Have Creditfix increased my IVA payments correctly?

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jamie452

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Post by jamie452 » Fri Jan 24, 2020 9:36 am
I am currently with Creditfix and have just had my annual review I sent in 3 bank statements, 3 wage slips and an income and expenditure form. Payments were set at £115 but I had a promotion which came with a £4k pay uplift annually which I made them aware of, they at first said I could afford £315 a month which I said don't I get to keep 50% of the pay increase which would make my payments £215 a month. I then also sent figures that at £315 a month over the rest of the 50 months would be £7k over my debt level, in which the advisor said he would pass this onto another team to reduce the length of the IVA, they then came back and agreed that my payments should be £215 and my IVA would remain 5 years in length, does this sound strange or?

Lisa Thomas

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Post by Lisa Thomas » Fri Jan 24, 2020 9:47 am
If the promotion is permanent the I suspect the 10/50/50 rule will not apply - this tends to apply to overtime and bonuses only.

What is the net increase in your income with the new wage?
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk

Foggy

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Post by Foggy » Fri Jan 24, 2020 10:59 am
Although they are somewhat lax with calcultions ( they DO have to be watched) they are correct in increasing the monthly payment by 50% of the increase in net income. To comment on the actual figures we would need to know what your increase was in take home.

Say you were actually taking home £300 extra per month and all expenses have stayed pretty much the same --- then this would result in an increase of £150 and, so, a new monthly payment to the IVA of £265. So, I am at a loss as to where either the £315 CF wanted or the £215 you beat them down to has come from .
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

Jessie91

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Post by Jessie91 » Fri Jan 24, 2020 11:02 am
Hi, with your annual review did you do it through online or sending through emails and post? Thank you

jamie452

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Post by jamie452 » Fri Jan 24, 2020 11:18 am
so basically my annual wage went from 20k to 24k so monthly it went from 1400 to 1609 so an increase of 200 which should make payments go up 100 which I what I replied when they said about raising from 115 to 315. I said well ive made 9 payments of 115 which + 1035, 50 payments of 315 = 15750 so altogether that would = 16885 which is 5 grand over my initial 11k debt level. I stated this and one colleague said they wil pass it to another team to bring the length of the iva down, then I got an email saying my contributions are changing I replied and asked what the changes were, then they came back saying its going to 215 and the length of iva is staying to 5 years.

Foggy

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Post by Foggy » Fri Jan 24, 2020 11:45 am
Fri Jan 24, 2020 11:18 amjamie452 wrote:
so basically my annual wage went from 20k to 24k so monthly it went from 1400 to 1609 so an increase of 200 which should make payments go up 100 which I what I replied when they said about raising from 115 to 315. I said well ive made 9 payments of 115 which + 1035, 50 payments of 315 = 15750 so altogether that would = 16885 which is 5 grand over my initial 11k debt level. I stated this and one colleague said they wil pass it to another team to bring the length of the iva down, then I got an email saying my contributions are changing I replied and asked what the changes were, then they came back saying its going to 215 and the length of iva is staying to 5 years.
Thank you --- OK - on that increase, yes, the increase to £215 is correct. As for your arguement regarding paying over the original debt -- this won't wash and CF's initial reaction was incorrect -- the IVA would not have ended early until such time as you pay in the full original debt, plus fees and possible statutory interest, which you owe in full until the bitter end. Only at the agreed end point is anything unpaid written off.

On an £11k debt that figure would roughly be £17500. By the end you will have paid just short of £12k, assuming no further pay rises, so no early bath !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

Lisa Thomas

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Post by Lisa Thomas » Fri Jan 24, 2020 11:47 am
The increase sounds correct to me, assuming the new income is permanent.
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk
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