www.iva.co.uk

I've been on an IVA for the past 2 years and my arrangement is currently up for annual review.

In the last year I increased my payments from £400 to £500 per month, and since this increase I have received another payrise giving me an extra £260 per month.

Despite the budget the IVA allows me I am still finding things tight. My travel, food bills and all utilities have increased fairly considerably and to top it all off I was forced to move (landlord selling the flat I rent). I was on a good deal rent-wise there but had to move to a new place costing me an extra £130 per month (this is London after all!). Plus the closing utilities bills I have received from my old flat are quite substantial and this is something the IVA budget does not account for. Should I mention this to my IP?

So I've worked out I cannot afford to increase my payments any more than about £20-30 per month, but my IVA states that I have to give 50% of my payrise to them. I am so worried it might fail because I can't give that 50%. However I can continue to make the payments I currently make plus a little extra. Would they fail my plan even if I can continue to make payments on time each month?

Has anyone been in a similar situation? Can anyone provide some advice on how to approach this?

Many thanks in advance.

I would think that as you have had to increase your expenditure by such a large amount that you may be ok.

You need to ring your IP though and tell them about it.

By this stage of your IVA with two pay rises under your belt you should not be struggling, and the IP ought to use an element of common sense when assessing your payments. If you cannot afford to increase them to the level required under the terms of the proposal, then you ought to be able to put a variation request forward for the amount to be lowered.

It is only 50% of any pay rise - but you should submit a new detailed Income and Expenditure form and if this indicates otherwise your IP can either agree a "new" monthly amount or put the case to creditors for a variation - so don't worry and don't struggle. Let us know how you get on with your IP.

Many thanks for your responses. I'm going to speak to my IP on Monday and will keep you all posted but you have calmed the panic somewhat!

Thank you.

My pleasure.