IVA changes to guidelines

pulman69

There was an excellent article in the Guardian on Saturday regarding new guidance issued by The Insolvency Service to insolvency firms who are now obliged to take soaring living costs into account if you are struggling with IVA payments.

Because many IVA agreements were drafted before the individual had knowledge of the current financial climate, rising inflation and increases in monthly outgoings the individual may struggle to maintain payments and can now seek a reduction in payments (without having to wait for the normal annual review).

In addition the article states in some cases the IVA company may also consider ending the IVA if payments drop below a certain level (over 50% of current contributions).

My advice is if anybody is struggling do not hesitate to make contact with your IVA company citing the current cost of living crisis and recent new guidance related to a request for reduction in monthly payments. 

fatbelly

See the article by Debt Camel

https://debtcamel.co.uk/help-ivas-cost-of-living/

Skyblue115

Thank you for this.  My Husband has just had his second annual review done, and they have increased it again by £60 per month. My Zero Hours contract does not guarantee an income, but they took my last three months figures, which were slightly higher.  My Husband advised with the cost of living this would be difficult to pay, but they have issued the report to the creditors.  Can anything be done at this point?  Thank you in advance.  

sourcrates

Skyblue115 said:

Thank you for this.  My Husband has just had his second annual review done, and they have increased it again by £60 per month. My Zero Hours contract does not guarantee an income, but they took my last three months figures, which were slightly higher.  My Husband advised with the cost of living this would be difficult to pay, but they have issued the report to the creditors.  Can anything be done at this point?  Thank you in advance.  

Of course it can, make a complaint, don`t just accept it.

If its not going to be affordable, tell them so, inform them you can`t pay any extra and ask them not to increase your payments, as it will put you in a position wear by you will not be able to afford to pay your essential bills, especially with the massive rise in the cost of living.