www.iva.co.uk

IVA was excepted on Sat which is brill. Had a email from work today to say they are changing terms and conditions and removing the unsocial enhancement which will mean I will lose about £80 a month they also said as a good will payment they will be paying us a one off payment to cover the lose of the first year which we will get end of June. Will I need to explain this to my IP and will they take 50% even tho it's what I would get over the year if it wasn't been stopped?? This is typical when IVA just been sorted.

I'd contact your provider it depends on the clauses on your iva. Ours have a windfall clause where we get to keep 50%, I believe some you have to give it all over though.

I'd think the right/equitable thing to do is propose a variation something along the lines of

Monthly payment into IVA drops by £80 per month
Whole of goodwill payment goes into IVA (unless there is a pressing need for the money for other things)

If I were a creditor I wouldn't be keen on taking the loss but not getting all the compensation on offer for the loss

Obviously talk to your IP, if they say you can keep the money and reduce the repayments with a problem then happy days


Martin

Was the £80 included in your IVA calculation? If so I think you should contact your IVA IP asap to let them know. It could be that creditors extend by a year or they may accept a lower dividend.

What was your expected dividend over the IVA term prior to this?

I would definitely talk to your IP as they will be best placed to give case specific advice.

Well done on the acceptance by the way.

They will not take any of this money Bex, because you will need it to fund your ongoing payments, but I do wonder what the effect on your IVA will be in the following year. How much are you IVA payments currently set at?

Hi and thanks for all your advice. Mel I currently pay £136 a month towards my IVA.

So when you get the reduction, your disposable income will only be £56. How will you fund the difference - and is your employer going to make this up in any other way?

I will have to look at increasing my hours early next year when my youngest starts nursery as she will get the 15 hours a week free to compensate the lose.

At least you have plenty of time to work up to that. Life is full of wonderful challenges, isn't it!

You have a plan Bex that is good and hope it works out for you as I'm sure it will. All the best and hope you're feeling reassured.

Thanks guys and yes always have to have a plan nothing ever goes smoothly!![:I]