Problems with my IVA 16 Months in... Going BR an option?

jsmith9156

Hiya All, Hoping for some advice!

My IP has sent me a letter stating that some of my creditors have sent in revised Balances and that my IVA has a current shortfall of £790. They are saying that I need to look at paying extra to make this shortfall up, (I currently pay £275 a month), I don't have much money left now, but thanks to the fact that I don't have council tax etc to pay because I live with my dad that I'm managing the £275. I pointed out to my IP that I'm still paying for two mobile phone contracts (don't ask) that they said couldnt be included as credit, and that I couldn't put them both on my SOA as it would mean my IVA was unlikely to go through, and also increased diesel costs to get to work but they don't seem to be budging..

I don't know what to do!!! I thought that it was all going so well up til this point Anyone have any ideas?

Thanks
James

tigerfeet2006

Hi and welcome to the board,

Can I nake an educated guess and say that your IVA was not arranged through or with the help of one of the debt charities. From what little I know about IVA's and what you have said here I would probably say that you should never have been given one :rolleyes: and it's not suitable for you.

Please give National Debtline, CCCS or the CAB a ring and have a chat about your situation.

NekoZombie

Did they say how much extra you would have to pay a month? I think you need to know what the figure could be before you dismiss it, especially if you feel you are managing on your IVA.

jsmith9156

Tigerfeet: I'm almost embarrassed to say it, But my IVA is with Debt Free Direct... If i'd found this site beforehand I would've never of chosen them...

I was coping okay until Jan's payment, which I paid 13 days late. On the 1st my contract at work was amended from 40 hours a week to 37. My IVA was worked out on my 40 hour contract, So shouldn't I be paying less not more? I'm a bit confused. It didn't help that I was in Hospital for a couple of days a few weeks ago with a long term Illness I have. I don't get sick pay so my money's right down at the moment. ARGHHH!

I currently have around £40 to my name and my next IVA Payment is due 1st Feb
James

jsmith9156

I just wanted to add my current I & E from my IVA Agreement, and see if any of you think some of it's a bit over the top. Most of the figures are what DFD told me to put.

Monthly Income: £1066

Car Insurance: £57
Car Tax: £11
Fuel: £200
Vehicle Maintenance: £30
Food & household goods: £100
Personal Hygiene: £30
Clothing: £25
Contingency: £50
Medicines: £10 ( I but a yearly precription pass for £98)
Mobile Phone: £35 (not including the other contract that is £29)
Motoring Membership: £8
Sky:£22 (Now not paid for by me)
Internet: £18
Rent: £190 - This includes my part of the Gas/Electric/water/rent/council tax

Total : £786 Leaving £280 spare with £275 of that going to IVA

My monthly pay now works out to(I think): £995 Leaving £209 to pay IVA

Am I going wrong somewhere?

jsmith9156

Well I've spoken to National Debtline this morning who have agreed that my IVA plan is unworkable and that Bancruptcy is an option,

Would anybody here be able to help me with my I&E please?? I'm so confused by what you are and aren't allowed!

Thanks
James

fermi

You can start by adding in:

Holidays £40
Haircuts £10

Up the Food & household goods to at least £150
Up the clothing to at least £40.

Others have a better idea on budgets than me, so they can probably add others or tweak those figures further.

Have a read through (beware long read):

http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part7/part2/part_2.htm

to see how the OR looks at discretionary expenditures.

DickyWiganer

Hi James,

I had an IVA with DebtMatters, that started in May 2005 and looking back it was the worst thing I could have done.

I was in a similar position to you, living with parents and with no real assets. I kept up the payment of £250 a month for 18mths but it just became unmanagable.

When I looked into the figures as well Debtmatters claimed approx 80% of the money per month and provided very little service. I was constantly being harrassed by creditors even with the IVA.

In the end I decided that bankruptcy was the best option as I literally had nothing to lose and as of the 17 Jan I am now officially bankrupt and much happier for it.

All the best

Richard

jsmith9156

Thankyou fermi and DickyWiganer for the info, Just working on my I&E and i'll post it up later

James