been in an iva for 3 years, since jan 09 i have been on short time at work. 4 day week. so my wages have decreased considerably with lack of overtime etc... was paying £660. a month.. now after completing a i/e sheet , they have agreed to finally drop repaymants to £496 a month. but they want me to authorise an authority to extend the iva for an xtra 12 months if my creditors deem this neccesary... 1, can they do this and 2.. at the end of the 5 year term and they do want to extend by a year. will i be paying more in the longrun than i originally agreed to pay. its not my fault im on a 4 day week because of the recession. it just seems like im being punished for something totally out of my control. advice and reassurance would be very gratefull.... myles. ps,, why do iva firms never reply to letters or emails and just leave you to worry about making repaymants, they are quick to get in touch when you hold a months money back like i did, they soon got on the phone then...
I would try and resist the additional year if I were you. As you say, it is not your fault that your hours at work have been shortened - and it is down to creditors to place that request and not necessarily your IP's job to offer it in the first instance.
I am not sure about your reference to IP firms, but can I assure you that in my firm we do respond to client correspondence in a timely fashion, so it is a little unfair to tar the whole profession with your own experience of your own firm. If they are not responding to you, then lodge a complaint with the Senior Partner or Managing Director.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
It does seem a bit unfair that youre being forced into another year, isnt 5 years enough? And you agreed to pay what you could afford over that time and if thats what you can afford...... to me and its only an opinion its like extending your prison time for bad behaviour, which isnt down to you, credit crunch time for them too isnt it?
It does seem unfair when you appear to of done what you can to repay oveer the past three years.
Don't know if anyone noticed, but by extending this they have will be getting more from you than original agreement!! My calculations work out that you would of repaid the original amount in only 8 extra payments...
I have a follow on question that hopefully one of the IP's may be able to answer: If an IVA is extended, would the 'Supervisor' be able to claim additional costs for managing the additional collections/payments?
Apologies, I am a normaly a cynic when it comes to contract negotiations at work and thought of this a potential conflict of interest?
It is only fair to expect to be paid for additional work carried out in supervising the IVA over a longer term, but most IPs agree that five years is a realitic timescale, and most of us do not like seeing extensions - fees or no fees.
I too agree that it's completely fair for an IP to be paid more for more work performed in the Supervisor capacity. But I would be concearned if the extention is proposed by the IP rather than by the creditors. However I suppose it is reasonable if they are just preparing for what they may see as a fore gone conclusion from the Creditors.
How common is it to have a variation due to lower income, which results in paying an additional £656 beyond the original agreement?
Myles, I know how you feel. My other half had a cut in wages, and we were told by an 'inexperienced' person (as far as I am concerned) that we would have to carry on paying the amount we were paying. I eventually got in touch with my IP, who then passed the buck to his underdog, about my payments and it was agreed that we should in fact be paying less.(it's a good job I queried it) We are paying no less than what was set out in the original agreement so no arrears are being added, but hey, who knows what they will say in the future. Good luck
thankyou for your advice, so do you think i am in my rights to write to synergi saying i wish to resist an xtra year of my iva.. if i was to agree and my circumstances changed.. ie, back on 5 days and increase in wages then i would be paying an xtra year for nothing.. do you have a template letter for this kind of qeustion...or should i just write and say no i wish to stay within the 5 years.. help on wording a letter to this effect would be a great help.... melanie.. didnt mean to tar all your profssion with the same brush... apologies... many thanks once again... myles...
I am sorry that you state that IP firms don't respond to letters and emails. Who are you IP firm?
You can propose anything to creditors which is reasonable and appropriate and discussions with your IP is appropriate. Sometimes it is more difficult to just not offer anything - and that is why your IP has suggested a reduction and tag the shortfall on to the end. It all depends on your particular circumstances as it may well be that your original proposal and any modification promised a minimum dividend for example.
Have faith in your IP BUT discuss all options with him/her.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
i wrote a letter to synergi saying i do nt wish to agree an xtra year to my iva as i think 5 years of my financial life is enough. my circumstances might change for the better and in effect il be tied into another year for nothing, if i owe any extra at the end of the 5 years i said i will negotiate with them at the end of the 5 year terms, i will pay the reduced ammout every month till my circumstances change or the term of 5 years finishes. i also put in the letter as you are acting as my ip i wish you to follow my instructions... i sent the letter now so im waiting for a nasty response or something, was i within my rights to write that or should i expect a nasty response from my ip firm , synergi.... dreading the phone going now.. lol... reassurance required please if possible... myles...
You should certainly not receive a nasty response from your IP - even if they do not agree with you, this does not give them grounds to act in an unprofessional manner.
