I have fallen in arrears with my IVA

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Julie.wh
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by Julie.wh » Mon Jul 31, 2017 9:26 am
I have fallen in arrears with my IVA as my circumstances changed but the IVA company just kept saying that I had to keep paying the set amount. In the end I just reduced the payments myself but I also missed some payments. The IVA should have finished but I still owe £4000. I am paying what I can at the moment but it is far less than was first agreed. I am due a pension pay out October next year. Will the creditors be able to access this?
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Foggy
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by Foggy » Mon Jul 31, 2017 9:39 am
If you are still in the IVA tyhen the pension payout might well be regarded as a windfall and payable into the IVA ---- however, they cannot take it out of your account themselves. I would imagine that your IVA is on thin ice and refusal to coi-operate over the pension payment could well be the final straw and see the arrangement fail --- you do seem to have a particularly unhelpful IP.

I would say, try to grit your teeth and get the IVA sorted and get the pension payout deferred until you have completed, at least.

Might I ask who you are with ?
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Michael Peoples
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by Michael Peoples » Mon Jul 31, 2017 10:05 am
I am unsure what has happened as the IP will have had to take steps to deal with the arrears. This means a variation will have been called extending the arrangement or reducing payments as otherwise the arrangement would be in breach now. You need to find out when your IVA is due to complete as a pension drawdown could still be deemed a windfall.
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MerlinL14
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by MerlinL14 » Mon Jul 31, 2017 10:35 am
First thing is don't panic. Your IP will not want your IVA to fail due to a misunderstanding. You need to request that you get to speak directly with your IP, this should not be rejected and you need to be firm, but polite, with whoever you speak to on the phone. This can be sorted and I am sure your IP isn't even aware of this issue yet.
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Lisa Thomas
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by Lisa Thomas » Mon Jul 31, 2017 11:07 am
What were the changes to your circumstances - I assume they were financial?

Why did the IVA company keep saying you had to pay the set amount if your Income & expenditure changed?

Usually the IP has discretion to reduce (up to 15%) or can call a meeting of creditors to propose a reduction.

This does not seem to have happened here so sounds strange that they are insisting the payments stay the same. What was their reasoning given please?

Have you notified them and kept all the communication about this in writing?
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