Page 1 of IVA Question

Am in an IVA, still got like 4 years to run or something like that (partner is in charge of all that nonsense).

Anyway going to be laid off from work at some point in next 18 months as we`re being merged with another Building Society.

Question is this - Can the IVA company lay claim to all or part of the money?

Obviously ill need to live till i get a new job but was thinking of clearing overdraft and paying Argos Card (not in the IVA) so would i be able to do this without them getting all het up about it.

Was also thinking about taking the kids to Disneyland (Paris) as i might not ever get another chance. Theyve said that having a holiday is a reasonable request and they allow for it when considering the monthly payment due, would they frown upon something like Disneyland though.

Thought id ask here rather than asking them and flagging the situation up for them.



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http://www.ipetitions.com/petition/weneedthewizardnow

Not a direct answer but...

http://www.my-iva-adviser.co.uk/paying-off-an-iva

Seems to suggest that you should speak with your insolvency practitioner.
Also suggests that maybe your redundancy "windfall" could be used to pay off the IVA?? (obvoulsy I assume this would depend on your debts and the size of your payoff)

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This item was edited on Tuesday, 8th June 2010, 12:46

Try your local CAB office they might be able to help.

You must inform the IVA people about your work situation. They will then re look at your finances and get you to pay what is "reasonable" within your budget. They are not like the CSA who demand what you don`t have. They can only take disposable income once everything else has been paid and taken.

They basically go back to your creditors and ask for a reduced payment until such time you can contribute more into the IVA fund.If you do get a pay off from the job, the IVA will expect most,if not all to be contributed towards the fund.

Regarding a Holiday, they may look at that as a luxury, but if you have a monthly amount set aside for holidays on your income/expenditure sheet, then you may be ok.

Note: If you do have reduced payments, then they may request an extension of 12 months onto the 5 year term, so you will be paying 72 months, not 60.
If you are able to remortage your house after the 4th year (as per the usual IVA terms)and place any equity available into the fund, this could prevent the 6th year.

Good luck with it all

Redundancy £ is supposed to be money for you to survive on for a period of time, in lieu of notice having to be served, with that in mind with no jobseekers benefits coming in as having been given said survival money & no employment, they may not be able to touch any or all of it until you get another job.

Again CAB best to advise.



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It is best to speak to CAB, or your IVA supervisor. This is from the debt free website:

Quote:
Any redundancy lump sum is a windfall and the terms of your IVA proposal will spell out how such a windfall is to be treated. You will normally be required to contribute the full amount of any windfall into your IVA. However, given that this is a redundancy payment, your supervisor should be able to convene a Meeting of Creditors to determine how much of it (if any) you will be required to pay into the IVA. Your supervisor will quickly seek to determine the extent of the changes in your circumstances, particularly your loss of income


Quote:
In a nutshell then, a redundancy lump sum is a windfall and you will not be allowed to keep any part of it without the express permission of your creditors. However, inform your supervisor of your new circumstances and it may be that it will lead to a happy ending for you as well as for your creditors.

OK things have gone a little south in the iva stakes and i need some advice.

Partner has moved to brum with kids and as already discussed im still at work in stroud waiting to get laid off. Shes out of work and on benefits so im the only person earning an income.
Because of this weve been making token payments to the iva, she used to pay this when she worked but now i had to take it on on top of all other bills.

Anyway its just been reviewed and they agree that she has no money to increase payments but theyre asking me to give them an extra £200 a month, money that i really dont have. I understand they have certain criteria for whats allowed etc and based on their calculations i have £200 a month spare but with a 4 year old about to start school and who is taking dance lessons etc and the fact im feeding myself at home and buying stuff for them, food clotehs etc, when i visit on the weekends i literally spend every penny i earn every month.

So the question is what can i do about this? We were originally in debt management and then along came the iva and so that was the route we took, now as per above thas looking like something we cant afford. Obviously bankruptcy is an option but is my understanding right that they would look at the supposed spare cash and probably want it anyway? Theyd also take assets such as my dvds, the car etc?? Or would the car be stated as a necessity for getting children around etc? Bankruptcy would also effect work, currently in financial industry, could they push me out for declaring bankruptcy? not looking to stay in that industry anyway but how would future employment work out?
I realise citizens advice is the way to go with this but thought that you guys are always really helpful so id get an idea of where i stand here. Could going back into debt managment reduce the payments but obviously make the term ridiculously long?


It matters not what happens in life, ive met the Mighty Bruce and my life is complete.

http://www.ipetitions.com/petition/weneedthewizardnow

I reckon you have a good basis / argument for keeping the car as its your means of transport for work & getting to see the kids. I wouldn`t think they`ll be interested in the DVDs either - what they gonna get for them £1 a title! They`ll be after stuff that holds a value that they can sell on - TV / Computer etc.



IN MADNESS YOU DWELL

I believe that once you are in an IVA, you can not leave it and return to Debt management. You have taken out a County Court agreeded repayment scheme, so if it was to be broken, you will effectively be declared bankrupt, which is the last thing you want.
Taking all your left over money seems harsh, as they do need to leave you with funds to survive. Kids dancing classes will be seen as a luxury, and i believe they will ask for them to be stopped if you are paying for them.

I am pretty clued up on this kind of stuff, but your situation is a tad complicated, being in limbo with work and the wife living elsewhere. Best advice i can give is talk to CAB, and get them to look at your situation. They will be best at letting you know your options.

Good luck!