Lowering payments

[simon1973]

I have recently sent in a new I&E form ready for when I move in with partner. We have worked out I cannot keep up the current payment of 490 a month, but I have read the IVA protcol which says is it possible to reduce payments up to 15% without referring to creditors. Does this reduce the amount paid overall, or does it result in making more payments to add up to the same overall amount? And does this apply to all IVA's or only new ones?

I have asked my IP in the proposal if i could reduce payment by around 13% as I feel this is the most I can now afford. (teach me to pick a partner with kids lol)

[ianmillington]

This will strictly apply to cases where the new protocol applies in which case the proposal will contain a provision enabling the Supervisor to unilaterally decrease payments by up to 15% where necessary. Where the proposal does not contain that provision then a variation will be required to reduce payments. Funnily enough, however, over the last couple of months modifications by TIX and GT have contained that provision so if your IVA is fairly recent it may already permit a reduction. Check the proposal and (importantly) the Chairmans Report.

Hope this helps


Ian

[Cybus]

Ian, you've probably noticed how virtually identical the 'TiX compliant proposal' is to the The Simple Consumer IVA Protocol. I was looking at the bumph TiX circulated when they first appeared on the scene. Their IVA Summary sheet is I think identical to the new Annex 5.

Simon1973, your proposal will not fall under the new The Simple Consumer IVA Protocol, as this is only available for use from 1 February 2008. However as suggested above, if yours is a recently approved IVA it may well have been subject to modification to that effect. So, yes, check your chairman's report to be certain

[MelanieGiles]

I have made very few changes in my own practice following the meeting on Tuesday, as we had already adopted the TIX model for cases where TIX have a casting vote. The only differences now between the creditor representatives are now likely to be on fees, where there is still a big difference between TIX, GT and KMPG. It appears that there is no sign of any of them agreeing with the others - and personally I find the GT model the most workable and fair.