hi everyone i am new to this site just joined.

[nadakuss]

hi everyone i am new to this site just joined. i have been in my iva for 16 months. my debt was 28k and i first agreed payments of 300 with my Iva comp as they said this was what i could afford based on my income and outgoings. About a week later they said this wasnt enough and asked for 360 and then after the creditors meeting they said the creditors would only agree to 450!! At the time i was willing to agree to anything just to try to get myself straight i felt like i was so in the shit there was nothing i could do. Just after a year of scraping together every penny to cover the payments i began really really struggleing again and when i had my yearly review they put my payments down to 300 as they could clearly see i was unable to cover the repayments and pay my bills which was good, however i was phoned today and told that what i thought was a permanent payment reduction was actually a payment break and my payments would go back up to 450!! i said i couldnt afford it they looked at the numbers and agreed that i couldnt afford it then they said that they might extend the iva for more than 5yrs to keep my payments at 300 which i really dont want. i thought 5 yrs was max?? is there anything i can do apart from bankruptsy or are they totally in control what they say goes. i am really hating my iva right now!! my income is 22k a yr anyone have any idea on what i should be paying i know i havent said my monthly outgoings but 300 a month seemed fair i didnt have loads of spare cash but i could affort to eat. any help much appreciated thanks.

[David Mond]

This is appalling - who did you do your IVA with?

Your IP should have ascertained right at the beginning what your disposable income was after taking into account all of your monthly expenditure and agreeing with you what could be spent having regard to CCCS guigelines or the Common Financial Statement produced by Money Advice Trust. This would have shown your DI which to me should have been around the £300 you indicate you can manage with (subject to the figures being correct and allowable).

I would insist on your IP explaining what does he mean that you had a short payment reduction as distinct from a proper reduction vai a review. Insist on a meeting of creditors for a variation to put your monthly contribution in line as to what is affordable! Let us know how you get on.

[nadakuss]

Thank you very much for your response. What are your views about them lowering my payment but extending the iva? Does this depend on what the creditors decide at the new meeting?? They're also telling me that the creditors may not agree to the lower payment so would this mean the iva would fail?? I would have thought the creditors would rather have what i can afford rather then me go bankrupt as then they get nothing dont they?? I wish id looked into this a lot more but at the time i was just desperate and just dreaded the thought of going bankrupt!

[David Mond]

They should discuss all options with you and based on your Di come up with sensible suggestions which are achievable based on affordability. Creditos will accept a fair and reasoned variation based on proper facts and figures in my experience.

[plasticdaft]

Shocking behaviour,which company is it you are with?? IVA's are often extended to ensure a minimum dividend/return is achieved.

Do you have assets of a job that would be affected by BR?? Its not as bad as you think and your IVA company should have explained all options to you before you signed anything.