www.iva.co.uk

Hi guys,

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.

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.