My IP is applying for a variation

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paul342

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Post by paul342 » Thu Aug 12, 2021 6:38 pm
My IP is applying for a variation with an 18 month extension, if it fails where does that leave me. Also I’m self employed and make tax went into the IVA where does it leave me with HRMC.

Foggy

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Post by Foggy » Thu Aug 12, 2021 6:52 pm
Why is he going for an extension ? If the current payments are unaffordable and creditors won't accept lower payments or an extension the IVA will fail and you will be back to square one. Debts will become enforceable again and you will need to seek an alternative debt solution.
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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paul342

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Post by paul342 » Thu Aug 12, 2021 7:02 pm
It’s complicated, I entered in August 2020 paying £120 a month. 3 months later due to COVID they did a review to see if I could afford it. I’m self employed and they made a complete mess of the review and increased my payment to £205, using figures that I’ve only just found out do not reflect my income. I’ve submitted my documents for my yearly review but they are using the £205 as my payment figure. When I questioned this and said I couldn’t afford it they’ve now reduced it to £89 even though my documentation still shows I can afford £120 and said because it’s now going to be £89 they need the variation.

Foggy

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Post by Foggy » Thu Aug 12, 2021 7:11 pm
Assuming you have the usual clauses your IVA should give the IP the discretion to reduce payments by up to 15% without reference to creditors ---- now, this 15% is based on the initial agreed payment level. So, in your case, he / she should be able to reduce the payment to £102 without consulting creditors and without extensions.

Even a reduction to £89 just needs the agreement of creditors --- who might tack on an extension as a condition of accepting the reduction --- it is not your IP's place to introduce arbitrary extensions at the outset.

Considering that this whole situation is down to their mess up I would suggest a formal complaint, direct to your IP, which you can escalate to their regulatory body, via the Government Gateway, if no joy. Often the threat of escalation focuses their minds.
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

paul342

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Post by paul342 » Thu Aug 12, 2021 7:33 pm
Thanks for your help foggy. Just one other point I’m using Creditfix and it appears they are outsourcing to Mauritius, they are obviously reading from a computer screen and didn’t even understand what self employed meant.

paul342

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Post by paul342 » Thu Aug 12, 2021 7:49 pm
Sorry to be a pain but, when I started my IVA should they have sent me a copy of my income and expenditure figures they used to arrive at £120 to get it accepted and more importantly before I confront them should they have sent the figures to me before they revised the figure in November. Thanks

Foggy

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Post by Foggy » Thu Aug 12, 2021 7:55 pm
Ebenegate is based in Mauritius and, like you, I do not believe they actually understand what they are dealing with, but, they are merely paper shufflers and the buck stops with your named IP.

You should have had a written record of agreed income and expenditure before the initial creditors meeting.
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

paul342

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Post by paul342 » Thu Aug 12, 2021 8:01 pm
Thanks

bowline

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Post by bowline » Fri Aug 13, 2021 3:31 pm
Do you have a house or are you renting? Do you own a car?
Because on those figures you may be eligible for a debt relief order where the rules have recently changed. If you don't own a house or car, talk to Business Debtline who specialize in the self-employed and who can look at whether a dro would be a better thing for you to switch to. In a dro you don't have to make any monthly payments at all.

paul342

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Post by paul342 » Fri Aug 13, 2021 4:25 pm
No I don’t own a house or a car, renting privately and drive a taxi which is rented as well. Thanks for the advice

Foggy

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Post by Foggy » Fri Aug 13, 2021 4:47 pm
Fri Aug 13, 2021 3:31 pmbowline wrote:
Do you have a house or are you renting? Do you own a car?
Because on those figures you may be eligible for a debt relief order where the rules have recently changed. If you don't own a house or car, talk to Business Debtline who specialize in the self-employed and who can look at whether a dro would be a better thing for you to switch to. In a dro you don't have to make any monthly payments at all.
Paul has stated that, by his own calculations, he can afford the original £120 a month, which would preclude a DRO.
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 » Sun Aug 15, 2021 9:57 am
Fri Aug 13, 2021 4:47 pmFoggy wrote:
Paul has stated that, by his own calculations, he can afford the original £120 a month, which would preclude a DRO.
It sounds a bit muddy though to me. Why are they now proposing £89? If that is right, then he is very close to the new DRO £75 amount. As Paul says, they may not really understand budgets for the self-employed. Def worth a call to Business Debtline.

kallis3

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Post by kallis3 » Sun Aug 15, 2021 10:13 am
Even at £89 he is still over the DRO limit.
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.
Bob Marley.
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Foggy

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Post by Foggy » Sun Aug 15, 2021 11:00 am
I agree, Bowline, it is always worth a chat for advice, but, by no means, a certainty. ---- but to step away from Ebenegate, if nothing else, it is worth the phone call.
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
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