Reduction in Payment

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Seaxe

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Joined: Fri Aug 24, 2018 10:13 pm
Post by Seaxe » Tue Sep 29, 2020 2:52 pm
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Folks

At last years review due to a number of bills increasing etc my IP reduced my monthly payment by just under 15%.

This years review is due in 4 weeks and my costs are up again mainly due to now buying monthly train tickets instead of an annual season ticket (Covid related - due to employer not doing loans for annual tickets now). The increase along with a number of other small variations up and down comes to about 12.5%.

Are the IP only allowed to make the one 15% reduction during life of the IVA? eg: can only reduce to 15% less than starting IVA monthly payment. Or can the monthly payment be reduced by up to 15% at each review?

Anyone have experience of this.

Thanks
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Foggy

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Posts: 33396
Joined: Fri Dec 17, 2010 11:14 am
Location: United Kingdom
Post by Foggy » Tue Sep 29, 2020 3:36 pm
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They can only drop to 15% below the originally agreed payment, over the life of the IP, without reference to creditors. They can go to creditors to see if they would agree to reductions over 15% going forward.

Because the increase is, in part, covid related there might be further scope in the covid guidelines here: https://www.gov.uk/government/publicati ... a-protocol
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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