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Find financial and money saving discussions including debt and pension chat on our Money forum.

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Find financial and money saving discussions including debt and pension chat on our Money forum.

Money matters

anyone had an IVA?

42 replies

rightmess · 09/09/2005 13:48

just wondering, cos we've got into a right mess with our money (DH and I) we're always in a non exsistant o/d, have £10 bank charges this month, we earn not bad wages and are going thru an IVA, however they're wanting £450 per month and we just can't manage it, we can only manage £300, they're wanting us to re look at our expenses but everyhting's on there....

what more can we do? help!!!!!

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rightmess · 09/09/2005 13:48

(changed name for this)

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pindy · 09/09/2005 13:50

sorry - what's an IVA?

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spacedonkey · 09/09/2005 13:50

is it possible to renegotiate the IVA?

can the IVA company help you look at your expenses, or, if not, could the CAB help?

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rightmess · 09/09/2005 13:51

thta's what we're trying to do - but all they keep saying is well u must be able to afford it - the thing is thou we bloody weel can't i'm stressing about everything on the verge of tears - it's our fault, but I feel like i'm sinking

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rightmess · 09/09/2005 13:52

pindy - involentry agreement (not quite bankrupcy it's the alternative)

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spacedonkey · 09/09/2005 13:53

I suppose there are a couple of options: you could go for bankruptcy, or somehow reduce your expenditure so you can cover the IVA payment. If there's absolutely no way at all to reduce your other expenses, bankruptcy might be the way to go?

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pindy · 09/09/2005 13:54

thanks - sorry to hear your predicament, no helpful advice sorry.

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rightmess · 09/09/2005 13:56

but we can't go down that route as then DH would loose his job, we'd loose our house and everything. we just can't seem to get ahead - it wouldn't be so bad if we actually did get ahead for a month.

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spacedonkey · 09/09/2005 13:59

Can you go to a different IVA company?

I think first port of call should be CAB or the consumer credit advice line - there must be something you can do. The IVA co you're with sound really unhelpful

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swiperfox · 09/09/2005 13:59

Can you ask them to send you a means form or have they already done that?
Sounds a bit bad that they won't renegotiate - i thought the point of them was to help you through debt.

450 a month is a lot for them to ask to get you out of debt - I'd keep on and on and on at them and speak to a manager

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spacedonkey · 09/09/2005 14:00

Have your circumstances changed for the worse since the IVA was calculated?

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rightmess · 09/09/2005 14:01

no we're currently negotiating it, and they say we can afford it - but there's no way we can. I don't really want to swop as it's taken 4 months to get this far.

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spacedonkey · 09/09/2005 14:02

Surely part of their role is to help you, not dogmatically state that you can afford it without explanation!

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spacedonkey · 09/09/2005 14:04

Sorry, meant to add that if you're still in the negotiation stage, there is still the chance to reduce it. You need to sit down with the IVA people and show them that you can't afford it (backed up by evidence of expenses), or make them prove to you that you can

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rightmess · 09/09/2005 14:07

that's just it SD - on paper they can prove we can but in reality we can't we're always a month behind on the bills utlity one as it is

swopping to a diff supplier to hopefuly bring those down.

we jsut can't prove we can't, but know we can't as we're currently £100 o/d with no o/d.

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spacedonkey · 09/09/2005 14:09

do you know what the money that should have gone on the utility bills was spent on? I would think you need to analyse every penny you have spent - that would be the evidence you need

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sweetheart · 09/09/2005 14:12

I went through this with my sister about a year ago and seem to remember that IVA's are not generally that good.

The trouble with an IVA is that your creditors have to agree to the reduced payments you are proposing. If they say no you have no legal rights and there is nothing you can do. It may be, in this case, that your creditors have refussed the reduced payment.

Have you written to them and asked them to freeze the interest on your debts - this is something you can do yourself and if you explain that you are looking at the option of bankrupcy this is something most compnaies will do.

Also with an IVA I think you face a custodial sentance if you breech the terms of the agreement so you need to make sure you can afford the repayments.

My sister found in the end it was far better to go bankrupt. She thought she would loose her job too as she works for a company that is regulated by teh Financial Service Authority but she managed to speak to her managers about it and keep her job.

Perhaps your dh could do the same??

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rightmess · 09/09/2005 14:25

he's in the forces so it's not allowed. i'm so depressed by it all, they know next year our finances will change as i'm PG and baby's due then so everyhting will change - it's such a mess I don't know where to turn for the best really. I know we have to budget but everytime we do something crops up thhat's needed - for example the car needed work doing (new exhaust system) then the it's somehting else every month there's always something.

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rightmess · 09/09/2005 14:26

we've not written to the comapnies no, tbh we loked at iva as we were after paying one payment to soomeone and having them deal with all the paper work - and headache. so far it's not working.

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spacedonkey · 09/09/2005 14:27

you do have my sympathy rightmess, it is SO stressful

do be very careful before finalising this IVA, especially if it's true that you could go to prison if you default on it. Bankruptcy would certainly be a better option than prison!

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rightmess · 09/09/2005 14:31

well yes exactly, I just can't work things out it's starting to really get to me now.

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spacedonkey · 09/09/2005 14:32

i know, but do remember that there is help out there. Ring the CCCS or go to CAB as soon as possible.

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sweetheart · 09/09/2005 14:33

right mess - to be honest, the service you are getting is nothing that you can't do yourself really - and your paying extra for it.

It is easier to have somone else deal with it - especially if you won't be dicaplined enough to stick to a budget - but you could do it yourselves.

You really do need to write to the companies and explain the situation - I would be surprised if they refused to freeze the interest - after all if you were to go bankrupt (and they don't need to know it's not an option) they will only get back a tiny fraction of what they are owed. It is in their best interests to help you pay back the debt.

You should also work out a budget and stick to it. I find it helps to have all bills on a d/d and have a bank account just for bills. That way you can pay the money you need into that account at the beginning of each month and not worry about it. Also try and give yourself money weekly - that way if you run out it's only a few days until you can have your next lot rather than facing half a month with no pennies.

Dh and I were in so much debt a few years ago. It's been a really hard slog and we've struggled through weeks where we've had spagetti on toast every night for dinner. But we're out of it now - and we learnt our lesson the hard way - I'd never allow us to go back there now!!!

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spacedonkey · 09/09/2005 14:36

good advice there from sweetheart

I am in a similar situation at the moment. I'm probably going to go bankrupt, even though several of my debtors have halved the amount i owe them as a settlement agreement. Perhaps you could negotiate a settlement agreement with your debtors?

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rightmess · 09/09/2005 14:42

what sort of a letter did u do SD? is there a standard one?

We won't end up in this mess again I can asuure u of that, we do always have food etc and most the bills are paid, but there's never anything left. Going to get on teh email to DH now and see his views, am thinking of downloading the moneysaving budget planner - does that help?

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