Hi we are 3 years in now & havent missed any payments etc etc,This month my partners self employment has been hit hard due to credit crunch & bad summer & she needs to find full time employment to cover this period for approx 3 months.
I phoned IP who then sent us another income & expenditure sheet to fill in which obviously showed we have lost 1 income & cant afford any payment at the moment.
Just received a reply from IP to say if we would like for them to arrange a creditors meeting to see if they would allow us to not pay instalments until my partner can find employment then they would do this but do state that if creditors dont agree to this then we would be facing bankruptcy.
I find this totally harsh & have to think wether its worth the gamble or not.But how the hell do my IP expect us to meet our instalments when we have just lost over half of our income.
Last edited by kieser on Sat Nov 29, 2008 5:44 am, edited 1 time in total.
Sorry to hear of your troubles - in this present climate, you will not be the only one in these circumstances.
It seems your IP is suggesting payments breaks to give your partner time to secure employment. This will have to be okayed by the creditors, but if they have nothing to lose by accepting. As you say, you've paid as agreed for the past 3 years and the creditors will want to give you a chance to continue.
To go BR now - if that's an option, depending on your circumstances, would be a great shame after the effort you have both put in.
Why not let the IP approach the creditors -you have nothing to lose, they can say no.....but they might say yes. A bit of breathing space will ease the pressure for you.
As I said you're not alone in needing support from your IP - you'll also get support on this forum. Others will be along soon to offer their advice too.
Thanks swans girl.
What im worried about is if i agree to my IP going to my creditors.if they say no will they automatically make me bankrupt or do they say no & just expect us to carry on with the payments as normal.
The creditors won't make you bankrupt - for the IVA to fail you have to miss 3 payments. Then you're back to square 1 - and can consider any options avaialble. Maybe a DMP could work for you?
If you chose to go BR...
Have a look in your proposal, there should be a clause that will say if your IP holds any funds for BR. If it does, the IP will assist you with BR .. If itsyas " no funds will be held with BR" (something along those lines) then you can start the BR route yourself.
Who are you doing your IVA with? If you post more info maybe an expert can help....my hubby's IVA needs reduced payments for us to continue so I know how you're feeling.
We are with Synergi (yes i know)the first year it was agreed £500,but the 2nd year after our income & expenditure we had no money spare for payments but were still expected to pay £500 or we would go bankrupt.the third year just gone our income & expenditure arrived at the figure of £179 but we were told to still pay £500 or go bankrupt,i thought you were only supposed to pay what was so called disposable income but we have had no suggestions from our IP about lowering our payments even though every year our I&E shows clearly that we cant afford anywhere near £500.I clearly dont understand this procedure but just want to pay my debts & after this is done get on with my life.
It does seem a bit harsh that you are not being allowed to lower your payments when it appears that you clearly can't afford them.
How much is your total debt? as Julie says, you could always consider a DMP until you get back on your feet.
It does seem a shame to go bankrupt when you are this far along the route.
How have you managed to fund your payments?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
my partner is facing uncertainty in his job there must de alot of people in the same situation surely they cant be that cruel. there not going to acheive anything by doing this. theres a new legislation out for reclaiming or getting your debt written off if you took it out before 2007 have ago what have you got to loose.
Thanks swan girl. were just exploring all different options, were hoping the iva company will be simpathetic with us when my partners hours get cut as we wont be able to pay them the amount we are paying at present. As i keep hearing that sometimes there not so heplful.we dont want to go the the br route as we are 2and half years into our iva.
If you cannot meet the payment, then you may just be stessing yourselves out for no reason. I would try the variation route, and if creditors do not accept reduced payments then you may need to consider whether bankruptcy or even a DMP is not a better option.
