Is this correct or legal?

[carmelo]

I am in IVA, my understanding was that the payments would be fixed for the five years duration. But after one I was asked to increase the payments. Is this correct or legal?

[GetStraight]

Hi Carmelo, u working nights also? I have also made just 1 payment into my IVA. I'm no expert and you will get an expert reply on this forum soon. But as far as I understand it, your payments have been set (as per your income & expenditure statement given to your IP)until the 1st Annual Review (in 11 months time now in your case). The payments can only be altered (as far as I'm aware) before your annual review, if you've informed your IP that you've had a windfall payment or change of circumstances since you started up the IVA. If nothing has changed, they should not be trying to alter your payments.

[GetStraight]

Sorry, re-read your question. I thought you meant 1 month not 1 year. Yes payments can change at the annual review if your I & E has changed. Thanks

[MelanieGiles]

Surely it was explained to you by your IP that you would be subject to regular annual reviews and that if your situation has improved your contributions may increase? It is entirely correct for this to happen, as I imagine that you are asking your creditors to write off some of their debt, and of course they will want to benefit from any improvement in your circumstances over the 5 year period.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

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http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp