can creditors order an extension of time ?

8 posts Page 1 of 1
Post Reply
 
 

Nannywhite

User avatar
Posts: 1
Joined: Wed Apr 23, 2008 2:40 pm
Location:
Post by Nannywhite » Wed Apr 23, 2008 2:41 pm
Quote
When you have an IVA, you are supposed to be debt free within 6 years. I've heard that the creditors can order an extension of that time. Is this right??
Top
 
 

sblack

User avatar
Posts: 304
Joined: Mon Jan 07, 2008 2:12 pm
Location:
Post by sblack » Wed Apr 23, 2008 2:50 pm
Quote
Hi,
I am no expert but I think the maximum time an IVA can last for is 7 years, but I suppose it depends what is written in your chairmans report regarding this.
I am sure an expert will be along shortly to give you a definate answer.
Last edited by sblack on Wed Apr 23, 2008 2:56 pm, edited 1 time in total.
"Life is too short to wake up in the morning with regrets. So love the people who treat you right, forget about the ones who don’t and believe that everything happens for a reason. If you get a chance, take it. If it changes your life, let it. Nobody said that it’d be easy, they just promised it would be worth it."
Top
 
 

sblack

User avatar
Posts: 304
Joined: Mon Jan 07, 2008 2:12 pm
Location:
Post by sblack » Wed Apr 23, 2008 3:02 pm
Quote
I found this that may help.

IVAs usually last for 5 years (maximum is 7 years)
The Insolvency Act 1986 states that an IVA can last a maximum period of 7 years. In reality the longest an IVA lasts for is 5 years if the debtor makes regular monthly payments from income as per the IVA contract.

What factors can change how long an IVA lasts for?
Is the date of retirement near for the person applying for an IVA?
The age of person applying for an IVA?
Special circumstances where the person applying for an IVA such temporary loss of job and so need to make the IVA last longer to make up for the gap in payments.
Can an IVA be extended to last longer or reduced to finish early?
An IVA repayment period can be extended if the creditor requires the term to be varied. An example of this happening if some IVA payments are missed and so have to be added on to the IVA.

To extend an IVA the creditor must make a "Variation Order". A variation order is requested by the IVA Insolvency Practitioner.
Last edited by sblack on Wed Apr 23, 2008 3:05 pm, edited 1 time in total.
"Life is too short to wake up in the morning with regrets. So love the people who treat you right, forget about the ones who don’t and believe that everything happens for a reason. If you get a chance, take it. If it changes your life, let it. Nobody said that it’d be easy, they just promised it would be worth it."
Top
 
 

MelanieGiles

User avatar
Industry Expert
Posts: 47612
Joined: Tue Jan 09, 2007 10:42 am
Location:
Post by MelanieGiles » Wed Apr 23, 2008 10:52 pm
Quote
Where on earth did you find that article? It is pretty factually incorrect - especially in stating the timescale for an IVA being in accordance with insolvency legislation. This is not covered in the Insolvency Act or Rules.
Regards, Melanie Giles, Insolvency Practitioner
Top
 
 

sblack

User avatar
Posts: 304
Joined: Mon Jan 07, 2008 2:12 pm
Location:
Post by sblack » Wed Apr 23, 2008 11:06 pm
Quote
Hi Melanie,
It is from Insolvencyhelpline.co.uk
"Life is too short to wake up in the morning with regrets. So love the people who treat you right, forget about the ones who don’t and believe that everything happens for a reason. If you get a chance, take it. If it changes your life, let it. Nobody said that it’d be easy, they just promised it would be worth it."
Top
 
 

MelanieGiles

User avatar
Industry Expert
Posts: 47612
Joined: Tue Jan 09, 2007 10:42 am
Location:
Post by MelanieGiles » Wed Apr 23, 2008 11:08 pm
Quote
Well they could do with getting a professional to look at their technical content - whoever they are!
Regards, Melanie Giles, Insolvency Practitioner
Top
 
 

sblack

User avatar
Posts: 304
Joined: Mon Jan 07, 2008 2:12 pm
Location:
Post by sblack » Wed Apr 23, 2008 11:24 pm
Quote
They are called the UK Insolvency Helpline.
It looks like a professional Q&A site about Insolvency etc.
It just goes to show that even if they look and sound the business, it doesn't always mean that they offer correct information.
I'm sorry but it looked pretty reliable to me.
"Life is too short to wake up in the morning with regrets. So love the people who treat you right, forget about the ones who don’t and believe that everything happens for a reason. If you get a chance, take it. If it changes your life, let it. Nobody said that it’d be easy, they just promised it would be worth it."
Top
 
 

MelanieGiles

User avatar
Industry Expert
Posts: 47612
Joined: Tue Jan 09, 2007 10:42 am
Location:
Post by MelanieGiles » Thu Apr 24, 2008 12:30 am
Quote
That's the danger with some of these sites. They are made to look and sound official, but in reality are probably marketing fronts for other organisations.
Regards, Melanie Giles, Insolvency Practitioner
Top
Post Reply
8 posts Page 1 of 1
Return to “postings for april”