Hi I have recently undertaken an IVA. My IVA was agreed but with modifications. There were two main modifications. If I aplied for and got a council tax rebate, I would have to pay 75% of this into the IVA. Also I had to chase other benefits like DLA and if I receive such benefits, once again I would have to pay 75% of such benefits. I was informed originally by the company arranging my IVA that there was a 50% rule for extra monies coming into the household. I am already repaying 51p in the pound which quite honestly is making life difficult. Is there any way I can challenge what I see as unfair modifications? Any advice wiill be much appreciated.
I would think that if you accepted these modifications at the time then you will have to abide by them.
Did you not question them when the IVA was accepted?
One of the experts will hopefully be along shortly.
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
DLA payments are made for specific needs that you (or the person you are caring for require). Nothing of that should be paid across to creditors but it may mean that your disposable income increases because things you are paying for now would be covered by the DLA payments thus increasing your payments.
Taxpayers would be highly annoyed to find out benefits such as DLA were being scooped up by creditors rather than be used for the reason you were receiving them.
Last Payment - November 2011 - Completion Certificate received 2 weeks after last payment, Removed from Insolvency Register within 4 weeks after last payment.
Tom-with the cost of living spiralling those modifications seem really high,the 75% for dla is shocking.You are returning an excellent dividend so I cant understand why the creditors have been so harsh.
If your expenditure increases as rapidly as ours has in the past few months I can see any extra income you receive being swallowed up in allowances.
As for the DLA, if you receive the mobility component i would suggest you go out and get yourself a brand new car,thats what this money is for,to help with mobility needs. As for the care component,this should be available for you to arrange help around the home and personal care,so thats what you should consider spending it on.
Dont let the creditors get their grubby hands on it,i felt sick with disgust when i initially read your post.
Who asked for this modification????
full and final accepted January 2015
iva agreed; August 2010
iva would have completed; August 2017
extra year thank's to NRAM
I think the mods are bad but I also think that if he has agreed to them he will either have to ask for a variation meeting or abide by them.
I am hoping gthat one of the experts will be along with some advice soon.
Sorry to be nosy, but for what reason would you be applying for DLA?
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
If they have been agreed they will be in the Chairman's Report. Personally I feel these mods are wholly unfair, however, as Kallis says, if they were agreed to at the time then they will be binding.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Whether the modifications are fair is largely academic. An IVA is an agreement between a debtor and their creditors...once parties agree and the iva comes into being it must be abided by. Changing our minds once the agreement is up and running undermines the whole process...just imagine if the tables were turned!
The point is that the IP should never had allowed modifications like that.
We now have the modifications that:
Reclaim PPI, every if you say you were not mis-sold it.
Try for benefits/DLA/council tax rebates and if you get them we'll have the money.
For me this is a dangerous slope that is being accepted by an IP because when the story of Mrs X who received XXX was forced to pay it to an IVA rather than care for her son/daughter and the taxpayer basically paided the banks appears in the papers and on telly it isn't going to go down well as everyone in debt receiving any benefit will be viewed as cheating the system and having tax payers pay off their debts.
Last edited by herbekj on Fri Jun 03, 2011 5:09 pm, edited 1 time in total.
Last Payment - November 2011 - Completion Certificate received 2 weeks after last payment, Removed from Insolvency Register within 4 weeks after last payment.
There is also the possibility, in these penny pinching times, that benefits might be withdrawn if they are not being used for the the purpose for which they were granted. Thin end of the wedge stuff.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
But the IP doesn't agree anything! The IP is the intermediary and can try to influence but only the creditors and the debtor make decisions. If you believe a modification is detrimental and could lead to further hardship then you can refuse and seek an alternative debt solution or try to negotiate. Re the dla in this instance...the associated costs may already be included in the I&E. Therefore by claiming dla it removes this expenditure from other income and leaves more for the creditors. it isn't necessarily about paying dla to creditors.
The initial post states that's that you should claim DLA and we will have 75% of that claim if successful.
That clearly inidcates the creditors are trying to claim 75% of anything the debtor recieves regardless of what the DLA payment is actually for.
You may get say £150 in DLA but that may only replace £50 of your spend because in debt you weren't spending the money you should (in this case £100).
Yes, you now have £50 more to put into the IVA as this is correctly based on your I&E but to state 75% of anything you get goes in regardless is wrong.
Your IP agrees your I&E, your IP agrees creditor claims and is there to control/moderate everything regarding your IVA to the best interests of both sides to ensure a successful conclusion.
Last edited by herbekj on Fri Jun 03, 2011 6:50 pm, edited 1 time in total.
Last Payment - November 2011 - Completion Certificate received 2 weeks after last payment, Removed from Insolvency Register within 4 weeks after last payment.
Was this modification no questioned at the time? What happens if you don't claim? I think you will need modifications if you want to pay less than the 75% agreed. This sounds terrible to me!!
The road is 72months long starting September 2010.
