www.iva.co.uk

We are five years into a six year IVA, and have co-operated fully from day one - we are uptodate with our contributions and have completed all Annual Reviews as and when required. However, out of the blue, today we received notification that we owe £7,000+ in Additional Income, and that we are required to phone Credit Control asap - the first time such a notification has been recieved since the commencement of the IVA. We are presuming that this is a cumulative amount, although in recent years, our income has been decreasing annually, and it has been a struggle to make our monthly payments (I have disabilities, and am currently awaiting a tribunal hearing after having my Personal Independent Payment stopped in September 2017 - this meant that additional Working Tax Credit payments ceased also, and we have been effectively down £600 a month). The stress is proving very difficult to manage, and we are unable to talk to our IP (MoneyPlus) until tomorrow afternoon. The prospect of completing our IVA early next year has been a light at the end of a very long and dark tunnel, and we really don't want to have to extend our IVA for X no. of years in order to pay the Additional Income owed.

We feel that we have been let down by IP, in that they have not fulfilled their duty of care - if we had been made aware of the Additional Income owed after the first and subsequent Annual Reviews, we would hopefully have been able to adjust contributions accordingly, or make other arrangements. As things stand, we simply do not have the means of paying the amount stated.

Would bankruptcy be the sensible option in our case, or can anything else be done? Any advice would be much appreciated.

Presuming annual reviews of incomes and expenditure have been conducted correctly and any increase of salary addressed as you have gone along, I would ask for a clear breakdown of how they have arose at this figure. Increases in salary should as you have said be dealt with at the time.

Do you own your own property ? Is there equity within it ? Has this been addressed or could this be the reason ?

I would not consider bankruptcy at this stage - you have come so far in your iva journey and I believe this maybe a administrative error - stick to your guns and don't agree any increase in payment until you have it clearly explained in writing how they arose at this figure particularly as your income has reduced over the years.

Let us know how you get on

I agree with Luluj. First of all get a clear explanation as to where they think this money is due and why.

Thanks both,

Firstly, we rent our property rather than own it, so no issue with equity.

Our income at the time of commencing our IVA was very low, so it wouldn't have taken much to go over the initial level; however, our monthly payments were increased after the first or second year to account for any early increases. We are yet to thoroughly go through all the paperwork received, although we have checked that there is no previous mention of additional income in previous statements, which there isn't.

We will be phoning MoneyPlus this evening, so will hopefully know more then. Our concern is that if the IVA has to be extended, we will be caught in a loop of having to seek an increase in our income to cover the additional income, which we will then have to repay as additional income!

Thanks again.

Good Morning, I would be grateful if you could contact MoneyPlus on 0800 988 8152 to discuss the issues you have raised. We have specialists available until 6 pm today who can assist

GaryB1968 wrote:

Good Morning, I would be grateful if you could contact MoneyPlus on 0800 988 8152 to discuss the issues you have raised. We have specialists available until 6 pm today who can assist

Good Morning Gary. Thank you for responding to this poster.

I hope we see you again on the forum.

Thanks Gary,

We are not able to phone today or tomorrow, as we will not be home before 6pm. In the meantime, we hope to put something in writing over the weekend.

SL99 wrote:

Thanks Gary,

We are not able to phone today or tomorrow, as we will not be home before 6pm. In the meantime, we hope to put something in writing over the weekend.

Thank you for the response, if it helps, please email it to the following ivatechnicalsupport@moneyplus.com with your reference number and one of our specialists will pick this up. If it helps please advise a suitable time and number (If different to one we hold) for us to call you to look at resolving the issues you have raised.

Regards

Gary