IVA held, need to reduce outgoings further

smartiedriver_2

I had an IVA agreed 3 1/2 years ago and have 15 months to go.

The problem is, I have not had a payrise for three years (and incidentally, I am a banker, so we're not all on massive payrises and bonuses!) and the cost of living is increasing dramatically.

I have a company car, so business mileage is considered to be covered, but actually the 12p/mile we are given does not cover the actual cost of running the car. I also can no longer afford to put fuel in for personal journeys. I am considering biodiesel but am concerned about breaching the fleet contract.

I have asked if there is any possibilty of having a more economical car, but the company contract with the dealership does not permit it.

Additionally, food is costing more and more each week, and whilst I plan and write a list, which I stick to rigourously, the simple fact is the costs are rising more than I can afford.

Can anyone suggest anything, please?

FoggyBrain_2

Hi -- First port of call will be to discuss this with your IP and carry out a fresh I & E. I am sure they are all well aware of the rise in fuel, VAT and the knock ons, and, usually, have discretion to reduce payments by up to 15% without going back to the creditors for a variation (subject, of course, to whatever it might say on this subject in your proposal and report.

althas

I agree, a chat with your IP would be the best way forward

smartiedriver_2

Thanks! Would this extend the term of the IVA, do you know?

timberflake

smartiedriver wrote: »

Thanks! Would this extend the term of the IVA, do you know?

No, if you fill in a new I&E and the IP/creditors accept a reduced payment, it wont extend the term.

foreverautumn

Your IP has the power to reduce your payments upto 15%. Without having to go back to your creditors, for a variation.