Year 4 end.

mother_hen_2

May I ask a question -
In the beginning of the IVA a monthly figure is accepted - say £400 - several years into the process due to rising cost of running a home that monthly figure is agreed at yearly review and reduced to say £350 therefore, in theory each month £50 less is paid than originally agreed.
As the original figure has been short by £50 each month can they automatically use the 'option' to extend to recover this shortfall?

The only option for extending the IVA into year 6, as far as we can see (in our contract), is if we have equity in the property that cannot be released by re-mortgage.
Thankyou

UpToMyNeckInIt

I think the best advice is to re-read your IVA contract carefully, and then run this question past your IP.

I believe a lot of IVA contracts allow the IP to vary your payments downwards by up to 15% without the need to call a variation meeting with your creditors.

Additionally and dependant upon your contract wording, your IP may recoup this 'underpayment' for want of a better word, at a later stage eg: by adding a few more payments to your original term.

Good luck.

mother_hen_2

Thankyou for replying