www.iva.co.uk

One for the Experts or anyone who might know?.....

As of 1st April 2008 people will pay upto £350 less/more tax a year depending your Income.

How would IP deal with the decrease??? This is unprecedented, it is certainly not covered in the Modifications.

If a pay cut due to tax increase of £50 occurs how would it be seen?

IVAs proposed under the new protocol allow for the IP to reduce monthly contributions by up to 15% at their own discretion. And for earlier proposals it is just down to good common sense at the end of the day.

Hi
Under the new protocol compliant IVA tour IP would be able to reduce your payments by upto 15%.For an IVA outside of the protocol your IP would have to arrange a creditors meeting to seek agreement for a reduction in your IVA payments
Regards
Regards

when i asked my ip for a reducn of 15% under this clause due to a rise in rent of £25 per week, he told me he would have to extend my iva to cover this, why ?

In my IVA it states that a minimum of 25p in the £ must be met & anything below that would be mean the IVA a failure,so perhaps thats why your IP wants to extend your IVA.
In order for me to achieve 25p in £ my IVA is for 6 years instead of 5.

The 15% discretionary reduction does require the lost money to be made up at the end of the arrangement - but does not extend the arrangement over a further 12 months.

Sorry Mel I meant my IVA was agreed at proposal to run for 6 years to achieve 25p in £.