www.iva.co.uk

I entered into an IVA 3 years ago and have maintained payments everymonth. The management of my IVA has swopped companies on instruction from the courts. My new management company are saying that when my salary reduces in April next year by 5000 that they can not reassess my finances and propose to my creditors that I pay a reduced fee. The only way they are saying my creditors will accept this is if I extend my IVA to a total of 7 years. When I took out the IVA I was told if my salary went up I'd pay more to my creditors and vice versa if my salary went down I would pay less. Its about 60 manageable and affordable payment is what I was told. But i'm being advised differently. Can you point me in the right direction

Hey natalie, welcome to the forum. It's really up to your creditors if they will accept not your IP and with such a drop in salary I would expect a variation meeting be called. I don't know about it being extended for seven years but if you hang on, I'm sure one of the IPs that post on here can advise you. X

Hi
Vicki.W is correct,your new IP must put forward a variation,However if your Chairmans report states that you must return a certain dividend or the IVA will fail then this may be grounds to increase the term of your IVA.
Go back to your IP,and be sure that you are actually speaking with the IP,and question the answer that you have been given.
Regards

It does seem a little bit unfair to want to extend for a further two years, as if 5 years isnt enough. Is it your fault that youre taking a drop in salary or is it imposed??

Don't forget that you provide the instructions to your IP if you want to try for a variation and not vice versa. The IP may not put their recommendation behind your offer, but they cannot refuse to put it forward for you.