My IVA review has been calculated incorrectly???

[kopi]

When I had my first IVA review done recently I felt it was worked out incorrectly. My IVA proposal said that I would receive 50% of any additional money I had received. This did appear to be how they had calculated my review. I wrote to them complaining and asking for clarification and received the reply below:

''I also wish to clear up the confusion with regards to section 2.4 of your original proposal. It is your Supervisors responsibility to carry out an income and expenditure review every twelve months under the terms of your Arrangement. This is to confirm that you are paying the correct level of contribution. A modification was put forward by your creditors on the day of your meeting that states:

· The supervisor is to review the debtors income / expenditure annually with a view to increasing payments into the arrangement.

Modifications override the original proposal; therefore, all surplus funds from any pay increases must be made available for the benefit of creditors.
Please note that creditors are entitled to 100% return plus statutory interest for their debts. At the moment you are only paying your creditors back 26%. Your creditors expect you to pay as much into your Arrangement as possible at the current time as it is possible that you may need to reduce your contributions in the future due to unforeseen circumstances.''

I have to say I find this response totally unacceptable. The statement that the supervisor will review my income / expenditure annually is a general statement and does not state that I now have to pay 100% of additional monies as compared to the 50% in the original proposal.
Any advise please as I will not accept that this modification now means I have to pay 100% of any additional monies received. Don't know If I have any legal right to appeal if need be? One thing I do know is that I will not accept my debt management companies interpretation of this statement.
Thanks,
Nick.

[MelanieGiles]

The modification does override the proposal, but it does not say that you have to pay over all of your additional income! So I agree with you - but you will need to come to a sensible arrangement with your IP which enables him to justify his actions to the creditors and you to want to continue with the arrangement.

Ultimately you can go to Court to seek directions if you do not agree your IP's decision, but that can be very expensive and these things are usually resolved by sensible dialogue. Which firm are you using?

[kopi]

Debt Free Direct