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A good starting point for IVA questions
By LynneX
I have just come to the end of 5 years in an IVA and because i am unable to re-mortgage to release equity it is being extended for twelve months. But they are also trying to increase my payment even though in the terms it said the extension will be at the same amount as the fifth year. can they do this?
Hi there LynneX and welcome to the forum

i have to say I am not 100% sure in this as I have not heard of it before. I do not think they can change the amount of your IVA payments even if it is an extended year. Have there been any changes in your finances such as an increase in income for them to ask for the extra?

How much of an increase are they asking for?
I am sure another forum poster will be able to help you further but if you can give us a little more info we may be able too help you further. Also what company are you using?
Hello LynneX

If your IVA payments have been extended for 12 months because you cannot release equity from your property then these would normally fall under the same rules as the payments you have made for the past 5 years. As such your IVA company would be within their rights to ask you to increase your payments during these final 12 months if your financial circumstances have improved and you can afford to pay more.

However remember any increase is not absolute. ie you would first have to recalculate your disposable income and your IVA payments would only increase by 50% of any increase in your DI.
Hi there LynneX

I hope the advice that James has given you helped. I wondered if there had been any change in your financial circumstances for your IVA company to ask for the increase in payments?

As James said you would not need to hand over all of the increase but only 50% of any increase in your disposable income. Please let us know how you have got on :)