Every year payments have increased, my husbands basic wage has not increased

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avril
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by avril » Mon Sep 04, 2017 8:55 am
hi we have been on an iva for 6 years now and every year the payments have been increased although my husbands basic wage has not increased stayed the same in six years some overtime has been available but is not on a regular basis every year they work our money out using the higher wage slips supplied is this fair as we have not been able to meet the high payments and have asked to put the payments back to original amount in doing this they have said we are in arrears an keep extending the end date we have paid the asking amount over these 6 years and none of our debt has been written off,will this ever end
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kallis3
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by kallis3 » Mon Sep 04, 2017 9:12 am
Hi,

Which company are you with? Is it an IVA or a DMP?
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Foggy
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by Foggy » Mon Sep 04, 2017 9:15 am
On what you have said your provider is acting incorrectly. Payments should only increase where there has been an increase in income or a reduction in expenses. Payments should not include overtime and should be calculated using basic wage. Assuming you have the usual clauses your IP can make a reduction of up to 15% without asking creditors and this does not get tacked on as arrears unless you have a minimum dividend to reach (which is rare these days). If a reduction is more than 15% he can ask creditors to agree.

No debt will be written off until the end of the IVA, but you should not have to see the end point running off into the distance !

Might I ask who you are with ?
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Michael Peoples
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by Michael Peoples » Mon Sep 04, 2017 11:42 am
You should seek a full file review and a face to face meeting with your IP. As Foggy says it looks like the IP is taking the overtime when earned and then using the figure including overtime at the review stage. This is wrong in my opinion as effectively you are being hit twice.
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avril
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by avril » Tue Sep 05, 2017 6:58 am
kallis3 wrote:
Hi,

Which company are you with? Is it an IVA or a DMP?

hi its an iva and with ntf
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avril
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by avril » Tue Sep 05, 2017 7:02 am
Foggy wrote:
On what you have said your provider is acting incorrectly. Payments should only increase where there has been an increase in income or a reduction in expenses. Payments should not include overtime and should be calculated using basic wage. Assuming you have the usual clauses your IP can make a reduction of up to 15% without asking creditors and this does not get tacked on as arrears unless you have a minimum dividend to reach (which is rare these days). If a reduction is more than 15% he can ask creditors to agree.

No debt will be written off until the end of the IVA, but you should not have to see the end point running off into the distance !

Might I ask who you are with ?

hi its with ntf and every year when its reviewed my husbands rings them to ask why its gone up and they say with hold payment until sorted out then they say we are in arrears and keep extending the finish line we hav paid an extra year now they want to extend again in total we have paid the whole amount they wanted over five years leaving 3 thousand left of original debt
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kallis3
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by kallis3 » Tue Sep 05, 2017 8:25 am
I take it you have not made payments when told not to? Obviously this would send you into arrears but it is wrong of them to say that.
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Foggy
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by Foggy » Tue Sep 05, 2017 9:43 am
Yes, you would have to extend to cover the missed payments --- but they have never addressed the non-existent income increases !! Are they trying to hit you twice -- i.e they have increased payments to claw back those missed installments and are also adding them on at the end ?!
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kallis3
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by kallis3 » Tue Sep 05, 2017 11:35 am
Ask them to send you details of all of your payments so you can check them.
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