Variation meeting for increase in expenditure

[ashingtoon]

Hi, my fixed term mortgage has come up for renewal and is going to increase by £230. I have tried to rearrange but no one will touch us, obviously as we are in an IVA. I have contacted my IVA company and they say they are sending a variation package out. What does this entail? What will I need? I havent saved my bank statements as I thought I would only need the last 3 coming up to the end of the term, which is not until next feb/march. They say its another meeting with my creditors and if they dont agree it could be bankrupcy. Im very worried. I dont want my IVA to fail but as im only in year 1 wonder whether my creditors will be understanding. Help!

[indebtforever]

i should think you will be ok it benifits no one to fail the iva and creditors will get much less in BR i hope it all goes well for you.Have you tried your exsisting lender for a new deal i wouldn`t have thought they would do a credit search.?

keep posting
good luck

[indebtforever]

As for the package i would think it will be a new income and expenditure form just as in an annual review , they just need proof of any increases this will determine how much you will be able to offer to creditors monthly at the variation meeting.

[luluj]

We recently had to do a income and expenditure review folling a change in our income of £3k a year. We had to send in receipts showing where out I&E had increased from the original amount...I also enclosed the last three bank statements, pay slips and our P60's.
Our IP reviewed this information and decided no change to our payments - astounded was my response but pleased as you can imagine.

Hopefully your IP will be able to arrange a reduction for you considering the changes to your mortgage payment.

[ashingtoon]

I hope so. Thanks for the help xx

[ashingtoon]

What! We have to do everything again!? weve just done this for the setting up in feb. Is their no way we can just send the mortgage letter as this is the only change. What if they wont take a reduction? What happens then? They said it would be bankrupcy but is their any other options?

[MelanieGiles]

I would not need any other information than the letter from your mortgage company confirming the increased payment.

[pbeck]

Ashington

You can ask your bank for copy statements, there will probably be a small fee for doing so.

Probably the variation will just be a simple letter to the creditors saying that your mortgage payments have gone up by £XXX and you have been unable to obtain another fixed rate deal, therefore the creditors are asked to accept reductions in the IVA payments by a similar amount, so I suspect that most other things in the budget will remain the same.

Some creditors are fussy about accepting variations put forward so early in the IVA, particularly when the IVA has only just been set up and it would have been known at the time the IVA was entered into that your fixed rate deal would be coming to an end. Let's hope your IP has a good relationship with the voting departments for your creditors' representatives.

If the creditors refuse to accept the variation, then possibly the supervisor may be obliged to petition for your bankruptcy, but these days many creditors see that as a waste of money and would prefer to see the IVA simply fail and the debts get resurrected. If that happens and you don't want to go bankrupt at that time, then you'll probably have to enter into a debt management plan, but check to see how long it would take to clear your debts under that.

[ashingtoon]

That sounds worrying. They had all my paperwork about my mortgage when the iva was set up. Im not hapy we might be forced into banckrupcy because of this. Surely they should have discussed our fixed term mortgage date at the beginning as mortgage rates were increasing then, when it was set up. Is there anything I can do here? Dont know if i can face doing all the work again for one change in my expenditure. Itsa lot of work and i found it qute wearing the first time, not sure im strong enough to go through this again.