So the IVA payments

fazer73

I've been reading the forums about IVAs and it sounds like some people start on about £300 a month and then by the third year they are paying over £800 a month.

Can the IVA payments be increased by such a large amount for no reason or do they look at the income/outgoings and make a decision on the payment amount in the yearly review.

Also will the IP help to protect you against future demands (whilst in the IVA) from your creditors if they decided that you can afford to pay more but you cant ?

If the creditors get to the end of year one and demand more money each month but you can not afford it can the creditors terminate the IVA and push for BR or are they bound by it for the full five years unless you cant keep up the payments ?

One final question....

What happens if they do not accept your IVA, can they decided to go straight to BR or will they still be open to trying to find a solution ?

Charco_2

The IVA is about what you CAN afford.

It's not a case of "we want more so your contributions have to go up!" If you can afford £300 then that's what you'll pay, this will only go up (or down) if your circumstances change. If your girlfriend moved in with you and now paid half the bills or if you got a £500 a month pay rise at work (usually the IP will look for increased payments but not necessarily the full £500).

If your great aunt died and left you £25k in her will then obviously you'd be expected to bring this into your proposal (probably as a full and final settlement).

The IP is the buffer between you and your creditor and has to look after the interests of both parties, so they'll protect you to some extent from your creditors but they also have a duty to bring about a s good a return for the creditors as they can too - but it is all about affordability!

If the IVA is rejected, generally your IP will look to do a few changes to the proposal (probably that your creditors have suggested) and re-submit the agreement. Your IP should only have taken on the case on the grounds that they thought it had a good chance of success and that it was the best solution available for you. If it is rejected, usually the grounds for the rejection are mendable!
Dont think I've ever heard of someone being forced into BR in this way. An IVA will generate a better outcome so your creditors wont be looking for BR.