Annual Review

[spenmotherhen]

Hi Just looking for a bit of advice/experience

We are just about to put our first yearly review in and are concerned as our outgoings have risen quite dramatically in the past year.

Our mortgage has come to the end of its fixed rate period (we have an interest only mortgage) and has risen an extra £100 per month. On top of this our gas and electric monthly direct debit has also gone up by £90.

We have also taken out cover on our washing machine and tumble drier as we could not afford to buy new ones if they broke. (We have four children and it would cost a fortune if we had to go to the launderette)

This has made quite a difference to our monthly budgeting as we are now cutting back in other areas to cover these extra outgoings. We have been selling alot of our unused household items, which has seen us through the last couple of months.

My question is, when we put our review forward obviously our disposable income will be less, does this mean that our IVA payment may be reduced. If so do we need to catch up with these payments in the future such as when we release equity from our home?

Or does the IVA payments addapt to the changes that occur.

Thanks for any info x

[MelanieGiles]

Hi again

I am afraid that the only way you can get your IVA payments reduced is with the express agreement of your creditors at a newly convened creditors meeting. How much are you required to pay, and how much do you think that you can afford? It may be that you can present a variation to the original proposals to your IP for his/her consideration, and if they feel your revised offer is feasible they can present revised proposals based upon the lower sum. Creditors will then have to vote again - and you need that same 75% majority voting in favour.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[spenmotherhen]

Thanks Melanie
We currently pay £440 per month which we could continue to pay, we just juggle our different pots of money around.
I would rather continue paying this a month, than have to go through the risk of being rejected at another voting meeting.
My concern was that we would not have a choice and the IVA payment would be reduced and we would have to recoup later.
Thanks again Tracey