I am currently half way through paying off my IVA and after my second review in November I have been asked to increase my payments by £10. I understand why they do this as they think I have more disposable income, but when you set up an IVA you are given the total to pay back over a 5 year period and the amount to pay each month so why change that? Also, what are the maximum amounts you can claim on your budget for living expenses, opticians, dentists etc? I live in London and it seems I am currently only allowed £200 for my living expenses for food etc - which does not leave much for me to have any life at all!
The payments are not set in stone when you set up an IVA - if your disoposable income increases then there is a chance that your payments will increase.
Your annual review is set up to make sure that your I&E is fair and that if you have more DI then you pay it across.
You should always put down what you pay for things and be prepared to back it up with evidence (receipts) if asked.
Speak to your IP if you are having problems as you may need to review things.
You will always owe the full amount to your creditors until the IVA is completed so if you can increase the payments then your creditors get more which has to be good.
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Your IP should have made it clear to you at the start that payments are subject to change depending on your annual reviews - and this can be both an increase and a decrease depending on your cirumstances. your budget sounds like it may be on the tight side. Do make sure you are not being pushed into agreeing a budget to make the disposable income look right. The budget must reflect your actual living costs - housekeeping, clothes, meals at work, haircusts, dental/optician, sundries/emegencies and a little bit of adult pocketm oney on sport/hobbies/entertainment.
Never be afraid to go back to your IP to go over your I&E - you do not have to wait to your annual review - your IP in most cases can make a 15% change in your payment without having to formally go to the creditors.
Glad you found us all on here - great place for extra advice and support along the way.
Regards,
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
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I remember after one of my reviews, I was so stressed because I just couldn't afford the increase with my ever-increasing expenditure (fuel mainly). I contacted my IP who was fantastic and asked me to provide as much information as possible with an updated I&E. Within a week, we had agreed a lower figure which put my mind at rest.
Hope you get sorted.
