Im in my 3rd year of my IVA. My landlord has just sold the flat I rent from him. My new landlord intends to carry out a market price review - which could add upto £300 onto my montly rent payments (my previous landlord only put my rent up once in 8 years). My IVA company says its upto my Creditors if they allow me this extra money for my rent. What does this mean. What are my rights.
With my current payments Ive calculated that at the end of my IVA - I would have paid back almost 100% of my £72,000 debt. Surely they cant squeeze even more money out of me - Im struggling as it is.
Gosh - that will be a big jump for you. You must have had a very friendly landlord in the past if he has not increased your rent for 8 years.
This will clearly affect your IVA contribution level, but at the end of the day this has been caused due to issues outside of your control. Could you find a cheaper property elsewhere?
Creditors ought to note that you have only been able to cover contributions at so high a level due to the fact that your rent was below market value in the first place. What are you currently paying on a monthly basis now?
It is quite likely that your IP will need to put forward a variation to creditors to reduce the payments, but you should take adivce from them directly. With a return of nearly 100p in the £, there is bound to be scope to accomodate this matter.
I agree with Melanie - with only 2 yearss to go get your Supervisor to review your current costs including the proposed new rent and see what the return to creditors will change to.
Let us know - but a variation by your Supervisor seems appropriate.
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.
