www.iva.co.uk

Hi, we have recently been informed that are tax credits have been reduced by about £50 a month, our budget is already extremely tight, is it possible to get this modified in our payment to the Iva, or will we just have to swallow it?

In theory reductions in income should be taken into account just as increases are. In reality, though, IP's often resist these things. Most arrangements give the IP the discretion to reduce payments by up to 15% without having to consult creditors. However, they have to make sure the IVA is still viable and the payment doesn't drop too far.

The payment has to be affordable and as Foggy had said, the IP does have some room for for possible reduction.

Best to contact your IP as they do want you to update them on any changes in circumstances.