Is it right that as payments are decreased, my term may be extended ?

Get expert opinion. This is the place for new questions to be posted.
3 posts Page 1 of 1
User avatar
Posts: 15
by Kerry.r » Sun Apr 02, 2017 4:30 pm
Hi guys,

My IVA has been ticking along without problems, but I've just had a big drop in Income. I'm with Stepchange and going through a variation, my advisor warned me as my proposal decreases the payments they may request the term is extended by 12 months. Is this right? I will check the small print, but thought I'd check with the experts! Thank you :-)
User avatar
Forum Expert
Posts: 24448
by Foggy » Sun Apr 02, 2017 5:15 pm
This is a possibility if the projected dividend drops too much. When you propose a variation the creditors are always at liberty to come back with counter proposals as you have effectively re-opened negotiations.
User avatar
Michael Peoples
Industry Expert
Posts: 15189
by Michael Peoples » Mon Apr 03, 2017 8:40 am
If the reduction was for 15% or less or brought the payments down to their original level then a variation would not be needed. However this must noit be the case so an extension is likely if creditors accept the reduction.
3 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”

Who is online

Users browsing this forum: No registered users and 4 guests