You most certainly can take a payment holiday, so long as it is for good reason and does not throw your IVA into arrears - which will be dictated by the terms of your individudal arrangement. It makes me cross when I see the inflexibility of some professionals.
I agree with Melanie. The important thing is to ensure that your IVA stays on track and sometimes, in emergency situations like yours, a payment holiday is the only way forward.
Did you actually speak to your IP or one of his or her team. If you spoke to a case administrator, I would ask to speak to the Insolvency Practitioner directly.
Kind regards, Elizabeth Pywowarczuk, Insolvency Practitioner.
If you would like me to advise you about an IVA and if appropriate propose one for you, please visit my website at www.liberta.uk.com
There is unlikely to be any actual provision in the proposal for payment breaks, but this is a form of unwritten rule that good insolvency practitioners will allow a little leeway with their clients - after all it is a difficult journey entering into an IVA and sticking to a tight budget for such a long time.
I would like to see some IPs live to a CCCS budget for a few months - (that has the making of a Channel 4 "fly on the wall" series!) Anyone interested?
I am currently asking for a variation in my arrangement. I have had it slightly extended before but I now need a small payment break and my payments reduced as I now earn less than I did when I started the IVA!
Good on you for recognising that regardless of your change in circumstances, that you still want to soldier on with the repayments. I hope that your creditors see the commercial sense of accepting a revised offer from you.
At the end of the day I just need it all cleared up and if my IP agrees to lower my payments then that seems the best route. If he declines though.....eek!
It is not his decision - it is down to your creditors to decide. If he digs in and refuses to assist you, or put forward a sensible proposal, we will set David Mond after him!!!
well the IP is not going to give me a payment break. Their response was that as I get extra money left over from a lodger, I should use that to pay the phone bill off monthly. I explained I took on a lodger because I was struggling to live on what they left me with. He asked why... I told him about learning to drive, £20 a lesson, £60 for a test, visiting my boyfriend in liverpool costs me £24 a week on train fares, Im sorry but my phone bill is never £25 as they suggest it should be and never in my life has a haircut cost me £5. He says these are not outgoings they can account for. I think there is a serious flaw in the IVA process. You cannot make an accurate payment when your outgoings are above the allowance. I cant do this for 5 years, I have aged about 10 years in the last few months.
unrealistic expenditure set at the start especially if you are struggling after 4 months i would say this is the cause of most IVA failures dont give up just yet did you speak with the ip or assistant?something has got to give i hope they can help you
