2nd year review

[David Mond]

We as practitioners are between a rock and a hard place! Under the IVA Protocol we must follow CCCS guidelines (which in the main have increased). This ensures that the IVA will go through. I accept it can be difficult for certain clients to live within the budget but by skimping here and there and allowing for no unforeseen circumstances it appears in all our cases (bar a very small minority) they are working. If circumstances change such as the recent spate of higher costs of living we have done several variations which all have been accepted.

[MelanieGiles]

Notwithstanding what goes on in our practices David, our profession generally is suffering and continuing to predict drop off rates of between 20% and 30% - so a little more flexibility within allowances, and going back to letting you and I assess our clients affordability would, again in my opinion, vastly improve that position.

Variation meetings are one way forward, but creditors continue to tell me that they are seeing far too many in the first year of the IVA. Who is getting it wrong - creditors or IPs?

As a matter of interest, as a fee-paying DMP company, do you rely on the CCCS or CFS trigger figures when proposing DMPs, or do you use the client's own figures, properly verified and within reason?

[moretolife]

interesting to see healthy debate re this subject beteen IPs...as the originating poster i was slightly alarmed if this review could cause us difficulties in future reviews ..but i think on re-reading the thread this wasnt the intent..phew
we have paid in full and on time for 24mths with no problems and havent asked for any reductions or asked for a variation..we presented full accounts from my self employment inc up to date HMRC receipts...plus OH payslips...plus recent receipts to detail increases in fuel and housekeeping....and also policies for the dog and house insurances etc...so perhaps our two year "good " history and a fully documented review made it easier for the IP to act on her discretion in our favour???
whatever...we are incredibly grateful for getting through it without any changes and apart from a threat of redundancy hanging over us we are looking forward to getting through this 3rd year too

[MelanieGiles]

MTL - from your postings, and my recent chat with you personally, you and your hubbie are the model IVA clients every IP would wish to have a portfolio full of!

You are dedicated and commited to making this arrangement work, and appear to have a sensible IP firm behind you, who understand that it is difficult to live through five years of a fairly restricted budget - but a little flexibility goes a long way to enuring the result is eventually achieved for creditors.

And don't forget that that possible redudnancy, might just be the opportunity you have both been looking for in the future!

[moretolife]

thanks melanie...your kind words have made my day.!!! and yes....in a strange way the redundancy could well be an "adventure."!!!!!....will no doubt need the help and advice from yourself and friends on forum if anything does happen...
thanks again

[Jan01]

Our 3rd review is due at the beginning of November I still get nervous about it each time. Every year our payment has increased by a fair bit and I am glad to say we haven't missed a payment or asked for a variation. I am hoping that our payments remain the same this year to take into account the rise in the cost of living etc. Last year our payments were increased by £50 a month even though our rent council tax utility bills all increased. and our income increased about £100 per month and there was a real problem as my travel expenses were added into our income. That was sorted but our monthly payments remained the same. But we have managed to pay what was asked but i am not sure what else I can cut down on now.

As Moretolife said it is good to have a good debate going on and interesting to find out how the reviews are assessed by some IP's

Jan

[MelanieGiles]

Don't forget that that annual review process is just as much for your benefit as the IPs. It is the change to put forward a revised future budget, based on costs you have experienced over the last year, and those you anticipate into the future. No-one should be frightened of this process, and payments should only be increased if they are affordable.

[David Mond]

I believe we use the CCCS guidelines for DMP's as well as IVA's but I will check with Size5

[size5]

Morning everyone.

To answer the point re DMP's and CCCS guidelines, we do generally stick to the same rules as for IVA's, with one or two exceptions. For example, although it is right and proper that you allow something for contingency purposes on an IVA, I am told by the creditor liaison team that creditors are very reluctant to accept that on a DMP. To be fair, it works the other way with regards to one or two things so it does tend to balance itself out in the long run.

Regards.

[MelanieGiles]

Most of the DMP companies that I deal with report that they receive little resistance from creditors regarding expenditure levels, or if they do they refuse to budge and this is usually accepted. To disallow contingency expenditure is a recipe for failure in my opinion, and ought to be fought if necessary.