Hello, I have just completed my 1st annual review. Is it normal that payments have been reduced ?

[Mark.76]

Hello

I have just completed my 1st annual review(I&E). My income is basically the same but the only major increase of my outgoings is my gas/electric. My iva company have calculated that my surplus amount is £16 less than the 1st year.

In this situation is it normal for payments to decrease for year 2.

Many thanks.

[relieved33]

It is if your income is the same but your bills have increased.

It's an affordable solution, they will have surplus so be pleased to have the reduction! Who are you with?

[Mark.76]

So I have nothing to worry about for year 2 of my IVA. Do they not have to get the creditors involved if the monthly payments have to be reduced due to bills increasing.

[Foggy]

There is usually a clause allowing reductions of up to 15% without referring to the creditors.

Most firms would have left the payments alone and would have reduced the payment only if challenged, so it would seem you are lucky.

[Mark.76]

Thanks for your quick replies. With it being my 1st review I just wasn't sure what the procedures where.

I am glad this forum is here cause everyone who takes time to reply with advice are very good people.

[mole]

I would perhaps just double check your paper work, some IVAs (like mine) will say you need to make a minimum of 60 payment of £X per month. Or may insist on a minimum dividend. In this case you may need to either make up the shortfall throughout the term of your IVA or add it on to the end.

[Mark.76]

Hello mole

I will double check the paperwork. Can I ask who you are with.

[mole]

cleardebt mark