Do interest rate rises affect IVAs?

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Stephen Hitchens

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Post by Stephen Hitchens » Fri Jan 12, 2007 11:18 am
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HI

I'm just waiting to see if my IVA will be approved. Would like to know will the increase in the interest rates affect my IVA? (just read about it here http://www.iva.co.uk/forum/topic.asp?TOPIC_ID=713)sorry if its a Stupid question

PS Please feel free to post comments on my blog (http://my-iva.blogspot.com)!!
PS Please feel free to post comments on my blog (http://my-iva.blogspot.com)!!
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scooby

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Post by scooby » Fri Jan 12, 2007 11:26 am
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Probably only if you have a ortgage and yor mortgage rate goes up

Scooby
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Oliver

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Post by Oliver » Fri Jan 12, 2007 11:35 am
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I would agree with Scooby that the latest Bank of England Interest increase will only have an affect on someone in or applying for an IVA if there mortgage payments are to increase.



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Oliver

Thomas Charles Ltd, A medium sized debt solutions provider based in London.
Read customer feedback at: www.thomascharles.com/about_us.asp
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Oliver
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DebtDummy

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Post by DebtDummy » Fri Jan 12, 2007 12:14 pm
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My mortgage payments will increase. I have the draft proposal for correction. I shall make the addition. My question is,will this decrease
the IVA monthly payment by that amount? Should I compensate in another area/s by decreasing that amount?

Thank you all very much.
All I have left is my humour. :)

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Oliver

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Post by Oliver » Fri Jan 12, 2007 12:23 pm
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Talk to your IP about this. It is most likely that you will increase the budget for your mortgage payments which will in turn decrease your dispodable income payments to your creditors. You shouldn't really be trying to offset this increase by reducing your other budgets like housekeeping, travel etc... as these should already be set at the reasonable amount that you need to spend each month.

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Oliver

Thomas Charles Ltd, A medium sized debt solutions provider based in London.
Read customer feedback at: www.thomascharles.com/about_us.asp
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Oliver
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MelanieGiles

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Post by MelanieGiles » Fri Jan 12, 2007 5:42 pm
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Hi Stephen

Your IP should adjust your monthly contribution to allow for the additional mortgage interest. Whilst this may take an extra couple of days to finalise the proposal, it is worth it in the long run.

Good luck with the creditors meeting.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk
Regards, Melanie Giles, Insolvency Practitioner
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