Change of circumstances

[NJ1973]

Hi all , i recently posted that i needed to move house as my tenancy agreement was up and couldn't be renewed. I managed to find somewhere after a lot of hassle but was wondering where i now stood as my rent has increased by £50pcm.I spoke to Clearstart in May and explained this and they were fine and explained when it all goes through just get in touch and they'll send out a revised I&E form and amend accordingly.Since then my IVA has been transferred into DFD and when i spoke to them on Friday about this they said i would need to use my contingency to fund this extra rent amount. I said to them that to be honest i pretty much use my contingency to just about live every month and there's no way i can absord another £50 in my allowance. This seemed to fall on deaf ears and was suggested that unless i do this i will default on my IVA.Can someone please advise as i'm now confused and pretty worried , i've been in my IVA for 20months and never had any issues before this.

[Viki.W]

That seems a little unreasonable, how much a month is your IVA? I'm sure one of the experts will be along to advise you. X

[MelanieGiles]

Your rent increase ought to be taken into account when calculating your disposable income. Can you continue to make the original IVA payments, or will you need to reduce them?

[NJ1973]

Viki , i currently pay £450 a month to the IVA which leaves me £400 a month to pay for food ,utilities,bills,travel etc.

Melanie , it would be a huge struggle to make my current payments as well as the new rent , i was looking for a reduction if possible , i did explain that my travel would be reducing by £20 a month so maybe i could meet halfway, but they said i would still be defaulting?

[Viki.W]

I'm not an expert NJ1973, but I'm sure DFD could reduce your payments by up to 15% without the need to contact creditors and if clearstart had already agreed this then I think you should take it further. Try emailing your IP direcly. X

[MelanieGiles]

You will need to check this out with your IP to see if they do have discretion to reduce the payments. If not this is still possible by calling a meeting of creditors to vote on alternative proposals.

[quark2008]

£400 per month seems a frightening low amount to live on, are you that's right ?#13;#10;

[luluj]

They maybe able to reduce your payments by 15% without calling a further meeting - however this will depend on what is written in your chairmans report - DFD write this in to all their's not sure whether Clearstart did - even though they are one company now, it does not mean that the same conditions apply - your original set of conditions will still be applied.

[Moneystinks]

Any luck NJ?

I hope you get sorted soon. XX