Hi there, I was wondering if you could tell me what is the maximum time an iva can last. I pay each month but a few months ago my mortgage payment went up so the iva agreed to reduce payment but increased the term by 12 months. then my employers reduced my hours so again i had to ask the iva if i could reduce payments, they agreed but again the term went up by another 12 months. when i started i was told that the iva would last 4 years but when i signed the agreement form i notice it was 5 years. now, because of the changes in payment it's 7 years. can they increase the terms every time there is a change in payments? none of the changes were my fault and i have never missed a payment . i am worried that it will never end.
Hi Carrie --- which firm are you with ? They usually have the discretion to reduce payments by up to 15% of the original payment amount without having to extend at all. Of course, if the payments were very low to begin with they would be unable to do this and keep the IVA alive. They would also have to extend if there was a minimum dividend agreed.
The extension should also only cover the reduction loss, not be automatically 12 months.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
