Increased IVA payments

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alan690

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Post by alan690 » Thu Aug 12, 2021 6:39 pm
With an IVA, my creditors are giving me an annual assessment to determine how much I can afford to pay for the remainder of the year. Having filled out my expenses form and provided proof of ingoing/outgoing payments, my creditors have requested double of what I was paying last year for my IVA repayment plan.

Is there a way to challenge this payment plan or have the payments reduced? I was previously paying £130 a month and they are now requesting that I pay £250 a month, however my income has not improved and I was only able to pay £130 a month as I was able to work a lot of overtime last year which has since been stopped due to COVID causing production issues.

I am still willing to increase payments to say £180 a month, but would of course like to avoid that if possible as my circumstances have stayed relatively the same since last year.

Any advice is more than welcome, thankyou.

kallis3

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Post by kallis3 » Thu Aug 12, 2021 6:46 pm
Ask them to give you a breakdown of their figures to see how they have come to that conclusion. You can challenge them.
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Foggy

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Post by Foggy » Thu Aug 12, 2021 7:02 pm
As Kallis says, ask them for an explanation as to how they have arrived at this increase ---- I assume that, as you have been earning overtime, this has been accounted for, to your IP, as extra income under the terms of your IVA. It could be that the person conducting the review has, mistakenly, included the overtime figure in the basic income figure, upon which the IVA payment should be based.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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alan690

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Post by alan690 » Thu Aug 12, 2021 7:33 pm
Thankyou I will do so.

In regards to my income and the monthly repayments, I currently earn £333 to take home per week, I was paying a sum of £130 per month which they've now told me will go up to £250 as stated previously and I've spoken to Creditfix over the phone regarding this twice, however on both occasions they've told me the individual who came up with the new payment sum has been unavailable to talk to.

I'm struggling to see where they believe I can afford to fork out the extra £120 a month as I've no new or extra income, I've had to sell my car due to the running costs being too high and I'm now in a position where if I were to pay the new sum, I'd be left with nothing extra should anything arise that I need to pay for in day to day living.

The new payment figure would leave me unable to save anything or unplanned expenditure. I've read online that I can request to have my IVA dropped by 15% without too much hassle, could you tell me if this is the case or if I'm mis-informed.

Again thankyou so much for the help, this is exactly the sort of info I was hoping to find. Thankyou.

kallis3

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Post by kallis3 » Thu Aug 12, 2021 7:44 pm
Yes you can ask for it to be reduced by up to 15% without resorting to a creditors meeting so it's another avenue you could explore.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
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alan690

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Post by alan690 » Thu Aug 12, 2021 7:49 pm
Would that be total IVA to be reduced or the new payment which we are to agree on?

Foggy

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Post by Foggy » Thu Aug 12, 2021 7:51 pm
The ultimate responsibility for this rests with the IP named in your proposal. Forget whoever worked this out being unavailable -- write a formal complaint, direct to your IP, which you can escalate to their regulatory body, via the Government Gateway here: https://www.gov.uk/complain-about-insol ... actitioner . Often the threat of a complaint here focuses their attention.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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Foggy

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Post by Foggy » Thu Aug 12, 2021 7:53 pm
Thu Aug 12, 2021 7:49 pmalan690 wrote:
Would that be total IVA to be reduced or the new payment which we are to agree on?
IPs usually have the discretion to reduce monthly payments by up to 15%, based on the originally agreed payment amount, without reference to creditors, assuming you have the usual clauses in your agreement.
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

alan690

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Post by alan690 » Thu Aug 12, 2021 8:13 pm
I'm going to follow this up with them, I'd appreciate a plan of action of some sort if you could suggest one?

I'll ring Creditfix again tomorrow morning and ask for a breakdown of their new payment plan and how they've come to their conclusion, if they wont budge on the new budget, then I'll request the 15% break down and then go about filing a complaint.

Can I ask if there are grounds on which I need to file said complaint?

Foggy

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Post by Foggy » Fri Aug 13, 2021 9:10 am
You have ample grounds for a complaint in that they have made a b*lls up of your I&E and have fielded several requests for an explanation. So, in terms more acceptable: They have made a gross error, in your opinion, and refuse to engage in sorting the matter out.

One thought that has just come to mind -- apologies for the delay in processing -- On re-reading I see that you have sold your car. This might account for some of the increase as your expenses will have decreased (Road tax / Insurance / fuel and maintenance), although public transfer fares will also have increased.
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

bowline

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Post by bowline » Fri Aug 13, 2021 3:20 pm
Thu Aug 12, 2021 8:13 pmalan690 wrote:
I'd appreciate a plan of action of some sort if you could suggest one?

I'll ring Creditfix again tomorrow morning and ask for a breakdown of their new payment plan and how they've come to their conclusion, if they wont budge on the new budget, then I'll request the 15% break down and then go about filing a complaint.

Can I ask if there are grounds on which I need to file said complaint?
I think your plan should be to dispute the I&E they have drawn up for you now.

Don't muddle this up with saying you could accept more but not that much, or asking for 1 15% reduction. Stick to what has changed from your I&E last year, emphasize that the extra income last year was overtime that is no longer available.

You can complain about anything you want, there is no specific list of valid reasons to complain.
But in your case you have told them that their new formulation of your I&E is not right and asked them to explain this and so far you have not been given anything.

SteveUK

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Post by SteveUK » Tue Aug 17, 2021 12:39 pm
If last year was your first year in an IVA the original I&E figure was probably 'padded' to make the IVA look more attractive. I know ours was and went up dramatically the second year onwards. With an income of £1443 how much are your monthly expenses?

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Post by SteveUK » Tue Aug 17, 2021 12:43 pm
Thu Aug 12, 2021 7:33 pmalan690 wrote:
The new payment figure would leave me unable to save anything or unplanned expenditure.
You need to realise that this is how it is supposed to be. If you have unplanned extra expenses you have to go cap in hand to the IP and ask for a payment break.
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