Variation meetings

[MillyBo]

Hi
Can you please advise me how Variation meetings work?

Firstly, is it true they can cost approximately £1,000 and if so how is this paid for?

Secondly, if your IP takes your revised (reduced) offer to a Variation meeting and they say NO, is that the end of it or if you want to make further changes to the revised offer do they cost you the same amount again each time, or can it all be included as one? Basically, if I should get offered one of the jobs I have previously said about, our monthly contributions would need to go from £1,050 to £650. I think this is unlikely to be accepted even though they would get more than if we were to go br - but after reading other posts that seems to mean nothing. If this was rejected, we would like to possibly consider asking to pay the £650 for a further year (6 yrs in total) OR if I was successful in getting the promotion I could push to do x4 10 hr shifts so I can do 2-4 overtime ****s each month to try and equal it out - though this is obviously in no way guaranteed. Would the IP just decide which seems to be the best option and take only one option to the variation meeting or could all the options be discussed at the same meeting?

Also, if we do get any inheritance, I know they would get it all and if isn't enough to make a f+f offer it would just get swamped up in the debt that has been wiped off, but even if it is only say £5,000 - could this go in our favour as a 'sweetner' for creditors to accept the reduction?
Thanks, Milly

[MelanieGiles]

If you ask your IP to call a variation meeting, this will involve him/her in doing additional work and it is fair that they be paid for this - although I am increasing seeing that creditors are reluctant to recognise this and expect us to do the work for nothing! The terms of your IVA proposal are likely to confirm that amount that would be charged for putting forward a variation, and who is responsible for paying the fee - be it the creditors or yourself.

If your variation is initially refused, you can negotiate to put forward a more favourable offer - but my advice is get it right the first time and there should be nothing to worry about. Your variation meeting should not, however, be put forward until you are certain as to the position at work.

Your windfall would not serve as a sweetener, as creditors are entitled to this in any case.

Hope this helps.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk