IP Responsibilities

[pm5]

Ive read quite a few notes on this forum regarding some people struggling to pay their IVA's.
Some letters suggest that some IP's increase peoples payments at the annual anniversary leaving some IVA's difficult for people to pay.
Surely an IP should always make sure that any increase in I & E is taken into account & the debtor can make the IVA payments as well as live comfortably before increasing payments.
I wonder whether some people are spending more than there agreed expenditure or the IP ignores the fact that some things do increase over the years Income as well as expenditure.

[chris.g]

I agree that I&E are very tight in an IVA. We are br but see the allowances that people in IVA's have to live on. A good IP should ensure that people have a decent standard of living but sometimes desperation makes people accept very tight and unrealistic budgets.

[pm5]

You're right chris.g,but it would be in everyones favour that the IVA payments can be met without unnecessary increases to payments unless realistically can afford to do so.

[MelanieGiles]

The most fundamental factor to get right from the outset of an IVA is that the payments are affordable - and the IP has a duty of care to his/her client to ensure that this is feasible. this duty should extend right through the IVA, so far as I am aware, and IPs who do this generally have a higher success rate and return more money to creditors not less!

[pm5]

Thats right Melanie, & i am sure most people would want to pay back as much as they really can which is why the Debtor, Ip & Creditors should always work together to achieve this without the possibility of the IVA failing.