can I continue with IVA until payment completed?

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robert_w

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Post by robert_w » Thu Jan 11, 2007 5:48 pm
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say after 5 years the agreed sum to be pid back has not been met can i continue with the iva untill all debts are paid off??
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jamesfalla

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Post by jamesfalla » Thu Jan 11, 2007 6:06 pm
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Hi Robert

An IVA is not something to be entered into lightly.

The hard and fast rule is if you enter into an IVA but do not make the agreed payments then the IVA will fail. This means that your origional debt will still be owed and you may face bankruptcy.

There may be instances where the repayment sum originally agreed within the IVA is not met. However, these would have to be due to exceptional circumstances and agreed by the creditors. For example, if you are in an IVA and have maintained your payments properly for 4 years but then loose your job, this may result in a reduction in income. Your IP could propose a variation of the terms of your IVA to your creditors allowing you to reduce your payments. This would only be acceptable if the creditors agreed.

It is highly unlikely that creditors will agree to a variation of your IVA in the early days (ie in the first 12-18 months.

All the Best
James Falla

Expert in IVA, Bankruptcy and informal Debt Management solutions, with extensive experience of solving personal debt problems over the past 10 years. I am regularly featured on BBC News, Finance Programs and Radio.
James Falla

Expert in IVA, Bankruptcy and informal Debt Management solutions for over 10 years.

For more information visit www.jamesfalla.com and visit my blog at: http://jamesfalla.blogs.iva.co.uk
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