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

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Kerry.r
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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 :-)
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Foggy
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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.
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Michael Peoples
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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.
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