iva modifications

niceguy393

hi, got email from advisor, one creditor wants modifications, and main creditor, if you accept, iva will be successful, they want one year extension and employment for my partner within one month, who has nothing to do with my debts, she is busy full time taking care of young 3 school going children. she has no any degree, if she does job, will be more financial problem.
One year extension is straightforward, but regarding my wife job looks more stressing for me. i write same wordings from creditors below , so please someone suggest best options,

Actual wordings from Creditor modification.
Duration:
The duration of the arrangement must be extended by 12 months, thereby increasing the overall payment term of arrangement to 72 months (a further 6 month period may be allowed for final adminstration.

Employement:
The Debtor's partner must obtain employment as soon as possible and full review of the debtor's income & expenditure must be undertaken by the supervisor. The contributions shall increase after taking into account any increased costs in respect of travel and childcare and should commence in the month following the review.

I think Duration one is straight forward modification and i can agree, but please someone can explain about Employment modifications, so please help me out to decide, is that common request of employement wording, or it will be difficult for me to deal in coming days.
No any assets, privately rented, old car worth £1000. self employed. all debts on my name, nothing with partner.

ToxtethO'Grady

Have you spoken to Business Debtline? They give free, impartial advice and are geared towards self-employed people.

As you're self-employed they are looking for sustainability of the IVA if something happens to you.

Do you have insurance or health care if you are ill/injured? You can propose you get that and they may agree it however you may have to change your expenditure to fit that in as they will likely not want to reduce their dividend.

How old are the children? If they're over 5 years old they will expect your partner's childcare responsibility to reduce so she can manage a part-time job during school time

They have only said employment, not whether it should be full time or part time.

niceguy393

job is not possible for her in these circumstances, Thought iva relieves financial stress but this look like giving more pain by creditors on unreasonable demand. she has nothing with my debts, she is doing full time job of taking care of children. Technically her job will make more financial problem. (Child care cost, Travelling, School Meal and loosing some benefits).

I wanted to pay what i can afford with my tight budget, if creditor play like that then will not get any thing from me, after research found only to accept one year extension, but not employment modifications.

more advise is better please.

fatbelly

niceguy393 wrote: »

The Debtor's partner must obtain employment as soon as possible and full review of the debtor's income & expenditure must be undertaken by the supervisor. The contributions shall increase after taking into account any increased costs in respect of travel and childcare and should commence in the month following the review.
.

I think that's an unreasonable request.

How to complain about an IVA

I actually think the first request is also unreasonable unless you have not kept to the original terms and/or you are unable to release equity from a property you own.

Edit: I am assuming you are coming up to the 5-year point on your IVA and not just starting it. From what you say

No any assets, privately rented, old car worth £1000. self employed. all debts on my name, nothing with partner.

it sounds like bankruptcy might have worked better for you.

niceguy393

That modification means you suffer everyday again instead of relieving financial stress through iva,

I have no any house, no assets. wanted to be pay what ever i can afford after tight budget, but i guess in BR average expenses , then will not pay anything towards creditors.

One year extension modification not matter, can accept, but 2nd one definitely unfair if i go to iva.

will update, any one has got any same experience ?

fatbelly

niceguy393 wrote: »

if i go to iva.

so you're not in one yet?

Go bankrupt

Income payments order will be 3 years - you might not even get one.

Just run your situation past Business Debtline to check your self employment will not cause any issues.

niceguy393

Creditors meeting on Monday, will not accept unreasonable and unfair modifications from barclaycard, all others are OK, they have voted yes without modifications.

will update on Monday see what happens. I am very confident by getting help from this useful forum.

mwarby

definitely worth bearing in mind that you can fail the IVA and be forced to go bankrupt, if bankruptcy is suitable its done in 3 years max

ToxtethO'Grady

Can you post your SOA up on here? As BR may mean moving some expenditure around but Business Debtline are the best people to speak to when you are self-employed

As FatBelly says it sounds unreasonable if the children still need childcare and already asking for an extension before the creditors meeting.