www.iva.co.uk

Hi, i have just had my first annual review, and have stated that I can not keep up the repayments, due to increase of cost of living, even though I have made cut backs, and have asked if they can be reduced, they have come back after rechecking my review and will reduce my payments by £70 to help with the budget, but will extend my agreement by another 12mths! so it will be like starting the IVA again I thought that they could adjust it for the next 4yrs or until my next review, is this normal... oh and they will reduce providing that the creditors agree, if not the agreement will be broken, how will I stand if this happens?

Why are they saying that you have to pay over an additional year. Is this a specific term of the proposal? If not, I would query this with them.

thanks for response, the agreed term was for 5yrs, and this is my first review. I am using Money Debt and Credit, I don't know if you have anyone else that has used this company. They say 'contributions cannot be lowered without consent of 75% of voting creditors. Duration of agreement maybe extended at the supervisors discretion, in order to complete any final administration, but creditors must recieve their final dividend within 64mths' but further on they say and I quote 'at the annual review the supervisor can agree a reduction or increase in the contribution I make. They will provide a reduction if I produce evidence that my expenditure has increased with no corresponding increase in my income and the reduction will not lower the estimated dividend by more than 5p in the £'
so hope that makes any sense? as I feel at a loss, and feel the first year a loss!

None of that gives them the right to extend the term of your arrangement. The additional 4 months simply gives them some breathing space to send the final payment - why this would be necessary I do not know!

Give them a ring tomorrow and ask them why you have to pay an additional year.

hi im with debt andcredit but my first veiw is not due to september
what information did you have to send them , its just that they said that they wont all wages slips and p60 in april ,and im not sure if they needthe wages slips from bfore it was accepted or just the ones after iva was accepted

They will just need to see your wageslips from the date your IVA was accepted.

thanks melanie im glad about that as i can not find wage slip for march[:)]

My IVA agreement states my IP has the ability to lower our IVA payments by upto 15% without having to communicate with creditors to support the situation - it also states that in doing so this may increase the length of the IVA so that the original agreed pence in the pound can still be met, although this is not always the case.

Have you checked your documents and any modifications you had on the day ?

On reviews not only wage slips but you should complete an up to date Income & Expenditure Statement as well.