Hi , I am 5 and 1/2 years into an iva and I have problems with my Iva provider. My payments increased a lot. Before I went into my fith year I had to see if could get any equity out of my home which I could not. I received a letter telling payment would be so much for the next 12 months but 2 months later I received an email just before payment was about to be taken saying it it was nearly 3 times the amount stated in letter. I cancelled my direct debit and I pay by phone every month the amount stated first, I heard nothing from them, should I be worried ??
You should get to the bottom of this ---- they could fail the IVA or demand what they consider to be arrears in a lump sum at the end. You need to get them to explain why they claimed this amount ( might have just been a clerical error) and show their calculations. Has your income significantly increased or expenses decreased? The equity release payments should be based on disposable income in the same way as all other payments --- they cannot increase them on a whim.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Visit my blog here : http://foggy.blogs.iva.co.uk/
I am with Payplan and about 2 years into the IVA I had a modification agreed at a variation meeting, all to do with the fact that due to a change in circumstances, they’d get no equity from my house. This was agreed on the proviso that I’d pay a set amount wothin the last year. I totally forgot this when it came to the last year and even though my I & E stated how much I should be able to afford, I had signed I’d pay the agreed amount years ago when I was a bit more flush! That made no difference and it was a contract so it was pay or fail! I paid just to get rid of the thing. Check if you had signed any agreements in lieu of equity etc