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Jessie91

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Post by Jessie91 » Thu May 13, 2021 11:53 am
To my previous post I can’t find as would of added on.
I had some circumstances of change in my iva being new job and pay really. I told Creditfix and they sent me new I&E form out I sent it all back with relevant documents asked for, I got a email today off them explaining my payments will be a little lower now by £17 per month but they have to do another variation meeting with my creditors to ask permission for this to lower it. Also said that if accepted the lower amount they will add on another 12 months on my iva. So instead of 5 years be 6 now? I don’t owe a home either I rent.
But then also stated if not accepted or agreed on they will issue a certificate of termination so that completely worried me if they cancel my iva as then my creditors do have the legal right to chase me as they feel fit for their money back doesn’t it?
Hopefully doesn’t come to this and everyone agrees.

nicola715

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Post by nicola715 » Thu May 13, 2021 1:16 pm
Don't worry yet about if it fails - it may all be ok!

17 lower a month and adding on an extra year is the bit I dont get. Payments in total would be surely much the same or slightly higher? I also was under the impression ur IP could vary the terms within a certain percentage, a drop of 17 doesnt seem that big to me! That said I am no expert - i am sure someone with much better knowledge than me will be able to help

I hope it all goes ok xx

Foggy

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Post by Foggy » Thu May 13, 2021 1:25 pm
The IP usually has the discretion to reduce the payment (based on the originally agreed amount) by up to 15% without reference to creditors, as long as the resulting payment is still enough to keep the IVA viable. Usual;ly such a reduction does not result in an extension, but CF might be pre-empting the creditors asking for one as a condition of acceptance .... bit of a carrot, rather than all stick !

Automatic termination if the offer is refused is a bit harsh --- have you told them that you cannot continue if the payment is not reduced ?
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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Jessie91

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Post by Jessie91 » Thu May 13, 2021 1:39 pm
I did think while reading the paperwork they emailed me over how is that fair to ask another year on top? My original payments were £92 and all paid to this month. Then I started a new job few weeks back and now reduced to £75 so £17 different but they have already changed the payment on their end I pay that new amount next month on the 6th? I don’t see how the extra year or the termination is very acceptable and they have written that in the paperwork to the creditors for the meeting in June. I did explain when they asked could I afford the payments I said yes I can as it’s been worked out for me but if it’s it terminated if creditors say no then of course I wouldn’t be able to live at all with them chasing me for over £18.000 debt. I did realise on the new I&E they have changed my food shop allowance to £200 from £500something also which doesn’t make sense either 🤔

Jessie91

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Post by Jessie91 » Thu May 13, 2021 1:43 pm
This is what it says on the resolutions box on the variation meeting paperwork:

1. The Supervisor be authorised to reduce monthly contributions from £92 to £75 and the term of the arrangement will be extended by 12 months, if monthly contributions do not recommence at the agreed level, the Supervisor may issue a Certificate of Termination.
2. The Supervisor be authorised to draw the sum of £300.00 in respect of convening the variation meeting

Foggy

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Post by Foggy » Thu May 13, 2021 2:34 pm
At that level of payment I can see why they have suggested extending, as around £80 is usually as low as they can go and be able to keep the arrangement running.

Bear in mind that, with that low a figure for disposable income, you could qualify for a DRO under the new provisions. See new-dro-provisions-t90657
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

Jessie91

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Post by Jessie91 » Thu May 13, 2021 3:27 pm
Oh okay makes sense then if they usually don’t go that low which I understand their actions now. I’m unsure what a DRO is? Is that bankruptcy or completely different

Foggy

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Post by Foggy » Thu May 13, 2021 3:46 pm
Thu May 13, 2021 3:27 pmJessie91 wrote:
Oh okay makes sense then if they usually don’t go that low which I understand their actions now. I’m unsure what a DRO is? Is that bankruptcy or completely different
DRO ( Debt Relief Order ) is sometimes called "Bankruptcy Lite". Basically, for a fee of £90 all qualifying debts are wiped after a year. There are no payments to make, but you will be supervised for the year and, if you win the lottery or something of that kind, during the year, you will be expected to pay your debts, at least in part.

More info here: https://www.gov.uk/government/publicati ... lief-order .. Remember the limits are increasing at the end of next month, as mentioned in the link I gave you before.
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

Jessie91

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Post by Jessie91 » Thu May 13, 2021 3:53 pm
That sounds more easier than the iva as now because of my lower repayments and another year added on I’m starting to worry I’ll never see the end.
Just confused how you can pay one payment of £90 to DRO and after a year there wiped without any extra payment to them needed monthly or at the end? Seems to good to be true.

Foggy

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Post by Foggy » Thu May 13, 2021 4:31 pm
Thu May 13, 2021 3:53 pmJessie91 wrote:
That sounds more easier than the iva as now because of my lower repayments and another year added on I’m starting to worry I’ll never see the end.
Just confused how you can pay one payment of £90 to DRO and after a year there wiped without any extra payment to them needed monthly or at the end? Seems to good to be true.
It is pretty good, but, as you can see, there are criteria to meet first. Like with the IVA, your credit score will be trashed for 6 years ( it is now, anyway), so there is a price, of sorts, to pay. CAB can talk you through it and put you in touch with an authorised intermediary. Certainly worth looking at.
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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