterbear

From what she was saying they managed for a while when the overtime dried up, expecting it to pick up again- which it usually does in his occupation. But it didn't, the overtime pay was a substantial amount so when it stopped they really noticed it. They managed for a while but the noose tightened like it does with debt!

I will tell her to check her budget carefully

Thanks

Foxy-Stoat_3

I used an excel spreadsheet and still do now, really helps me budget and plan all bills a couple of years ahead, well apart from chirstmas and birthdays but I tend to wing them anyway! If other they told me budgeting at school !!!

Mrs_pbradley936

I know it seems harsh but pets, and fancy food are NOT necessities. Living beyond their means is what gets most people into debt and I think the provider is being honest. If you do not have a fairy Godmother that will take the debts away then you have to face up to reality. That means working out the difference between what you need and what you want. If not you will never be out of debt.

colrees

Hi All
I am in my last 5 months of my IVA now, I have been in it 5Years 7Months
I have just had a letter from my IVA company saying they want to extend it by a year, same monthly payments, due to the supposed equity in my house
Obviously I dont want to do this. Are they allowed to change my agreement at this point?
If so (and i guess they are!) what am I best doing?
What are my options?
Any advice greatfully received!

Colin

Foxy-Stoat_3

colrees wrote: »

Hi All
I am in my last 5 months of my IVA now, I have been in it 5Years 7Months
I have just had a letter from my IVA company saying they want to extend it by a year, same monthly payments, due to the supposed equity in my house
Obviously I dont want to do this. Are they allowed to change my agreement at this point?
If so (and i guess they are!) what am I best doing?
What are my options?
Any advice greatfully received!

Colin

Maybe start your own thread.....but I would say read your agreement and see what it says about equity release and extensions if there is no available equity.

Good luck

DorisTrousers

colrees wrote: »

Hi All
I am in my last 5 months of my IVA now, I have been in it 5Years 7Months
I have just had a letter from my IVA company saying they want to extend it by a year, same monthly payments, due to the supposed equity in my house
Obviously I dont want to do this. Are they allowed to change my agreement at this point?
If so (and i guess they are!) what am I best doing?
What are my options?
Any advice greatfully received!

Colin

Do you have Northern Rock as a major creditor by any chance?