Hi,my wife and I had our payments reduced by 15% when my salary decreased 2 years ago. Our IVA was with PJG at the time but has since been transferred to Creditfix. Mel always maintained the shortfall didn't need to be added on to the end of the term as it was within her discretion to reduce the payments by that amount. I was wondering if anyone has any experience of this with creditfix or any other companies as we are hoping they will honour what PJG said.
I had a 15% reduction when with RSM Tenon and we were then transferred to Grant Thornton, who honoured the reduction and it was agreed that it would not need to be recouped at the end -- which is the way most reasonable firms deal with the discretionary reductions. Of course, as with anything, some do add it back on ! Creditfix do, however, seem to take the equitable view on most things.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I had a 10% reduction for the first 2 years of my IVA (around £100 a month) following a pay cut. I had to pay back the arrears and have been making overpayments the last couple of years to try to get back on track. With Cleardebt.
It's standard protocol compliant and mentions nothing of repaying it. It just says that a 15% reduction can be authorised by IP without going back to creditors.
we had a 15% cut in year 3 around £50 a month and didn't have to pay it back. But a couple of times when we had to have car repairs done and reduced our monthly payments and we did have to pay this back
getting there ....
Got there!!
IVA started 27/10/2010
final payment 27/10/2015
CC received 6/5/16
Off the register 5/8/16
Obviously there seem to be inconsistancy in proposal or how rules are applied. Looks like I come off worst. After 2 years I have near £2500 arrears.
I did eventually get a pay rise in year 4 that meant I could repay the initial payment that was set and indeed had some extra disposable income. I asked if I could use this extra DI to pay back the arrears. Unfortunately, I was told no, I had to up my payments to allow for the extra income AND make up the arrears from other savings or at the end.
That does seem harsh Mole. Varying from company to company is bad enough but with same company is harsh! Did your proposal have the 15% discretion mentioned? I assume they cannot ask us for it now we've had our completion documents, can they???
