am i right to continue paying amount agreed

[martin.s]

I am 2 years into my iva. I was with debt matters and had numerous problems with the contracts. They included numerous amendments which i never saw sight of. One of these was an annual review and any increase in income/expenditure increased my monthly payment. I challenged this and had a variance meeting where it was agreed by 100% of my creditors that i would pay a fixed fee of £300 for the remaining 3 years with my property re-mortgaged in the 4th. I received written confirmation of this.

In feb this year payplan took over my iva and stated that all previous agreements would still be in place. They are now asking for an annual review and trying to increase my payments. I have told them of the variance meeting however they say a review is necessary and my payments may increase. Is this correct or am i right to continue paying the £300 a month.

[Viki.W]

Hey Martin, You will need to have an annual review but if your income and expenditure hasn't changed then I can't see them trying to increase your payments. Viki X

[Sarah]

Hi Martin

As far as i am aware if your salary has gone up but your expenditure has remained the same then the monthly payments should go up (i think that is the norm) but if nothing has changed or your expenditure has gone up then payments should remain the same.

I hope this helps

[Oliver]

Hi
The general rule of thumb is if your circumstances have changed and you have income surplus to requirements then you may be required to increase your contributions but you must also review your budgets to see if there are any increased living costs. If your I&E has not changed an increase is hardly likely. I think you need to clarify your agreement with the IP.

[jpj]

With food prices /petrol prices/electricity/gas/ council tax all rising like mad how can anyones expenditure NOT have gone up??? ;o(

[animaleyes76]

but just remember.. inflation IS only 3%...

Sorry i had to strap myself into my chair whilst i typed that for fear of falling out of it laughing....

;o)

[TheMatrix]

Not looking good, inflation @ 3%, payrises below the rate of inflation, higher fuel, gas, electricity and council tax bills.

Higher interest rates to try to curb inflation. I'm not too worried about that one though as I don't have a mortgage, and thus being in a iva no interest to pay.

Another good thing come 2012/13 where I may stand a better chance of getting on the housing ladder as the over inflated house prices finally crash. It will be good news for people who want to buy for the first time with prices within reach of the first time buyer again.

We hated the gazumpers, well look how times have changed, long may the gazundering continue.

[kallis3]

Have to say inaiva, don't agree with the gazundering, same as I don't agree with gazumping. Think house selling here should be the same as in Scotland. But that's just my personal opinion!

I agree that in a couple or so years first time buyers should be able to get a foot on the ladder, but of course it all depends on the people higher up the chain, particularly those that have bought round about now and and are in negative equity. If they don't or can't sell I think the market may still be stagnant.

We bought in the late 80's and then the bottom fell out of the market and we were in negative equity for years. I think this is going to happen now.

Don't think high interest rates are going to work as they are leaving out mortgages and utilities from the equation! People are still going out spending as well!

It's not looking good!