Coming up to the third anniversary of my IVA

[jonathancs]

Coming up to the third anniversary of my IVA, my IP has asked for an increase in my monthly payments. This was originally explained as a result of my increase in salary; as a teacher I just about keep in line with inflation. When I rang my IP, I was told that the figure originally agreed was in danger of not meeting the minimum repayments over the 5 years of my IVA. I was also told that my expenditure figures (which I have provided every 6 months) were in excess of 'current guidelines'. I have since been sent a copy of the guidelines (which include £30 per month for Sky subscription!) which I have never seen before, and to my knowledge were not recommendations at the time I signed the agreement. At the time of signing the agreement I was signed off work with stress related illness and wanted some peace of mind; I now find myself in a situation where I have, to the best of my ability, followed the terms of my original agreement, and now see that the goal-posts have been moved. Do you have any advice? Thank you in advance.

[MelanieGiles]

Hi there and welcome to the forum

I think that you firstly need to ensure that any suggested increased payment is affodable - to accept something which is not will put the whole IVA in jeopardy and this is in no-one's interests.

Do you have a requirement to effect a minimum dividend criteria within your IVA? If so, the IP seems to be suggesting that to meet that figure over the next two years your payments will need to increase.

You should also find out why the figures are now so much higher - have creditor claims increased significantly, and was a proper audit of these balances carried out in the first place?

[David Mond]

It would be interesting to compare your I&E put down at the time of your proposal and what it is now paying recognisence to the CCCS guidelines. We can then advise you appropraitely.