www.iva.co.uk

Hi
Could someone please help me?
I am in an IVA and original proposal was
£497 for 5 years NR said they would only approve the
iva if we paid £552 over 6 years so we agreed this.
Since then our payments have been £870 for a long time now but recently some bills increased and we lost some
income so I have asked for my payments to be reduced to
£752 what I can afford.
I have now been told that if they reduce the payments we may have to extend to 7 years??? I thought the whole point of this was to be debt free in an agreed amount of time and I notice when the payments increased by £318 they dont reduce the term tho!
I am just wondering if maybe a DMP my have suited us better as I have a friend in one and she has much better allowances than we have.
Is this something creditors can do keep increasing the term even though they will still be getting £200 more per month than originally agreed?
Thanks

This does,nt seem fair Johns what firm are you with.As long as you meet the original proposed dividend then 6 years should suffice.

thanks for replying i am with debt free direct
i spoke to a nice lady who said she will try
and get the payments reduced without an extension
but i have to be prepared for one.
The original total repayment would have been
£39744 and with the reduced payments we would still pay
more the total would be £49000.
I just feel there is no end in sight at the moment

thanks

Hi John - it should not be the term keeps on getting extended due to a justifiable change in circumstances each time however only your own IP can confirm exactly how your IVa was set up. The term won't reduce as unless it was 100p/£ you will still have debt to repay. sounds like you may need an income and expenditure review with your IP to look at your allowances. An IVa should not have less allowances than a DMP, it is generally down to the company you are dealing with and how they have set your budget. Make sure you are not overstretching yourself on unreliastic expenditure limits.

If your payments went up to £870 you must have had an increase in the income or a reduction in an expense to give such a high monthly payment compared to the proposal.

Go back to your IP to discuss your concerns with them and see whether you can have your payment reduced but the term remain the same.

regards,

I'll give Declan a heads up on this one, he may be able to help.

Hi Johns
I’m on annual leave but if you email me I’ll forward it on to the relevant people and help get this sorted.

Thanks

Hi all
I have done my Income and Expenditure and thats what has started all of this the main increases in my bills was insurance and I do have someone dealing with it but she said we have to wait a few weeks and I do understand that if we could afford it we would have to pay 100% in the pound but I am trying so hard to stick to this and we have 2 full time incomes but nearly the whole of one is paying the iva which i dont mind when we were getting closer but it keeps getting longer we have had a couple of payment breaks so its going to be 6 and half years at the moment thats fair enough because we did have the payment breaks but 7 and half years we will be getting too old to have a family by then.

I see no need for an extension at all! Moving of goalposts is unfair and unjust!

Paul

Hopefully Declan can progress this.

Great that Declan is on the case even though he is on annual leave - Declan - enjoy your break when you finally log off the computer!

Declan
Thanks for your offer of help I have just sent an
email to you now.

Thanks again

I do hope that Declan can help you on this because it does seem unfair to me x

me too i think it is unfair we are currently going
through ivf treatment which has taken years and we are trying to look to the future and this has just put a spanner in the works a bit so hopefully someone can sort it for us and thanks everyone for your replies.

Fingers crossed Johns.