I have just finished year 2 and am £9000 in arrears with additional payments. In the report there is a vague promise that I will increase the lump sum. This will not be possible at the moment because my partner has lost her job. Do you think my IVA will fail?
Could you supply some more info as £9,000 seems a huge shortfall and I do not understand what the lump sum is. Most breaches can be rectified if your IP is aware and seeks approval of the creditors.
In so far as creditors get their 'minimum dividend' then No your IVA wouldn't fail but if 9K is what is owning in arrears for that monthly accumulated IVA 'fund', the 5 years time frame to pay the IVA may need to be extended to xx years? I suppose you have deferred payments in the past for this arrear to build up, alternatively the debt that was declared at the IVA meeting was less than what creditors are cliaming for?? Still it is large, I would expect discrepancies of maybe a 1K
This is additional income above the normal payment of £460 a month ie overtime/bonuses etc. Also our salaries have gone up so the minimum payment is £460 plus 50% of the salary increase
Were you not asked to increase your payments at your yearly review? I do find it strange that such a large sum has been allowed to build up by the IP.
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
It appears that you will need an urgent variation and I am surprised creditors have not reacted to what was in the annual reports. Your partner has lost her job so a new I&E will need to be done to determine ongoing affordability but creditors will also have to retrospectively forgive the previous non compliance.
As suggested. an extension of the IVA may be a sweetener as would equity in year 4/5.
Why have you not paid across the extra monies to your IP, or why haven't they been asked for? This is quite bizarre, and creditors will expect to see this rectified before the IVA concludes. I agree with Michael that a variation of the original proposal should now take place to accomodate your proposals for settlement.
