IVA and price hikes.

[randomdude]

Hi All,
I expect that this may have been asked already but if not...here goes.
I have just had my annual review and apart from the standard couple of quid rise in payments, all continues the same.
My budget accounts for everything and all funds are now used.
My question is this, as a everything has gone up massively, electricity is 32p a unit for me now, practically doubled, petrol, council tax etc , a lot more outgoing since review (3 weeks ago)
Can I ask my IVA people to revise my budget given the circumstances and get my payments reduced to compensate?
For the record I am paying £278 per month and am on 3rd year.

Thanks in advance

[randomdude]

Ive just read that some IVA companies have offered reduced payments, but to extend the term if accepted......how can the IVA be extended like that? , surely this is a cost which impacts on your income so should be included on your outgoings
I havent yet received any offer of reduced payments.

[kallis3]

I believe it is only CF who are doing this. It is totally up to the client as to whether or not they accept this. Personally speaking I wouldn't do it.

[Foggy]

In the normal course of events an IP has the discretion to reduce payments, without reference to creditors, by up to 15% ( based on the original payment levels agreed) and without extending the arrangement. They can reduce further, if needs be, by convening a meeting of creditors to ask if they would agree, or not.

What Creditfix appear to be doing is jumping directly to a large reduction and mitigating this with the extension (coincidentally protecting their income stream at the same time). They can only do this with agreement from all sides (i.e. debtor and creditors).

[lauren923]

I am currently awaiting a outcome for a change in circumstance review , i have asked my IP to lower my payments by 15%.
I pay £249pm and if accepted will be £213pm

My rent has increased £40
I’m paying a extra £30 national insurance per month , electricity direct debit has gone up £35 per month , council tax £3 per month , car insurance £14 a month , my food and petrol has gone up I’m working 6 days a week two jobs with no pay increase , I honestly don’t know what else I can do , I’m still going to struggle with the 15% lower payments. It’s so tough for everyone

[Foggy]

I am hoping that the Insolvency Service see fit to intercede, as they did with the covid changes, and introduce some emergency measures, for the protection of debtors and creditors alike. Otherwise we will be seeing many arrangements failing in the not too distant future.

[randomdude]

Yes, I totally agree that something has to be done, if your financial circumstances change, then this must be reflected in the amount you can afford to pay, these price hikes, through no fault of your own, affect your budget.
They seem happy to increase amounts if finances change in the opposite direction.
Although IVAS are there to help, and mine has certainly helped me take control of my situation, we still pay for it financially and in terms of restrictions imposed upon you.
The idea that a reduction in payments now could result in a longer IVA term, to me seems absolutely ludicrous and completely unfair. in theory you could be living under the terms of an IVA for 20 years should price hikes continue.
Like Foggy said, people will just go bankrupt
I have actually emailed Stepchange to ask if there will be a review and am waiting for a response.
Thankyou all for replies.

[luluj]

Interested to see what Stepchange come back with on this for you.

So many people are going to see their ivas become unsustainable unless something is done more widely to help.