IVA Advice Needed

darloboy_2

Hi All

Quick post on behalf of a friend...

My friend is 1 year into her IVA (through a private company sadly), to which she was paying £400 per month.

Due to a change in curcumstances, she can only afford £250 per month, just to be in a breakeven situation. She has contacted IVA company and they have accepted this but have amended her IVA term to 7 years.

They have not asked her to sign any amendment paperwork, and I was not aware the terms of an IVA could be amended so easily during the life of it, so am a bit concerned, as she also is. She has asked for some copy paperwork but they have so far not been forthcoming - all they have sent is a direct debit amendment form!!

Does anybody have any thoughts as to how legitimate (this may not be the correct term?) such an amendment is? I did not think an IVA could go for 7 years (as she has been on it for 1 year already it will now turn into an 8 year IVA).

Thanks in advance
Craig

catewithers

I would get her to call CCCS or Payplan immediately and speak to them about how they can help her. I assume she's paying this company for the service they're providing and that's just not necessary.

I'm not sure, but I don't think an IVA can be just amended like that. I would think it would have to be entirely renegotiated, but I'm sure others would know more than me. But I'd be concerned too and I think she would be wise to seek impartial advice from CCCS or Payplan. They have nothing to gain by helping her, unlike the company she's with, and so have no other interests to serve by giving her incorrect advice.

CLAPTON

just to be clear ALL IVAs have to be paid for. Whilst its true that CCCS and Payplan do DMS without additional charge, IVAs are always charged for.
In any event the IPs fees are part of the monthly charge and it can't be changed now.

IVAs can be extended passed 5 years.
I would think the maths was somethinglike this

due at 400 per month for a further 4 years = £19,200

if she can now only pay 250 then 250 * 7 * 12 = 21,000
more but not massively so

darloboy_2

Thanks for the replies.

I don't think she has a major issue with the maths, she is worried that she has signed nothing, and is therefore wondering if all is above board with this company. For them to increase the payment length but not have new documentation drafted is strange. Also they did it instantly over the phone without any consultation with creditors, which again struck me as being a little unusual.

I think she just feels deflated by the whole thing; she knows she has done wrong (she incurred £35k of debt), chose to go the IVA route rather than bankruptcy (she has no assets so bankruptcy would have been the easier option), but now feels like she has been kicked in the teeth somewhat.

As a footnote, the fee her IVA company are charging was £9k - I wonder if that has now increased by the circa £1.8k in aditional payments. Hardly in the best interests of my friend really!!!

CLAPTON

what does the IVA documentation say...does it cover this situation. its fairly usual to extend an IVA if there is a payment problem although 2 extra years is perhaps unusual.

although i understand her wish for some documentation (subject to what her current agreement says) I dont really understand why she feels kicked in the teeth.

she still has the option of declaring bankruptcy if she feels that this is more appropriate for her situation.