IVA advice need for struggling couple

[sugg1]

Hi,I am asking for advice for a close friend who has a IVA and her payments are about to increase to a £1000 amonth.....

 

At the moment her and her husbands repayments are £750 amonth and this is for the IVA over 6 years instead of the normal 5 years the reason is that she says the creditors would not agree to payments over 5 years so it was increased.

On top of the £750 amonth they were paying for a car loan which was not included in the IVA (i don`t know why) but i could always ask her if needed plus husband was paying child maintaince for his daughter.

The IVA company want them to now increase their payments to £1000 amonth because the car loan is now paid off and the daughter has now turned 16 and child maintaince has now stopped ,but my friend and her husband are struggling to live on the income they have coming in and with everything going up in price they are going with out food sometimes because they can`t afford it.

What i would like to know is can the IVA be increased by £250?

 

Another question regarding this IVA is that when they company worked out what they owed each credit card company/loans ect they were taking the added interest into account prime example are the following two.....

 

1/ My friend had a loan for £8000 and when the IVA company took them on they said the loan total was £12000 which included the interest on the loan.

 

2/ The husband had a loan that he had taken out before he even met my friend and it was for £40,000 and it was to be repaid over 5 years ,when it came to them having the IVA there was less then a year to pay on that loan but the IVA company said they owed £40,000

 

Can the IVA company do this ?

[sequenci]

On top of the £750 amonth they were paying for a car loan which was not included in the IVA (i don`t know why)

It may have been hire-purchase which is classed as a priority debt since the money is secured on the vehicle.

 

What i would like to know is can the IVA be increased by £250?

potentially, i think your friend should really complete a new income/expenditure form to see how things standr for them. Who is the IVA firm by the way?

 

Is your friend in mortgaged accomodation?

 

1/ My friend had a loan for £8000 and when the IVA company took them on they said the loan total was £12000 which included the interest on the loan.

The IVA firm should have obtained the current balances from the various creditors.

2/ The husband had a loan that he had taken out before he even met my friend and it was for £40,000 and it was to be repaid over 5 years ,when it came to them having the IVA there was less then a year to pay on that loan but the IVA company said they owed £40,000

that is VERY bizzard. I would be looking to send a SAR to the loam firm to get a full breakdown of the debt.

 

This does seem a little susepct to me.

 

Can the IVA company do this ?

[Tawnyowl]

How long are they into the IVA.Who are they with.How long is it since they filled a I@E Form in.Who advised them to go on a IVA.It sounds like the IVA could fail if nothings sorted out soon.Some questions may be answered here,Things you should know and do before you start an IVA | IVA Guide I understand the going without food,when it gets like this something is wrong.I have just been reading that there are quite failures of IVAs set up in the last couple of years due to increasing living costs.Can a IVA be increased, yes i believe there is a annual review,as for struggling to make payments, speak to the IP who will be able to look at the reason for this, and advise you on what can be done.Have they spoken to them.As for 1 and 2 -wow,i hope theres been some mistake. Others will advise soon i hope.Do they own their own house.I suppose bankruptcy wasnt really a option for them.Lucky they have a friend like you to help them.Tawnyowl.

[sequenci]

BTW pleased excuse my poor typing on my previous post, god knows what happened there!

[Tawnyowl]

Sorry Sequenci,was writing this for quite a while,didnt see you had posted.Will be interested how this turns out.Best wishes to all,Tawnyowl.

[sugg1]

Thank you guys for your replys so far i will be speaking to my friend on the phone tonight and will find out the answers to the questions asked so far.

 

I can answer one of them for sure and that is they don`t have a mortgaged accomodation?

 

I suppose bankruptcy wasnt really a option for them

At the time my friends Husband was in the armed forces and she believes that if your in the armed forces you can`t go bankrupt.

Plus my friends view has always been that they borrowed the money so they should pay it back even if they struggle ,But not to have to suffer as bad as they are going to with the increase in repayments.

 

Who advised them to go on a IVA.

They got scared due to having a letter or letters from DCA`S threating them with court action.

[Tawnyowl]

I understand the view about struggling to pay debt back.But it can overwhelm you,re-eating ,can become to much to bear.As for the army i believe An individual who has a receiving order in bankruptcy made against him or files a petition for bankruptcy or who is unable to meet his financial commitments is to report the facts immediately to his commanding officer. The commanding officer is, if necessary, to report the matter, with his recommendations, to MOD (PS2(A)) through the chain of command.

 

b. (Army only.) Detailed instructions on dealing with cases of civil debt, including bankruptcy, involving serving officers and soldiers are contained in

Army General and Administrative Instructions, Volume 3, Chapter 89. but i believe it has been done,and think for some security clearance afterwards wasnt a problem.However i stand to be corrected,perhaps someone can give the answer to this.As it sounds like he isnt in the army now,i suppose it does become a option,however remote.Even i suppose if his wife is in the army still.I personally would want the brave soldiers etc walking around with no worry of debt if its overwhelmed them,they have enough on their plate.Tawnowl.

