www.iva.co.uk

I'm coming up to the end of my IVA's first year and been sent the I&E to complete. Because I'm self employed my figures change from month to month. However they have asked for my self assessment from last year, this years books to date and three months worth of bank statements. Looking at my average wage it has decreased by £90 per month this financial year, however I am ok with the payments I make at the moment, I am taking them out of my other allowances, eg...car, hairdressers, entertainment, medical. Over the last 10 months the car has behaved (touch wood) and I've not had too many illnesses, but who's to say this will continue.

Will my IP look to decrease my payment contribution in line with my monthly average or are they happy to keep them as they are? I'm OK with it at present.

There is usually a clause allowing the IP to reduce by up to 15% without needing to consult with creditors, any more would need a variation meeting. It is worth discussing with your IP so as not to put too much of a strain on your finances going forward.

Thanks Foggy, I am aware of the 15% reduction, but I don't want to do this unless completely necessary. I'm Ok at the moment, so will my IP force me to reduce payments inline with my income?

Your IVA payments would have been set based on projections and your IP should really then only need to look at your annual accounts to compare these figures. If you are maintaining these payments in line with the projections and cash flow then there is no reason for the IP to have any concerns.

However if your accounts show lower profits than projected your IP may ask how you can afford the IVA and this is often explained by increased tax credits or lower profits due to non cash items such as depreciation.

Monthly accounts are meaningless especially when a business is seasonal so I cannot understand why your IP wants all this information.

That explains it really well, thank you Michael.

Pleasure. I hope it helps and your IP just does the review as normal.

I think if you are managing the payments then all is well.

Best of luck.

Paul