A question about : IVA issues..confused
I recently contacted my IVA company and explained how I have struggled with payments this last twelve months and yet I have been paying etc however they still demand the amount they say I should have at disposal based on household income expenditure.... this is where I get confused... I live with my partner and have done for 3 years out of the 8 we have been together but the house is my partners he pays for all the running costs bills and shopping... i only pay for the childcare and what I need to pay for ie , car petrol the odd bit of shopping and I buy all the kids clothes ... to fit in with work and family and to keep childcare costs down I do casual work and the money/income is of an irregular amount each month..... anyway it is now clear to them after me telling the for how long that I am struggling to pay... they say if I fail the IVA then the 800+ I have paid in doesn't go to the creditors until I have paid in 1500... so my money is with the IVA company and will remain with them even if i decide to fail it...... can they do that... I was told by them sometime ago in the last two years that they release money to creditors on a quarterly basis..... so what's the truth and can they do that.. they have told me to ask my partner for this so called disposable cash....errrrr what disposable cash....????? or I could go bankrupt but it would cost me 700.00 up front... i haven't got that up front, I'm annoyed that the money I have already paid hasn;t gone to creditors... have I been stupid and not understood somewhere 
bit sad... don't know what to do HELP with some answers anyone .. ..to top it off they end the conversation with if you don't continue the IVA and make your payments then all the interest of the last 2 years the creditors froze will be added to your debt and they will come calling again and hassle you and you will have people knocking on your door....... Merry Christmas to you too I thought..... I have to say I have been making small payment but no where near what i'm supposed to each month.... however I did try telling them months ago and got no repsonse via phone or email.
Best answers:
- Sounds to me like an IVA was an inappropriate debt solution for you? Were you perhaps, initially, a bit ''frightened'' of the prospect of a Bankruptcy?
How much debt do you have at present? - hi Alistair... I was initially in a debt management plan paid into that for a few years, I was in a better financial state than with regards to affordability to pay things off, Lookin back I shouldn't have even done that, they seemed briliant and were great but my debts never budged much so they then put me forward for an IVA , in all honesty I've been in it 2 years and I'm just gutted to think that if this fails... I will have paid over 800 for nothing none of it ever went to creditors and I can't get it back if it fails..... I should have just gone for bankruptcy I did say to them why wasn't I offered an IVA years ago but my debt level was too low then when they changed the rules I then qualified.... either way my debts are still there and two of those are old joint debts from my failed marriage, I got landed with them cause my ex doesn't work or pay a penny towards them my total debts are over 20'000 and I don't qualify for a DRO apparently... i would go for bankruptcy cause I know it wont affect my partner, but I am scared they would take my car, my partner brought me a new car when my old one started costing too much to maintain.. and Its not brand new is 2007 but its bigger for fitting us all in on the school and nursery runs and I need it to get to the hospital where I work. I haven't got 700.00 to pay for a bankruptcy, such a mess , and I could just do with keeping the IVA going, but they want the full 100-150 a month they think I should have, but I we/havent got it
- I admit to being no 'expert' on IVAs [considering them to be spawn-of-the-devil!]...so you are better awaiting the responses from others, with regards to how you complain about your IVA, and the way it is being handled.
IN response to your worries re-Bankruptcy?
Does your job actually preclude Bankruptcy? [if so, IVA is your only real option]
Concerning the car? If your partner can provide the financial evidence that the car was paid for by them..then your partner is the 'owner' of the car, regardless of whether your own name is on the V5c document.
If this evidence is available [bank statements or receipts, etc]...then it is not your asset, so the Official Receiver cannot 'claim' it as such.
With regards to the BR fees [Ј700]....don't forget, if the IVA fails, you no longer need to pay anything other than priority debts.....so any money this saved could be used for such as a BR petition?
Not the end of the world at all. - So you have paid Ј800 into your IVA for the last 2 years?
That is Ј33.33 a month and you have been struggling with the payments, yes?
What am I missing?
Can you not afford the payments or ask your partner to give you less than Ј10 a week for the next 3 years and have the rest of your debt wiped off?
You are only going to pay less than 10% of your total debt, stick with it. - I know how you feel not affording the IVA payments.
I had been in my IVA for 2 years when I discovered that I qualififed for a DRO.
I had paid in Ј2790 to my IVA provider; ALL of this will be swallowed up by their fees, and nothing been paid towards the debts.
I have reported my IVA provider to the Insolvency Practitioners Association who are the governing body about complaints about IVA's.
Their website address is www.insolvency-practitioners.org.uk.
Contact them if you need to for advice; they have accepted my complaint and are investigating the circumstances of why my IVA failed due to soaring payments which I could not afford.
Good luck xx - Hi all, thanks so much for the replies, Yes I did make only small payments , and always struggled with the full monthly payments, but did meet it sometimes, and there has been some mat leave and reduced pay and a period of in between jobs in there too and never at any of these times did they accept reduced payments or proposals its do or die with these people.... and I have struggled all along, that's it in a nutshell despite my efforts, I would rather it not fail, my OP was a bit waffled and prob confusing just trying to get it all out there to get some advice back. But all your advice has been totally appreciated, sometimes its just knowing that I'm not alone in this.....I do think I should at least complain, their lack of communication and not informing me when my case adviser changed or left the company was ridiculous, emailing someone for 3 months who had left a long time ago, I send payslips, p60's and tax credit forms and bank statements to prove my out goings and incoming, I give them a list of what my partner owns/pays and still evey time I contact them by phone, they ask for all that again on the phone yet I email them every time there is a change by even a small amount to anything.... they asked my why my nursery fees went up??? I said well..I need to work, and one of my daughters attends two places the private nursery with her sister, and a pre-school for one day, which is 12.00 a day including lunch... as that is where we hope to get her in from September as she starts full time school, I was so angry.. and a bit snappy with him I just said I have to work and I have to make sure my children are looked after.....or I don't work and that didn't work for me financially either, because I tried it..... damned if you do damned if you don't.
the company are going to ring me back next week and have another chat with me... I am going to see if they can just hold until my annual review and let me keep paying what I can till then.....well probably get a big fat no!
Looking back ..I really wouldn't advise anyone else to fall into the fantasy of an IVA.... unless you can make the required payments without fail... cause even if your circumstances change and you need to reduce your payments... that's not an option... they will still tell you what they want minimum. no better than the way a creditor chasing you for money would handle you........... it's not an easy fix option for people who would struggle like me to pay..... you live and learn but I am seriously going to look into the bank ruptcy option... can any of you tell me what happens ie: how long does it stay on on your credit score ref. and do banks react ie, if I approached my bank to tell them would they close my account or if I asked would they let me keep it open......??? I am with the Natwest and I have head they are good with things like this and maybe willing to let my account run on... its a basic account with just a debit card for making payments and and I have my wages paid in there and I pay for things like my car tax and service plan and nursery out of there. - P.s. another reason I don't want it to fail is that another sub company/dept attached to the iva firm Kingsgate insolvency, are doing all my PPI investigations , Financnial Logistics ... these people are actually quite good, they call me every 6 weeks to update me even if there is no update or they are still waiting on feedback or if I need to sign anything or provide anything.... If my IVA fails do these people then stop working on my PPI cause it's a free service attached to all my IVA company ie any money if any, got back from PPI would be used to pay towards my IVA debts
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