www.iva.co.uk

Hi all

I need some advice I rent out a property and the tenants moved out so my wife emailed DFD the following Hi Team
I am writing to let you know that my payment from 01/08/2011 will be £552 as our tenant has moved out and we have not received any rental income this month.
I have adjusted my standing order to reflect this.

Instead of them just reducing the payments they have added the rental income amount for august and september on to the end of the arrangement which I think is unfair if I have not received this income why should I have to extend my arrangement and pay it at the end? I have spoken to dfd and they have said i cant just tell them my payments have reduced they need to do a full review and blamed us really when I thought I had done my bit by telling them of the change.we asked to speak to our IP but was told she does not deal with the day to day running of things I am really unhappy with this my original proposal was £552 and it is now £870 but august and september were back to £552 until new tenants have moved in which they have now so does this mean I need to do a full review to drop the 2 months to £552 and then do another review to put it back to £870 seems silly really?
Thanks

Hi Johns,

Sorry to hear of the problems you have had.

Hopefully Declan can pick up on this one and help.

Thanks Kallis
Hopefully someone can advise me on what is expected of me
I honestly thought all I had to do was inform them of any changes so I dont see how it is my fault.

Hi Johns - Declan will picks this up asap to clarify on the review I am sure as soon as he sees it.

You did the right thing by notifiying them but it should have been prior to any action being taken. DFD are right in that a client cannot just reduce their payments themselves regardless of what the reasons as you have legally agreed to pay the agreed amount. In circumstances where reductions need to be made it is with the agreement of the IP and decided on whether it will affect the term of the IVA or not, depending on the amount of reduction etc. I know you haven't received the rental income but your proposal was based on a certain overall amount going to creditors so that must be factored in.

I think this just boils down to a misunderstanding of the process to be followed when problems occur and hopefully Declan will clarify for you so that the same does not happen again.

Glad you have found new tenants quickly

Hi
Thanks for the reply but I have been in this IVA for 3 years and I have had many tenants move in and move out and all I have done in the past is call or email and they tell me to adjust my standing order as either way it does not drop under the proposed amount and I always have a receipt for my email and then somebody usually calls me back within a week or 2 and i emailed them on 27th July to have my payment changed for 1st of august as if I did not change the standing order and paid them £870 I have not got then I would not be able to pay my other bills which all comes out on 1st august I could not tell them earlier as the tenants did tell me in june but could not give me an exact date and said they may need longer than a month and I would just like to know why it has changed all of a sudden and why I should have to pay this amount.Also when I took the iva out it was for 5 years it was aleady extended to 6 years as NR would not approve it then it went up to 6 years 3 months due to payment breaks and I dont want it dragging on any longer.

Hi Johns

Sorry to hear your issues.

Most of the issues relating to reduced payments or payment holidays do result in misunderstandings and I myself have experienced difficulties which were out of my control and understand yout frustrations, especially when poor communications in larger organisations are at the expense of yourself.

But the reality is the creditors will expect the minumum dividend regardless on circumstances and will extend until all contributions are met.

I look forward see the response from Debt Free Direct on this.

Regards

Mark