Hello,
I''m currently paying into an IVA and my circumtances are about to change dramatically. I am pregnant and expecting my first baby in December and my maternity pay will drop accordingly after one month. My real sticking point is the fact that by December I will be in week 56 of my 60 month IVA and my payment record has been exemplary over the period, having not missed a single payment. However, having written to the people supervising my IVA, they have come back with 2 proposals that are just not reasonable and have caused some distress to myself. I''m currently paying £525 per month from my £2100 net monthly salary and their proposals suggested, paying off with a lump sum (£3,675) or suspending my payments for 6 months. Both these options are completely not feasible for me. Obviously finding the suggested sum for early payment could not happen and the idea of extending the period is even worse. After 4 months off for maternity, I will be paying £600 per month in child care (which in effect could last 5 years). I''m about to write to them to explain how distressing their proposals are, but would very much appreciate some expert advice to where I stand on the matter. Ideally, I would like my payments to drop in relation to my salary as the same percentage for the remaining 5 months of my agreement,
Thank you for your time,
Elizabeth Tatterson
Hi Goldie and welcome to the forum - many congratulations on your good news.
If you were my client, and you had paid 56 out of 60 payments and had no way of paying anything for the final four months, I would write to your creditors to seek their agreement to them accepting the payments you have made so far in full and final settlement. If you can reduce your payments but still pay something, then even better.
A short variation is all that is required, and I would not have thought this would greatly reduce the overall dividend prospects for creditors.
Well done for getting so far without any problems. I would ring and ask to speak to your actual Ip, do you know how much your income will drop by. I hope you manage to get sorted and find a way to get finished.
Congrats and all the best for the up and coming birth.
Wait for other answers from the tech ical experts.
Firstly really well done for getting this far with your iva with no problems, that really gives hope to others, me included, who are at the start of theiir iva's that it can be done.
I really hope you find a way forward with Melanies suggestion as stress is the last thing you need right now and you have conducted your iva perfectly and deserve some recognition for that,
Let us know how you get on & Good Luck
Emma
Be positive & look after yourself, there are more important things in life than debts....
Can I just check with you - are you in month 56 or week 56 of your arrangement? If it is week 56 then Melanie's advice might not be appropriate. Spot on if it is month 56 though and I would agree with her whole heartedly.
Please clarify and we can advise you further if it was a typo.
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
Hi Elizabeth.
Congratulations from me too and I would like to say I totally agree with what Melanie is suggesting about closing the IVA early. You did not mention anything about a fourth year valuation so I assume there is either no property or it was totally excluded.
Enjoy your pregnancy and try not to be stressed. If your IP is employed by one of the firms on here it could be possible that someone could speak to the IP for you as they do not always review every piece of post personally.
Given your great news, your compliance history and the fact that you are nearly there, it would be a cold creditor that would object to an early closedown.
Thanks everyone for all your kind words!
Yes I will be entering my final 4 months by the time my maternity pay kicks in. I'm about to write to my IP so I will keep you posted on proceedings.. Thanks again
Lizzie
Michael Peoples wrote:
Hi Elizabeth.
Congratulations from me too and I would like to say I totally agree with what Melanie is suggesting about closing the IVA early. You did not mention anything about a fourth year valuation so I assume there is either no property or it was totally excluded.
Enjoy your pregnancy and try not to be stressed. If your IP is employed by one of the firms on here it could be possible that someone could speak to the IP for you as they do not always review every piece of post personally.
Given your great news, your compliance history and the fact that you are nearly there, it would be a cold creditor that would object to an early closedown.
Hi all, Well I've written to my IP now so fingers crossed! One more question I have though, does anybody know if finishing my IVA early will have any effect on my credit rating? I've stressed in my letter that I just want to pay the same % in relation to my maternity pay as I'm paying on full pay, for the last 4 months of my agreement. If they decide that I could end it now, I'm a bit worried it could have a negative effect on my credit score.
Thanks in advance,
Lizzie
