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RegularAtomic
Just Joined

1 Posts

Posted - 02 Dec 2019 :  19:45:57  Show Profile  Reply with Quote
Hi,

I've had my yearly review and budget expenditure - my payment has decreased but not as much as expected and I'm wondering if there's a limit set on what the monthly can be reduced by? I can't see anything in my agreement.

My expenditures have increased on 2 areas - gas increase of 88 and school dinners of 68 (losing free meals for both kids due their year of class), there's also my pension which as of April this year increased from 2% to 5%, resulting in 65 less net wage (my iva class this within the budget as deduction from source).

Since starting my iva (this should be my final review) I've always had increased monthly payments each year due to wage increases - which is fair and I've never questioned it.

Yet with my expenditure increase for this coming year and no increase with incomings I was expecting a larger decrease of 65 - this barely covers the loss of my net wage due to the increase in pension took out my wage, which happened to everyone within a private pension.

The calculation of getting to my monthly payment is fairly simple and with my new budget I worked out the payment being 190 less - I assumed the IVA wouldn't like reducing it by this much so wasn't expecting it, but 65 less I just can't work out? Is there a limit?

It seems they'll happily increase monthly payment when they notice a wage increase - again I agree with it and no argument from me - but it doesn't seem to decrease in line with a bigger expenditure.

Any ideas? Can I question them on it?




LynnTaylor
Just Joined

1 Posts

Posted - 03 Dec 2019 :  12:09:15  Show Profile  Reply with Quote
Hi

There is no limit on the increase/decrease of contributions that a Supervisor may request following an income & expenditure review. However, any change in payment amount must always be based, and take into account the individuals circumstances and the affordability of that payment. Just a couple of questions;

1. Did you provide to your supervisor documents which supported the increase in your gas (latest bill) and the % increase in your pension payment (letter from Employer).
2 Do you have anything that confirms the withdrawal of free lunches for your children and was this also provided to your Supervisor?

If you didn't provide the supporting documents, get them sent over to your Supervisor ASAP and speak or write to them, outlining why the current reduction is going to still prove difficult for you to maintain until the end of your IVA. You should argue for a further reduction - don't be shy to name the reduction you feel would better suit your needs. Your income & expenditure review clearly showed a downward change in your circumstances and the change in your pay (due to the pension increase) and other expenditure increases can be demonstrated by the supporting documents you provide but also by the Supervisor reviewing the bank statement transactions.

The whole point of an IVA is to allow an individual to make a monthly affordable payment over a set period of months, the annual review provides the Supervisor the opportunity to ensure that affordable payment is still achievable. Where a review shows that the available surplus has risen then they can ask for the payment to be increased, likewise where the surplus has decreased the Supervisor can agree to reduce the payment. The key thing about the payment is it has to be affordable and sustainable by the individual. Argue your case for a further reduction.

Lynn Taylor
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IVA Adviser
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793 Posts

Posted - 04 Dec 2019 :  10:49:40  Show Profile  Reply with Quote
Excellent advice from Lynn here RegularAtomic.

I do hope that you're able to get this sorted out.

I am a professionally qualified debt adviser. To contact me about starting a IVA please:?      
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