Can IVA payments be reduced? (Payplan IVA)

ld54336

Hiya, hoping for some advice

18months into a Payplan IVA. Been paying £290 per month.

Anyway, my husband has got a better, employee job ( was previously self employed, which was very unsteady & unreliable)

We calculated wages etc and realised that although he'll be earning approx £200 more each month- our tax credits award goes down about £285 per month (soo much for being rewarded for bettering yourself eh?)

Anyway, we were struggling a little before as our expenses have increased since last review (especially petrol!) but this is a major blow.

Can IVA payments be reduced? surely they can't expect people to have exactly the same circumstances for 5 solid years?
Really scared the IVA will now fail and we'll be forced to go bankrupt, the IVA was a major relief for us and happy to be sorting debts out.

Hope someone can help x

FoggyBrain_2

Hi. Generally ( and, as always, dependant upon the terms of your own proposal) an IP can reduce payments by up to 15% over the life of the IVA, if needed, without having to go back to the creditors fpr permission. If there is a great drop he will need to seek approval as the dividend might be reduced.

Whitetornado

Hi, my husband is in an IVA and when we were in year 2 we were struggling because of my slight drop in wages and the increase in the cost of living. we phoned Ip who went through a revised I & E with us and our payments were lowered from £275 per month to £100 per month but extended for an extra 12 months. we have found this so much more manageable. We now have just the final 12 months remaining to pay. Give your IP a ring and tell them your situation, ours was very understanding.

FoggyBrain_2

Hi Whitetornado -- It's refreshing to see an IP willing to use a bit of common sense to assist. Might I ask who it is ?