On average how long does it take to get a variation of you IVA?
Due to unforeseen circumstances over 3 years ago I needed to cancel my car finance, which would affect contributions year 4 onwards (IP FULLY aware at the time). Its taken my IP this long to get the documentation to me and have now negated on a verbal agreement to extend 3 months, to now stating 7 months. Can a verbal agreement be binding or do the rules not apply to IP`s and they simply do as they please?
Thanks for reading and look forward to reading your responses
No-one can force an IP to change their mind on a decision they make.
Is the 7 month extension linked to any arrears?
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
Yes linked to arrears
We verbally agreed if I made increased payments to X amount they would require a 3 month extension which I agreed. How can they miscalculate and now state 7 months?
The IP does not have a huge amount od discretion and would normally have to call a variation meeting if the changes are anyway material. If there were minor arrears this can be addressed with a simple extension but if the overall contributions fell the IP may have had to ask creditors for direction.
You need to speak with the IP and get them to clarify exactly what happened and why.
Michael, I have asked them, still seeking clarification.
I was more concerned on the verbal agreement being negated on, surely they must stick to their word? Or does it mean nothing in the grand scheme of things and ultimately if they dont need to stick to their word an IP is law of its own and can chop and change as they see fit.
Can wait to see the back of this IVA, its been 1 gigantic mess from start to (whenever) it finishes and the IP in question, should be ashamed of its actions to date.
Last edited by deanwinchester on Tue Jul 14, 2015 10:35 am, edited 1 time in total.
A verbal agreement is worth nothing, unless it can be proven ( recorded conversation). In any event, the situation in an IVA is forever fluid and can change all the time regarding dividends and arrears etc. Basically, here, you are at the mercy of your IP.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
It is possible that there was agreement but creditors subsequently overruled this. I am guessing as it would be poor to make an agreement and then change it later on.
It has not gone to creditors yet, the letter has been drafted awaiting my signature. Hence why i am questioning it now. I guess note to self: get everything in writing.
Perhaps the original three was an estimate or someone not fully qualified to agree it. The variation will be based on all the facts and probably is what your IP knows to offer. It is a pity but hopefully the variation is approved and the extra four months goes by quickly.
Last edited by Michael Peoples on Tue Jul 14, 2015 1:22 pm, edited 1 time in total.