[sugg1]

Hi tawnyowl, Thanks for your reply above But my friends husband was in the Navy LOL ,i know how senstive these armed forces guys can get about being classed in a diffrent group LOL.

Anyway he is out of the Navy now.

 

How long are they into the IVA.Who are they with.How long is it since they filled a I@E Form in

 

The are 2 years into the IVA now ,The company is called Tenon ,and I am unsure right now how long it is since they did a I@E form.

 

I have just been reading that there are quite failures of IVAs set up in the last couple of years due to increasing living costs.

My friend said she had received a letter from a IVA watchdog saying about problems with IVA that were taking out a couple of years ago and that they might be able to claim compensation,now i don`t know if this is just one of those companys who you have to paid money to ,to help you out like these companys who charge you to wipe off your debt when in fact you can do it your self with DCA letters ect (which i have done myself thanks to this great forum) and also claim back mis-sold PPI`s.

 

speak to the IP who will be able to look at the reason for this, and advise you on what can be done.Have they spoken to them.

Not that i know of right now.

 

I have asked them to find all there paper work and agreements they have for their loans and credit cards and said that they can then send them the subject access request letters.

 

I was reading a threw things on the internet and i see that they could possible cancel a IVA and pay the creditors threw like a DMP is that possible ?

 

Also My friend was saying that when they took at these loans ect that they had to take out the PPI ect as part of the loans and she was wondering if they can claim on the PPI or even go threw the process of claiming being mis-sold PPI (which i am going threw right now with Blackhorse)

[debtinfo]

Is the letter from the IVA council, if so it is a [problem], they were fined in the high court last year, can you post their letter in your next post

[sugg1]

Hi debtinfo, I can get hold of the letter in the next couple of days and will then post it ,But i will let my friend know what you have said.

Thanks for the heads up

[Tawnyowl]

Just in case anyone from the forces comes on with debt problems help here,Debt Advice for the Armed Forces - Main Menu

Debt and your job in the Armed Forces, NHS and Fire Services

 

Working with the UK's armed forces and emergency services as a soldier, sailor, airman, doctor, nurse, police officer, fireman or paramedic means dedication to others. This dedication doesn't prevent our nations finest from getting into debt . If you get into financial diffcultys doing these jobs, it can cause a lot of problems at work.

Edited July 24, 2009 by tawnyowl

[loobyloo85]

Hi there

 

All debts, however big or small need to be included in IVAs, therefore they would not have excluded a loan for a car - this was probably a secured loan against the car which the IVA would make allowances for within the budget to save the vehicle from being repossessed. It is normal for the IVA company to propose the surplus amount, but also have to take into account any planned payment changes within the 5-6 yr period. Hence, why your friends payments need to increase now that she is no loinger paying out for her car loan in her expenditure, showing that she will have this extra money available for the creditors. However, the IVAs are reviewed annually, and if their expenses have increased, the company should take this into account, reducing the amount of uplift in payments. Usually any extra income is substituted by the increase in outgoings, but you would generally need to supply some proof. i.e if gas/electric has gone up, send a recent bill in etc. It is best for your friend to speak to their IVA company and review their income and expenditure to see what they can realistically afford. It is in the IVA companies and creditors best interests for you to have a sustainable payment.

[jboy2309]

My IVA started at £200 per months for 19 months then rose to £395 for the remaining term.

 

The reason was as suggested above a hire purchase agreement for a car. The car loan could not be applied to the IVA because no creditor could get more than the 25p per £1 set out in the original IVA. Therefore the car and HP were excluded on the basis the car was necessary for my work and without it I could not earn and therefore pay.

 

IVA payments can certainly go up if you have changes in your outgoings. In my case the car HP concluded so the spare cash went straight to the IVA.

 

For me personally it was the best move i ever made.

[sugg1]

My friend came around today and said that they had found their paper work for the loans they had taken out and had noticed that my friends loan for 8,000 had gone up to 12,000 threw the IVA company ,so she phoned the IVA company and said about it and they said we are only going on the figures that were given by the loan companys.

she had only taken the loan out 6 mts before they went into the IVA ,my friend did not know the extent to which things had gotten at the time as her husband was trying to get it sorted himself but in the end he had to tell her.

so they have added the interest to the outstanding funds they owe ,now i thought that all interest ect was to be frozen and not included, the same with PPI payments.

So the loan companys ect are in the wrong for given false figures then ?

 

Also with the 8,000 loan the bank had included a overdraft of £200 that had been paid off on an account that had already been closed by my friend and the OD had been paid up because they asked her to pay the 50 pence she was over drawn by before closing the account and this was before they went for the IVA.