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Hi All

I've submitted my I & E for my annual review. My salary has increased but so has my outgoings.

My disposable income which I've been paying over to Payplan has been £291 per month.

Now it looks like it will be about £220.

I've included estimated cost increases in fuel and food shopping due to VAT...!

I've sent details to Payplan and they're ringing me tomorrow to chat through it.

Can anyone tell me what happens next?

Thanks

Hi debt attack

If you feel that your outgoings have increased significantly enough to require a reduction in your monthly payments, you will first have to agree this with Payplan. They will look very carefully at your suggestions regarding you cost of living increases.

If they believe that these are justified, they can not simply allow you to reduce your payments. Your IP will have to make a variation proposal to your creditors. Your payments will only be allowed to reduce if this proposal is agreed.

It is worth pointing out that IPs are not normally willing to propose a variation to your IVA unless there is a very good reason. As such, I will be interested to her Payplan's response.

They can probably agree to a 15% reduction with little bother - any higher and it will take a variation meeting of creditors to get your payments lowered.

Melanie, do the 15% reductions in payments need to be added to the end of the IVA term or made up during the remaining term?

Hi mole
We recently had an annual review and, like yours, we felt out disposable income had gone down although we were told the payments would remain the same. We asked for things to be re-reviewed as we felt that some things had been missed and a 15% reduction was agreed in our monthly payment. This did not require a variation meeting and was not added to the term of the IVA. We were advised that if we had to go to a variation meeting then that would result in an extension of the IVA by 12 months and that this was normal practice.
Hope this helps.

Depending upon the terms of the IVA proposals, there should be no need to extend the term past the five year point to catch up the reduced payments.