www.iva.co.uk

what happens if you have to reduce your payments due to loss of earning and the creditors dont agree

Hi, Your ip can reduce them by a certain amount without agreement but after that if the creditors say no you can't.

Gina is absolutely correct but it is rare for creditors to reject areduction if the reasons are explained. You should be fine.

As michael says u should be ok. Good luck

After discussing a similar case where a reduction was mentioned due to increase in living expenses. I was told that IP cannot reduce payments and that basically the creditors would not agree and I could be bankrupted. 'Although they could try' I didnt want to risk my 2 3/4 years of IVA payments. Basically after discussing my situ I was left with no real advise or help. The only option available was to extend the term?

An IP can reduce payments by up to 15% without resorting to the creditors depending upon what it says in your IVA.

If you want anything more than that it will have to go to a variation meeting.

I thought this to be the case. I think this is written in my agreement. I didnt have it to hand at the time. However, my suggestion was almost laughed off and denied. The response was 'we are all in the same boat with higher living expenses' I was then left with a long pause until I thanked her for her time. No real help and to carry on regardless.

If you are struggling then you need to submit a new i&E and ask for a variation.

hi h.10

i just mentioned to my ip last month that i.m struggling for various reasons to keep up the payments and they straight away dropped the amount by £50 a month! i was amazed! it was in my agreement that it could be reduced by that much but i thought i would have to fight to get a reduction.

hope that helps u? sometimes things ar'nt as scary as we think they might b

They didnt really ask me any details of why just that they could not. I explained that I thought they could reduce without the gathering of creditors. There response was no? Basically they said any help, change in circumstances or reduction would result in a creditors meeting. Or extension?? I havent found my company to be very helpful or suggestive. This is a shame as I have heard some helpful outcomes on this forum.

Which company are you with and what does it say in your paperwork.

Hi you can reduce by 15 per ceent then further reduce With a variation meeting if creditors agree. We did both. I would just phone and say I am struggling with payments and I want a new I and e to be submitted with view to a reduction. Don't let them say no. If u can't afford it you can't afford it. Be firm . Hope it works out let us know

In the first twelve months of my IVA I asked about a variation as we were hit with a large increase in council tax. The IP said it was not possible. I have since found out that they have the facility to alter payments by 15% at their discretion.

You do sometimes get the feeling that IP's like to keep the monthly payments as high as possible, especially when they are paid based on the amount realised each month (I realise this may not be the case for all IP's)..

Just started year 4 and agreed a £100 reduction in monthly payments for next 6 months without any hassle.

IPs who say that they will not put their client's need for reduced payments, so long as these are justified, are not exercising their duty of care correctly. Whilst we might have a good idea that creditors will not accept the reduced DI - we recently had to put a variation forward for someone who felt that this disposable income ought to be £400 lower than the maximum CCCS guidelines, which of course was rejected by creditors, it would not have been right for us to refuse to present the offer.

If your reasons are genuine, as Michael says, creditors will rarely refuse the reduced offer.