My IVA has been ticking along without problems, but I've just had a big drop in Income. I'm with Stepchange and going through a variation, my advisor warned me as my proposal decreases the payments they may request the term is extended by 12 months. Is this right? I will check the small print, but thought I'd check with the experts! Thank you
This is a possibility if the projected dividend drops too much. When you propose a variation the creditors are always at liberty to come back with counter proposals as you have effectively re-opened negotiations.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
If the reduction was for 15% or less or brought the payments down to their original level then a variation would not be needed. However this must noit be the case so an extension is likely if creditors accept the reduction.
