Hi we have been in a iva for fourteen months,when we first started the iva we were paying £170 a month after the interest rates fell because of our mortgage our payments increased to £350.Our daughter has just moved out and her contributions have now stopped we phoned up our iva company to tell them that we are now less £120 a month on our income and they told us we need to do a new I&E and then they will have a creditors meeting to see if a reduced payment will be excepted we then asked what would happen if it wasnt accepted and they couldnt answer the question.Has this happened to anyone else and what was the outcome.Any advice would be much appreciated.Thanks
Hi we requested that our creditors accepted less after the second year as the monthly payment was far too much and we had ended up with arrears due to car maintenance and reduced wages. Our creditors agreed to the new amount but the IVA was extended for an additional 12 months which was a shock as we weren't aware back then that this was possible. It's really important that the offer you make is one that you can live with long term and if they extend it then that's life. Good Luck
I don't see why they need to hold a creditors meeting - as you will still be able to maintain contractual repayments. If your daughter has moved out, are there not savings in expenditure to be made to counter the lost income?
Hi Melanie, Thanks for your reply what do you mean by contratual payments is that the original ammount £170 before interest rate drop.I cant see where we can make the saving of £120 unless it would be on food is this what you mean? Thankyou.
Your IVA contractual payments are £170. The increased payment you were asked to pay was £350, and you have recently suffered a reduction of £120 - which still leaves you able to make payments of £230 I assume.
I therefore do not see the need for a variation of terms, unless your IVA proposal specifically provides for this.