www.iva.co.uk

Hi everybody, hope all is going well for everybody?

We are in a joint IVA, and my wife has(had!)a casual job which was calculated at average of £70 pw.

Her job has pretty much come to the end and we will be losing that income. My question is:

1: Does it matter if im just paying the IVA payment?

2: We are currently paying £ 40 more then the original payment, and was thinking about the 15% reduction from the original payment which would go some way of offsetting the loss as well.

Does it have any effect if she cannot pay anything into the payment other than financialy?

Hope that makes sence!!!!

Baldy[:)]

It does not matter who is paying the payment Baldy, so long as one of you is. With the loss of your wife's income I would definately seek a reduction in payments.

Hi Mel. Many thanks for your quick reply.

We do have our yearly review soon, so i will making sure that i get them to look at the new income figures.

We will fall foul of the child benefit loss due to my earnings if it all goes ahead, so will also mention that to them. But they probley will not be able to do anything until such times as when it does change i guess.

Many thanks

Baldy.[:)]

Best of luck with the review, and do let us know how you get on.

From what I have seen on the forum each IP looks at reductions in the IVA payments differently.

I am just going through a possible reduction in monthly payments (less than the 15% rule) and have been told by the IP that if the monthly payments reduce through no fault of my own then they will work out what the reduction is over the rest of the term and add further payments onto the end of the IVA.

They said it would be better if I could just make savings in my I&E so nothing needed to be done.....

Hi Baldy you do not need to wait to your annual review if you need your payment amending now. even though it was you paying the IVa you have still lost some income between you so the hit will come somewhere. Be realistic with what you need to your IP and see what can be done.

First of all many thanks for your replys. I will have a chat with them on Monday to sort things out and will let youknow how it all goes.

Nickjohn: Im not sure if ive understood your post!! Are you saying if you need a reduction which is within the 15% of the original agreed amount you will have to make up the reduction by running it longer?

Is this because of an agreed amount to pay back?

Is your IVA fairly old? ie not IVA protocol?

Im not sure if i would be happy with that set up myself, but then i feel very lucky to have a IVA which has been set up using the current protocol.

But you are right that there really is a huge difference in how eacch IP will look upon things!

Baldy

I think also there is an advantage in your case as you are currently paying back more than the original agreed amount.

Hae a word with your IP and ask them to do a review now due to your change in circumstances.

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by baldy

First of all many thanks for your replys. I will have a chat with them on Monday to sort things out and will let youknow how it all goes.

Nickjohn: Im not sure if ive understood your post!! Are you saying if you need a reduction which is within the 15% of the original agreed amount you will have to make up the reduction by running it longer?

Is this because of an agreed amount to pay back?

Is your IVA fairly old? ie not IVA protocol?

Im not sure if i would be happy with that set up myself, but then i feel very lucky to have a IVA which has been set up using the current protocol.

But you are right that there really is a huge difference in how eacch IP will look upon things!

Baldy

Hi Baldy, In my case the amount I need to reduce by is within the 15% amount but my IP has said to do this I must make up the difference at the end of the term by making extra payments. My IVA is just under 3 years old and is in the IVA protocol 2008. I'm not happy with what they are telling me but am stuck with it.. From other posts on the site people have had to make reductions and thats fine, I get the feeling at times my IP is taking advantage of the situation but there is not a lot I can do about it so I am just counting off the months till I am clear...

Same happened to me, 12 months extra even though it's not mentioned in the paperwork and within the 15%.

I think, and it's only my opinion, it would all depend on how the IVA was going - ie have you paid over and above contributions to date and would the reduction take the dividend under what the creditors agreed to initially.

Of course you can always ask for a variation meeting for creditors to consider a lower dividend if the reduction you require is permanent and it would cause hardship to extend the IVA term.

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by kazzafunk

I think, and it's only my opinion, it would all depend on how the IVA was going - ie have you paid over and above contributions to date and would the reduction take the dividend under what the creditors agreed to initially.

Of course you can always ask for a variation meeting for creditors to consider a lower dividend if the reduction you require is permanent and it would cause hardship to extend the IVA term.

In my case we have been in the IVA for nearly 3 years and have paid the equivalent of 4 years payments so we are not below target for the return to creditors and even when we make adjustments for reduced payments we will pay more than originally anticipated.

Within our original paperwork is says that if a creditors meeting is called then the IP can claim an additional £1k fee so the creditors are not keen on any meetings...

Yeah ours was the same but for our f&f meeting creditors demanded the fee be £300 and IP agreed.

Hi

After reading this post I would be very interested to hear an experts view on this 15% reduction rule.

Even though it doesnt affect me as my payments never had to be reduced below my original monthly payment, I always believed that it was at the IPs discretion whether to allow a reduction of up to 15% without adding on extra payments at the end of the term to compensate the shortfall.

If it was the case that the reduction had to be made up at the end of the original term, would a meeting have to be called to agree to the extension?

Im not giving an opinion on this matter but I am quite interested.

we have just had to ask for a reduction due to new costs of public transport as our eldest is moving up to high school. This was done over the telephone and we dont need to extend the iva at the end as in our paperwork it is wrote in that there is no mimimum dividend. Good luck and let us know how you get on