www.iva.co.uk

i currently hav an IVA and am paying £407 a month. With the cost of living going up I am finding it hardto keep up....what happens if I request to reduce the pyments?

How long have you been in the IVA ? It can be difficult to reduce the payments if you have not been in it that long as some creditors refuse to agree to variations if it is early in the IVa period.

Yo uwould have to talk to your IVA provider, and they would have to call a meeting of the creditors to approve your request for a reduction. You would have to come up with a new budget showing how your living expenses have increased. If 75% by value of the creditors at the meeting agree, then your payments can be reduced.

Is there not some leeway for Ip's to reduce payments by 15% without going to the creditors??

How much of a decrease are you asking for??

In new protocol IVA and even cases before depending on the IP and modifications contributions can be reduced by up to 15% provided the missed payments are made up at the end of the IVA (extending the term).
Speak to your IP I am sure they will advise you of this if it is appropriate and if not then as Philip says you can always look to a variation.

The 15% reduction can only be invoked if you agree to repay the equivalent of the reduction over a further year - thereby extending for up to 72 months. And this is only allowed if the IVA is a Standard Protocol based arrangement or if this provision is specifically referred to in the proposal as agreed by creditors.

Apparently only 20% of all IVAs put forward are protocol compliant, so it is a good idea to ask your IP what their policy is in this regard before anyone embarks on this route.