www.iva.co.uk

We have been in our IVA for just over 2 years. Due to a rise and outgoings and no rise in incomings we have just had a variation agreed with our creditors for a drop in payment. Felt so relieved back on track.

Not for long as today we get a letter today from mtg company saying mtg is going up by £80 and an email from Gas elec company saying £50 increase. I rang the mtg company they cannot offer a better deal and tried with gas and elec but can only get a small reduction to £30 per month extra. So in total £110 extra a month to find.
As our IVA payment is £225 this represents a lot to find.
I was upset and spoke to a family member in floods and she said she would be willing to lend us some money to pay if off, but she only could offer us a smaller amount.
I worked it out that the remaining amount would be £225 x 33 months so £7425. My question is would they take the drop in disposable income into account and look at £225 minus £110 = £115 x 33 months = £3795. My Aunt has £3,500 she would be prepared to lend and we could make up the rest.
I will ring the IVA company tomorrow but before could really do with some reassurance tonight as they are closed and I am feeling so stressed.
Thanks in advance.

Hi AM77 - closed at 4.20?! Who are you with, they may have a representative on here who is available outside of the office hours. Sorry to read about your stress, its horrible to have that overnight with no-one to speak to, that's why forums are such a great support.

If your disposable income is going to have to drop to £115 due to enforced expenditure increases then that is what assessment of your future contributions should be based on. Creditors, on presentation of your variation, may have requested an extension so it would not necessarily stand at only 33 months remaining however, you have been offered a solution and it is up to your IP to put that forward and see what the creditors will accept. Would your remaining DI be used to repay your Aunt? If so, you need to have that made clear in the variation so the creditors do not think the lump sum is an offer on top of the reduced monthly payments.

Have a chat with your IVA company tomorrow to discuss your options and put your mind at rest (as much as it can be until something is agreed!)

Keep us posted

I am such an idiot sometimes, my daughter finished school early and my timing was so so off, will ring them now. Thanks again!

Ha ha and there's me thinking there were part-timers in our industry!! Hope the chat goes well