I am coming to the end of our 5th year in an IVA. We have been notified a couple of weeks ago that it will be extended for another 12 months due to not being able to release equity. Our payments are 239 per month.
However, I have gone into work today and been told my contract is changing from 1st April and my pension payments are increasing. This means that I will lose around 250 pounds a month. I don't know what we can do or how we will manage.
Even though you are on an extension, the same rules apply as to the main term, in that you are still free to seek reductions due to changes in circumstances (whether they will be agreed is between you, your IP and creditors, of course)
Run it by your IP. Best of luck.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
An immediate review of your income and expenditure is required to enable a conversation regarding the potential of accepting payment to date...you have come such a long way neither your IP or your creditors will want to see this fail so pick the phone up and discuss now so come April you know where you stand.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
I am a public sector worker so pension payments will be increased automatically. I will contact my IP and see what they say. I really don't want everything to fail at this stage. Total nightmare.
We are in our extra year too because of not being able to remortgage, and as a public section worker my pension has increased (for the second time) and also my work assisted move allowance has decreased. I spoke to DFD today and explained it all, showed the figures and they are offering to reduce my payments by the amounts I said plus increase our food allowance because I explained how we seemed to be struggling at the end of each month. A bit different to 'everhopeful' in so much as we can still pay something but by payment has decreased by 3/5ths. It does show though that some companies are sympathic to situations out of our control.
I thought pensions were part of expenditure, and the rise being mandatory at least some could be offset at annual review. Our mortgage has switched this month off a fixed rate to a lifetime tracker so that`s another £60 as well. At this rate the creditors will be paying us[:o)]
I don`t suppose the scale of these increases has happened before. Mrs H is in teaching and her increase is bigger than her IVA payment, and our first year is up in March, so we`ll soon find out.
As we know this is a government initiative to ensure that everyone provides for their own pension. The scheme that the company I work for (large international) has raised the lower payment from 3% to 5% inline with legislation. However, there is still an option to opt out at any time with the clause that you will be opted back in automatically after 3 years, when you can opt out again for another 3 years. All pension schemes will have the same or similar options.
That said you should not have to do this as it will affect your future income when you will most need it. Good advice above, first make sure you know and understand the new terms of your pension annuity and discuss all options with your IP.
