New job - less money. It looks pretty certain that the company I work for will fold in the next couple of months. I have been offered a good job with excellent prospects elsewhere. But...the salary will be approx 30-40% less than my current salary. Is it possible to renegotiate the IVA payments/term with my provider? It would mean a big reduction in payment to make it work. BTW 18 months into IVA without any problems so far. Thanks
Hi. Yes, it is possible to amend payments .. but a lot will depend upon your IP as well as whether the new disposable income will support a viable IVA.
A drastic reduction could be compensated by extending the term. Modern proposals usually allow for a 15% reduction, at the IP's discretion. Any more than that would have to go back to the creditors for consideration.
Best bet is to have a word with 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
Many thanks to all for your advice. I will talk to the IP, but want to get some info first. Have an IVA in my name and wifes name, paying £1040 per month. Changing job would mean approx £700 less salary per month, so would need to reduce payments by approx that amount. There would however be a strong possibility of decent commission in the new job (not guaranteed of course!)Any chance an IP would reduce payments that drastically? I guess they would have agreed to an IVA on those figures if my salary had been that low at the start.
Surely it would be better to be in employment than not if your present company are going to fold, give your IP a ring Bob, hopefully they can sort something out.
Om shanti, namesté, good luck to all who are embarking on the IVA journey, it isn't always an easy one but the outcome is the best.
IVA COMPLETED August 2012, received Completion certificate 18.4.13.
Good luck but we had a bad experience when asking the same question 3 years ago.
My husband lost his job and we wanted to take a payment break.
Our IP charged £500 for a meeting which consisted of a few faxes from the creditors to agree that we could extend our IVA by 4 months.
After that we then had to extend it again because we were unable to raise the equity we needed.
I am sorry you have so long to go on your journey my advice would be think carefully about what you are going to do and don't trust your IP.
They profit from you so all they are interested in is getting as much money as possible out of you. If you extend your IVA that means more fees for them.
I know other people on here will probably disagree with me but if I didn't own my own house I would have gone bankrupt which would have been less stressful that living in an IVA for the past 6 years.
Hi Bob - do discuss this with your IP to see what can be done as in most people's experiences renegotiations can be applied successfully to allow for changes in circumstances. It depends on what the dividend would have been as to whether they would have accepted the lower amount had that been your initial offer. Your IP is there to represent you and has a duty to put forward whatever you ask them to. Hopefully you will read from most of the posts on here there are some extremely reputable, trustworthy and professional IPs representing hundreds of clients so to be advised not to trust your IP is a dangerous statement. Let us know how you get on. You will know from your time on here here not all IPs are the same.
Lulu27 - sorry to read you feel you cannot trust your own IP and that your expeience was bad but please remember there are many members on here looking for sound and unbiased advice so it might be better to advise them to select carefully when choosing an IP rather than not to trust one.
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
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The reason we are all in this situation is because finance providers lent us more money than we could afford to repay. Although we should not have borrowed the money the problem I found was that I kept being offered loans which made our life easier and the more credit I was offered the more I took.
I know that I am responsible for that and believe me i have spent the last 6 years regretting those decisions.
The point I am trying to make is that Insolvency companies are not there to help you. It is a business all they are interested in is making money. Your IP needs your IVA to succeed so they can get paid their extortoinate fees for sending you a letter once a year.
Tina as you work for an insolvency company you are biased as you earn your wages from the profit on our fees.
I think I can give a less biased view because I have actually experienced it.
Hi lulu27. I am sorry to have to disagree with you, but one bad example of a relationship with an IP should not be applied to all!
I agree that levels of service range from excellent (incidentally, I would put Tina and Mels team in that category) to downright slapdash -- as these variations in service also apply everywhere-- this is why we should research then pick and chose.
The fees are, in my opinion, not extortionate and are, in any case agreed by the creditors who are, technically, paying them anyway by a reduction in the share of repayments they get.
One letter a year ?? My firm correspond with me by letter or email several times a week, on average. I think they earn the fees and do a hell of a lot of work you don't see.
Yes, they are a business -- would you expect them to work for free ....... because the Policeman, or Paramedic who rushes to your aid is paid are they not there to help us, or do they not care ? I think not!
Finally your view is far from less biased because you are tarring all with the same brush and your view is tainted by the bad service you were given.
Apologies for the rant, but ... there y'go.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Hi all, great to get so many responses and good to get opinions on both sides. The only I problem I have with the IP is that they don't really want to get involved until the situation actually happens rather than making inquiries to help me make a decision. Will keep trying and let you know the outcome
hi ,
tend to agree with niobe, our situation changes and our IP has been great,all the constant calls from me they must be sick of hearing my voice but they always answer any concerns our fees are not too high and worth it for the service we get
