long term illness which affects income massively

[the.h]

What happens if you start an IVA and then suffer a long term illness which affects your income massively

[MelanieGiles]

Hi there and welcome to the forum

You would need to review the situation with your IP to see whether a payment break would be appropriate, and would probably need to produce a doctor's note to confirm your most likely return to work date.

Ultimately, this could result in the failure of your IVA, but if you had paid in a number of contributions it could be possible to persuade creditors to accept a reduced dividend based upon the fact that you could no longer service the IVA.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Adam Davies]

Hi
You could see if your IP/creditors will allow for you to pay into an insurance plan that covers such an eventuality before you start your IVA
On this subject surely a condition of any self employed person going into an IVA is that they have insurance to cover against illness ?
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

Not necessarily, Andy. And creditors these days are modifying these policies out.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Adam Davies]

Hi Mel
I know that they are,but let's remember that self employed people do not get any sickness benefit,unlike employed.
Surely it makes commercial sense to add this to an IVA agreement ?
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[CoverItAll]

Surely a cost of only 3.5% of the monthly IVA payment would be allowed ?

[MelanieGiles]

John

A lot of the creditors are block barring this by including a modification in their standard modifications. I will bring some samples with me to the meeting next week.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp