my iva keeps moving the goal posts

keeny1975

I've been on an iva for four years now and it's been fairly hassle free but. Latley it's been getting harder.

I started off paying £308 a month until 5 months ago when I was told to pay £408. Then 2 months ago I was asked to pay £599. Which is a big jump and I'm only just able to pay it. They then said that I should of been paying £599 at the time I was paying £408 and that my iva is now in areas And that i have to pay it. Problem is i can't afford too. If I did over time they take Half of it and the other half would be used to pay the arreas. So I would be doing over time and not seeing a penny of it.ive just had paperwork through and they are telling me to sign it and return it. it states that i will now be paying £599 but if i sign it i will be admitting i made the mistake by paying £408 so understandably i dont want to sign it. but if i dont my iva will fail.
I also have in writing that I have to remorteage my house and give them £20'000 but when I asked them how much I had to pay them they said there wasn't. Fixed figure it all depended on whAt I had in the property.

i thought i would end the iva early after seeing the toal i had to pay after the 5years is £36,210. the balance left after what i have already paid works up to about 18k. so i figured i would remorteage and finnish the iva. they said i couldnt do that as i would be making a debt to pay a debt. but surly i will be doing that after 5 years to give the iva there cut anyway.

and i thought a debt only becomes a deibt when you cant pay. so therefore my morteage isnt a debit as im up to date with it.

I just want to know where i stand and what I can do to stop them bullying me. I feel like they want me to fail my iva. Please help me all advice is welcome.

Thanks chris

p.s.
sorry for any spelling errors im doing this on my iphone and i dont have much time lol

Charco_2

Wouldn't be too hasty about trying to finish the IVA early, you're in the last year now and finish line is in sight...

A debt is anything you owe whether you can afford to repay or not.

Chances are your circumstances have changed since the start of your IVA four years ago so the equity you agreed to release back then bears no resemblance to the equity available to you now. Depending on how your IVA is worded, you will simply have to address the equity that IS (or isn't) available now OR you might have to ask your IP call a variation meeting to agree that you can't take blood from a stone so here's the new deal!

Basically:
- how much is your home worth now?
- how much is outstanding on your mortgage?
- other loans secured on the property?

Multiply the value of your home by 0.85 and take away the secured debts... this is the amount of equity yo should have to address now, the £20,000 you agreed four years ago is pie in the sky due to the global economic situation now.

As regards your other problem with the shifting goal posts... It is not unreasonable for you to be expected to repay as much as you can afford to for the duration of your IVA

HOWEVER, you shouldn't be punished for the negligence of your IP - they are being paid to supervise your case, not just make up figures! Why have the miscalculated twice? Where did all this extra money come from? You're saying you can just about afford the second increase, THEY'VE PRACTICALLY DOUBLED YOUR MONTHLY CONTRIBUTIONS!!!

You don't simply have to accept their calculations, post up your I&E here and we'll see if there are perhaps some allowances you are entitled to that haven't been included or other savings too.