after 1st IVA annual review, I have received a 15% reduction off my IVA payment every month due to the living expense go up, I was told by IP the 15% is the maximum for reductions.
But I don’t understand the cost of living is going up every year, circumstances surely changes for the worse if no pay-rise,
can I get another 15% reduction off my payment in every annual review due to the increase of living expense. (I mean, get 15% off payment every year)
thank you
If only, Michael. Any further reductions will need to be put to the creditors for their approval. I am afraid we are all in a bad place economically at the moment. Everything is going up except pay !!!
But, think about it -- a 15% reduction every year would mean at the end you would be paying about 65% less (yes ... 15 x 5 is 75, but this would be a compounded reduction. So the 15% would be on a lesser sum each time. I am sure there is a formula for ir, but I am being lazy!).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
If any reduction in payments mean there is a substantial shortfall in your proposed dividend to creditors,then payments can be tagged on at the end of your iva to make up the shortfall,but like Foggy said this would have to be agreed by creditors by the way of a variation meeting.
Anything over 15% would have to be sanctioned by the creditors and it would be unlikely unless you had a drastic cut in wages or something like that.
I'm afraid you'll have to bite the bullet and accept that we're all in the same boat and will have to continue on as best we can and cut corners somewhere.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I must admit, Michael, you are fortunate to have been granted a 15% reduction like that, as a reduction seems to be a rare animal these days, even though expenditure is always on the up . Well Done. Let's hope your IP continues to be so helpful ( within his terms of reference).
(Edited for spelling!)
Last edited by Foggy on Sat Oct 01, 2011 7:00 pm, edited 1 time in total.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I'm just thankful that my payments have remained the same at every review. They are manageable at the moment.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I had a 15% reduction when hubby had a pay cut, still struggling with feeding just three of us comfortably but we're cutting back as much as I can and I'm slowly becoming domesticated x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
I think you are doing brilliantly Lesley - you've overcome so many difficulties throughout your IVA - hope everything else runs smoothly.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I'll send you a bouquet when you finish as you really do deserve it! You've had so many problems and managed to overcome them.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Exactly! The right IP is the key to everything I think. I've had no problems with mine so far but do know that I'd have picked a different one if I'd found this forum beforehand.
I think you have done really well so far. Hope the rest of the time continues smoothly.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I had a 15% reduction half way through my IVA. It was due to temporary change in circumstancies, then I resumed the full amount a few months later. The 15% is to be tagged on the end. Over 6 months its probably about one extra payment, but if you kept on for the long term on the reduction, it would add up and make the IVA longer. I was always tempted to carry on with the 15% reduction, but looking back, glad I never, even through some tough times. I have 11 payments left on my IVA, had I carried on with the 15% reduction I would have 15 or 16 payments left. But if you need it you need it. Personally I cant get out of debt one month too early. The end does seem a long way off after one year but it does pass.
This is an old post, Radish, but, to carry on the theme ...
I had a 15% reduction, as per my proposal, taking me down to 15% below my original ( month one) payment. All future increases etc, as I understand it, are now based on the new payment. I cannot have any further reductions without asking the creditors. I do not have to repay the reduction and no extensions will be applied.
I guess it depends upon the wording of your proposal as to what discretion the IP has and, of course, how helpful your IP is, as this reduction is discretionary.
I might add that in year one I made considerable overpayments so, at the end of the IVA, even with this reduction, the creditors are still getting more than the estimated dividend. As well as this, the introduction of over £8k PPI helped the cause.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
