IVA Troubles

thejames

Hi

After a bit of advice if possible.

My wife and I entered into an IVA with PayPlan in April of this year. Are payments are set to be £750.00 a month. However, we are really struggling every month and the last week or so before my payday is a real struggle.

We have tried our best to cut down food and petrol costs but we feel we have got them down as much as we can but are still scraping the barrel at the end of the month.

I am thinking of contacting Payplan in order to try and reduce our monthly payment. Has anyone had any success with this and are there any consequences for doing so??

We also want to start sending our 2 year old to nursery, only 2 half days a week and this is obviously not in our budget yet. From looking around, this is going to cost an additional £200. So this money needs to be found from somewhere!! Are nursery fee's something they will take into account??

Thanks in advance

Anondebtadvisor

I am sure that Payplan would allow nursery fees as an expenditure, it is a perfectly reasonable request.

Payplan should have the ability to reduce your payment levels by upto 15% so by £112.50 without the need for a variation meeting, any more than 15% they may need to call a variation

FiatFan_2

Well worth asking, we have £243 pcm childcare for our 2yr old built into our budget so they should allow for yours. As Anondebtadvisor says above, any more than £112.50 variation and PP will need a variation meeting, advantage of this is all your I&E could possibly be recalculated for better.

milliemonster

They won't just reduce your payments without justification, if your I&E accurately reflects your current costs and it's just that you are finding it difficult to stick to the budget then they won't reduce your payments, however, have a look back at the last couple of months carefully to see what you have spent and where and match it up with your I&E, are there expenses you have which have not been accounted for? if so you will need to provide receipts for payplan to adjust your I&E accordingly.

Regarding nursery, of course this is a legitimate expense that can be accounted for but it looks like you will need to have a variation meeting to get creditors permission to reduce your IVA payments by that level to accommodate the new expenditure, have a chat with Payplan about it, it shouldn't be an issue.

debtinfo

completely agree with MM above, the first thing is to see where you are spending money above your budget and why. If it is something that can be avoided you need to work on that, if it is simply something that cant be avoided than that is your information to approach your IP with

thejames

Many thanks for your replies.

I contacted Payplan today to enquire about the above but was told that there was no room to make any adjustments at all. I explained to them that after going through our budgets since we started the IVA, according to the budget planner agreed we only have £685 to pay them, but in actual fact we only have £646 that we can realistically afford to pay them. (Our IVA is set at £750). Adding to that, the potential nursery fees, that would take the realistic payment to £400. Payplan did say we good go to them with our new figures to request a variation meeting, but there is a chance that they may reject it and if they did agree to it, we would be looking at another 1 or 2 years extension to make up the shortfall. 5 years is long enough, really don't want another two years potentially stuck on the end of it!!

debtinfo

why dont you put up a list of the original budget in the IVA paperwork and a list of what you are spending now

milliemonster

debtinfo's advice is good, post up a copy of your original I&E and what it is now and we can advise, payplan are correct in a sense that the minimum dividend your IVA was agreed on was based on realising £750 a month over the 5 years? if your circumstances have changed and you can now only offer less then a variation will need to be called if you will only have £400 a month DI and the creditors may request an extension to agree to this.