IVA Advice please -

[2ltr16valve]

Hi all. 

 

My wife and I are entering Into an IVA, due to my children’s health and this having an impact on my health and ability to work as much we are unable to meet our bills and live. 

 

The creditors meeting was held yesterday and the IVA people have come back to me with some changes which I think are totally unacceptable, my wife and I both have blue badges and receive PIP. We have 5 children, including 18 Month old poorly twins who are often in hospital or at hospital appointments. My wife and I also have regular appointments separately, the reason I am saying this is because one of the changes are in relation to our vehicle which is on finance and more is owed than the vehicle is worth. 

 

I will paste below what we have been sent - 

 

Quote

- The debtors must apply for Carers Allowance and provide evidence of the decision to the supervisor within 16 weeks of the arrangement being approved.  60% of any monies being received as a result of this must be introduced into the Arrangement for the benefit of creditors.

 

- If any instances of co-habitation with the Debtor by any person aged 18 or over occur during the term of this Arrangement and where there is reasonable expectation that Board and Lodging should be paid, the contribution will be added into this Arrangement in full

 

- The debtor must make immediate arrangements for the sale or return of his vehicle, any shortfall may be introduced into the IVA.   The debtor may retain £250 per month to obtain a replacement vehicle with the surplus funds being introduced into the IVA for the benefit of unsecured creditors.

 

- The debtor is to seek alternative car insurance with a view to reducing the currently monthly expenditure.  The debtor is to provide the Supervisor with documentary evidence of his investigations within three months of approval.  Any surplus is to be introduced into the arrangement for the benefit of creditors.

 

- No variation meeting may be called during the first 24 months of the voluntary arrangement which will lower the dividend available to unsecured creditors

 

- Voluntary contributions are to increase to £185 in month 11 when rent arrears end rising as per the original proposal and in accordance with reviews

 

 

 

Now we can’t get careers allowance and if we were to apply again - both being in receipt of pip is likely to trigger assessments on us both again (happened last time we applied for this) 

plus I earn more than £123 per week. 

 

When we were going through the proposal I was assured the vehicle would be protected due to our health status and the need for the vehicle we have. Yet they want me to hand it back, add extra debt into the IVA and find another one for £250 per month - with 5 defaults and a trashed credit record.  ? I have outright refused this so far. 

 

The car insurance one is laughable, who buys car insurance that isn’t the cheapest to meet their needs ! In any case it’s paid now for the year ..... 

 

I can’t agree to no variation meeting for 24 months as I’ve unstable health and ill children, I can’t predict what will happen during that time ! 

 

 

 

Is there a way to approach this to maintain the vehicle etc ?

 

[dx100uk]

I seriously question the need for an IVA for consumer credit debt.

 

why cant you deal with them yourself?

 

can you list your debts please?

 

most of your debts as you say are already defaulted so wont be that long remaining on credit files i bet

 

dx

[2ltr16valve]

The defaults are all recent, there are more historic ones.

There is £6k of hmrc debt also for tax credits overpayments. 

Furniture finance of £4K 

numerous credit cards which all recent (last 2 years or so). 

 

I can’t list everything as I’m working and don’t have the info with me. 

 

Edit- to be honest we haven’t got the strength or time with our health and babies health to deal with them ourself, it would be too much. 

 

[2ltr16valve]

The creditor demanding these changes is refusing to ‘negotiate’ and causing the IVA to be rejected. 

This is now going to force me back onto beneifits as I’ll have to quit work - not enough hours to cover the bills. Can’t find other work - I’ve tried ! 

 

[dx100uk]

probably a good thing then.

 

 

[2ltr16valve]

Just now, dx100uk said:

probably a good thing then.

 

 

How you figure that ?

[dx100uk]

post 2.

 

you can deal with creditors by sending our pro rata letter making a small offer.

 

 

[2ltr16valve]

4 minutes ago, dx100uk said:

post 2.

 

you can deal with creditors by sending our pro rata letter making a small offer.

 

 

 

We have over £2000 outgoing bills per month. I can only just afford the £160 Iva payment monthly ..... I can’t see how offering them a lower payment is going to help 

[dx100uk]

just type no need to hit quote....

 

then you offer <£5 to each one.

they are duty bound to HELP YOU.

 

if they refuse.

you send the 2nd letter that says you are not helping me 

heres £1PCM till I die ..now go away.

its quite simple

then you've not got a stupid IVA around you neck that does you over for another 6yrs on any credit.

 

[2ltr16valve]

But they will still chase us and can take court action .... not a solution to us ? 

 

 

[dx100uk]

no THEY wont..

a dca that buys the debt might..eventually..possibly..

OC's don't do court.

so play them at their own game..they must help you.

that will give breathing space on all debts

then you can re group..

 

TAKE CONTROL its YOUR MONEY

not BE CONTROLLED

as to what you do with it.

 

it really is quite easy once you string things out and break them down

overall to date looking at your threads 

you've done fine.