09 Mar 2015

A question about : Change in circumstances

My wife & I have been in an IVA since Sept 2011 and began paying Ј595 pcm. After about 12 months my wife was promoted and her salary increased and as a result payments went up to Ј765 pcm. This year I was made redundant and although my IP is saying payments can reduce to Ј465 pcm they will have to increase the time span by 1 year to compensate. Is this usual as it seems a little unfair as the time span didn't reduce when we were paying the extra Ј170 pcm. We have also just added over Ј19,000 to the pot from PPI claims. I have managed to find some part time work and wandered what would happen if I get a full time job, ie will the time span go down again?

Best answers:

  • Hello Dave, as I understand it your IVA agreement would have been to repay Ј35700, your wife managed to have a salary increase thus passing over more funds. I think these additional funds would have been classed as additional funds above the original agreement as is the PPI and any overtime/windfall. I hope this makes sense but this is how I understand it. Therefore your reduction in repayment will mean an extension to the original agreement. Best of luck.
  • Hi Dave, I think if you were to find employment, you would be able to make up the shortfall in repayments and bring the end date back to the original completion date.