www.iva.co.uk

I am coming up to the end of my second year in my IVA. My payments went up at my last review from £222 to £368 PCM. Since then my monthly wages have increased slightly but my expenditure has risen more.When it comes to my next review, i think it will turn out that I am struggling to make the £368 PCM. What I am wondering is, if my payments do have to be lowered will this be a problem. I know that normally if payments have to be lowered the IP has to go back to the creditor to amend the agreement. But will this be based on my sum being lower than the original payments of £222 or the amended sum of £368 at the end of the first year.
Also is there a cap on what you have to pay into the IVA pcm or can some people end up paying more than they owe, due to sustained rises in income? I am coming up to the end of my qualifications doing day release from the office, so next year I am expecting my income to go up quite considereably, and im not too keep on having most of it taken away from me. If I knew this was going to happen I may have not rushed into the IVA as I could have managed my debt much better.
Any help would be much appreciated.

Thanks

Hi
Your IP can reduce your payments without going back to creditors as long as they do not dip below the originally agreed amount.
The most that you will pay will be the total of your original debts plus IP fees and sometimes statutory interest.
I know that it can sometimes feel that you would be better off coming out of the IVA and dealing with your debts directly once your income improves,but just remember the freezing of interest,charges and no hassle that you have had for the duration of the IVA.
Stick at it
Regards

Hi Howarth,

Hope you can get your payments reduced, would be a shame to give up. Keep in touch and let us all know how you get on.[:)]

xx

Have to agree with both replies. Having completed my 5 years plus 1....I'd also say stick with it!! I did a DMP before the IVA and was constantly hassled by my creditors, really wished I'd done the IVA straight away!!

I think that the protection and IVA gives you from all the hassle of creditors is worth its weight in gold.

Hang on in there Howarth.

Debbie

Your payments shoule be assessed on the basis of your disposable income, and nothing else. So, given that the cost of living has whacked up over the last year, it is perfectly reasonable that you be allowed to reduce your payments if you can no longer afford the uplift.