Too late to adjust IVA budget and repayment figure?

My wife and I recently set up an IVA through Payplan for a debt of around £15k. After several phone conversations and paperwork from the early steps of setting up the IVA we received the budget planner. Several figures from this were inaccurate. They had our council tax as £40 less than we actually pay, the mobile phone was £15 between the two of us when its closer to £23, they also hadn't included the bill for my sons nursery which is around £30 per month. They also had a contingency figure of £10 a month which did seem very low and not much of a comfort if we do have a crisis as a taxi to A&E would cost us more than this! The other expenditure figures appeared to have been plucked out of the air to leave the surplus income at exactly £100 for my wife and £80 for myself.

My wife adjusted the figures and we signed the forms and sent them back as we were eager to get the IVA set up and payplan were phoning both of us most days, often several times. Since then the IVA has been approved and the first payments have been made. Neither of us have sent back any of the forms from "Step 5" yet which had details of the creditors meeting. We have not signed anything since sending back the budget forms with our scribbles on them.

My question is is it too late for us to amend these figures now to lower our repayment figure? We are on a low income and the extra expenditure that they have not accounted for will leave us getting back into debt whilst paying off the IVA.

Many thanks for reading and if I have missed anything vital let me know and I'll post it here.



  • Sluggy
    We started a IVA with PayPlan in September this year and they did exactly the same with us. I think if you say you can afford to pay £180 a month, then Payplan move the figures around to fit inside of the Guidelines. They may have omitted or reduced in some areas but put back in 'other' expenses which like you say "are plucked out of thin air". All this does is balance the books to bring you to the £180 payment you said you could make.

    In answer to your question, Once the creditors meeting has taken place it is my understanding that PayPlan can reduce your payments by up to 10% without going back to the creditors. I think this can be reviewed at any time, but seeing as your agreement has only just started I would have to question why you have been left so short of cash. Our plan has quite a lot of flexibility built in. If we budget correctly we can save a small amount each month.

    If they genuinely have reduced your amounts without putting anything back in, then I think you should talk to them sooner rather than later.

    Hope this helps.
  • milliemonster
    It's 15% actually, what concerns me though is that you sent your proposal back to payplan with adjusted figures yet they ignored these and put forward a proposal based on the original figures they sent to you is that correct?

    Really you shouldn't have signed a proposal you weren't happy with as it's not a good start to an IVA if you are finding things a stretch already because of dodgy figures and believe you are going to get into debt from day 1. Life in an IVA isn't a bed of roses but it certainly shouldn't be like a prison sentence!

    Payplan may be reluctant to address this so early on in your IVA but you can at least but try. When we got our original proposal (we're not with payplan) we changed the figures and sent the proposal back unsigned for it to be redone, we had to do this a couple of times until we were happy with it and only then did we sign, we are now 2 years in and everything is manageable and fine.

    All I can suggest is that you call them and ask them for a review of your I&E as it's not reflective of your bills.
    Aug GC £63.23/£200, Total Savings £0
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