Hi,
I have been contributing to an IVA for the past 2 years. My IVA has now gone up as I agreed to the figure because my car HP has ended which wasn't included in the IVA. This is fine but after I stated that I will pay no more than that firgure for the next 3 years and no longer than 3 years they have said that this may have an adverse effect on the successful conclusion of my IVA. This due to certain modificaions they raised at the start of my IVA: 1)failure to pay unsecured non-preferential creditors a minimum of 35p in the £ shall be deemed a default of the arrangement. They say that the dividend was calculated on the estimated creditors claims at the time of approval.basically should some outstanding claims be hier than original estimates, I will not achieve the required dividend and therefore they will have to request an increase in contributions. Can they do this? Why wasn't there a final figure obtained at the time? I don't want to pay more than they originally told me I would be paying!
2)The supervisor to review the debtor's income and expenditure annually with a view to increasing payments into the arrangement.
basically if I earn anything more they can take it from me!how do they base the increase in contributions?what is realistic that they can ask for?I'm basically stuck and if I earn any more I don't get to see any of it and I will always be struggling!!
Can I settle my IVA early if I vcan get funds from family? or can I change company who will know exactly what I owe and set a figure?
Thank you for your help
Hey tje, welcome to the forum. I'm not sure whether you've got the 50/50 clause in your IVA about overtime etc but I would dig your paperwork out and have a read. Usually if you earn any extra then you would have to pay it over to the IVA less any increase in expenditure. You could possibly settle your IVA earlier with help from family but you should really speak to your IP directly to have everything explained to you. Hang in there and one of the technical experts will advise you. X
You agreed to those modifications at the creditors meeting, and they are hardly unfair. If your Supervisor verified the creditor claims prior to the proposal being presented, there should be little risk of them coming in much higher. With regard to increases in payments, this is a feature of an IVA which has always existed, and if your fortunes change it has to be right that the creditors should share in this increase - which will be calculated at he discretion of your IP.
If you have access to family funding, it might be sensible to seek an early conclusion of the IVA, however you will need to obtain a settlement figure from your Supervisor, and presumably this money will also need to be repaid, but family are usually a little more flexible if you cannot pay for a month or two.
