can the IVA company increase my term?

[caroline.m]

Hi there I have had an IVA since May 2002 and it was due to finish this month the IVA company have now said I have to pay 2 years at £400 a month (Idid default during the initial five years) but I have however not signed anything to increase my term can they do this?

[chris_]

This sounds familiar!

I have been posting on these forums recently about my IVA increasing from 5 to 6 years and beyond. In my case this is due to a modification on my IVA that states that I keep paying until my creditors get 75p/£. This should have been June last year (ie after 5 years). However my IP has kept on increasing his fees year on year and the result is that I have to keep on paying. It maybe that you have a similar modification.

You say thay you have defaulted over the length of the IVA, do you mean that you have missed some payments - or somethinbg else ?

Chris.

[gimmewine]

glad to see you're still posting Chris. Did you put in a stiff letter of complaint to the IP governing officer? If so, how did you get on?

[chris_]

Hi Gimmewine,

Please look at current post 'everlengthingingiva-part2'

Gives details of that the IP has actually charged me for !!!

Chris.

[Andy2]

Hi Caroline

When you say you "did default", how big a default was this ?

[MelanieGiles]

Hi Caroline

IVA's can only usually be extended if the proposal provides for this. Sometimes proposals will exercise a discretion on the part of the IP to extend in order to achieve the dividend pledged, and this is what seems to be happening in your case.

I don't think that you can blame your IP for continuing to try and get the creditors repaid - and there are obviously reasons for this such as your missed payments. Talk to your IP directly about this, to get a fuller explanation, and make sure that you understand the basis of any additional charges which are likely to be made for extended supervision.

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