Missed Payments

[Beanie24]

Hi,

This is my 1st post.

I started my IVA in August 2005, I have paid my monthly repayment of £477 every month without any problems. In April this year, due to work not comimg in my hours at work were dropped therefore my wages were dropped from £1400 per month to £800 (take home pay) from May, I contacted ClearDebt immediately to inform them about the reduced hours and that I was searching alternative employment.

ClearDebt advised me to cancel the standing order immediately and that if I didn't find new employment after missing 3 months payments they would have to contact my creditors to advise them of this. I was advised not to worry, it was expected that circumstances could change within a 5 year period and that any payments missed would be added on to the end of the agreement.

I have to date been unable to find new employment, but continue to earn £800 per month.

Today I have received a letter from ClearDebt stating I am in breach of the IVA, having missed 2 payments, although I have now missed 3, that they now have the right to issue a Certificate of Non Compliance and fail the IVA. They go on further to advise if I wish the arrangement to continue I must give them a proposal for making good the arrears within 7 days. If an arrangement can not be reached they have no alternative but to start termination proceedings against me.

The reality of it is, I can probably afford to pay £50 per month but I can't afford to start paying them £477 per month again plus more on top to cover the 3 months missed.

I feel somewhat let down and misguided by them and I don't know what to do

[kallis3]

Hello Beanie, just wanted to welcome you to the forum.

I can't answer your question, but one of the experts will be along shortly and will be able to give you some advice.

[Lisa2009]

If you read your proposal, it will probably state in there that 3 months missed payments will put you into breach. If you were told otherwise, was it said by your IP or just somebody in their call centre?

At this stage, do you have any assets that would be under threat if you filed for bankruptcy? this may now be the better option if you still have not found employment.

[Beanie24]

The person I spoke to was not my IP as he was on holiday, it was the person covering his workload.

I have no assets, I'm living with parents still because I can't afford to move out.

Is it worth offering them £50 or would it be rejected?

[bev.nn]

God this is awful for you. I too am no expert but I'd have thought that 3 years into paying your IVA - with an excellent record and no missed payments, their suggestion seems a bit harsh under the circumstances. My understanding is that all IVA's are unique and people's circumstances do change - through no fault of their own, and therefore there should be a bit more flexibility built in. Its in Cleardebt's interest not to see you faill so I'd have thought at the very least they need to work with you to sort out some kind of solution for everyone all round. Have you talked to your IP SUpervisor yet?

[Lisa2009]

To be honest, thats just going to put you into further arrears so i cant see them entertaining the idea.

[andrewgoodman121]

Maybe you can request a variation as you are paying £477 per month which seems a lot.
Can't your IP reduce your payments to the creditors and take into account the 3 months you have missed and add them onto the end of the arrangement.
It seems such a waste to go all that way and then it fails.
There must be a lot of money in the dividend pot and it would be totally unwise to make you Bankrupt.
Mind you i am no expert but that is my general thought.

[Viki.W]

Hey beanie24, welcome to the forum. One of the experts who posts regularly on here is from cleardebt so he might see this thread and be able to sort it out for you, off-line of course. Good luck. Viki X

[Beanie24]

Having checked my email, another representative from ClearDebt has emailed me to ask for an update of my situation and advising if I have not been able to find new employment, we can report this to the creditors and ask for more time - a process called a Variation.

Within the course of a day I've had a Recorded Delivery letter threatening termination procedures and then an email off someone completely different in the same company being super helpful.

The rollercoater obviously doesn't stop when the IVA starts it just carries on.

[Viki.W]

Maybe he saw your post. [;)] X

[chardonnay]

Hi Beanie,
I'm no expert but I really feel for you, having tried so hard it's sad that circumstances are stacked against you. Hope fully the experts can help you find a solution,
Thinking of you,
Chardonnay

[aguise]

Hi Beanie. Sometimes these companies have computer generated letters, you miss three payments and the standard letter goes out. I would ask to speak to your Ip directly and request as suggested that a variation be called, and either payments for the rest of the term drastically reduced or at least until you can find better or other employment to supplement the other. Such a shame for this to happen when you have paid for three years.
I hope all can be sorted for you and a solution found.
Wait for other answers though I am not a technical expert.


Ang

[Beanie24]

I too thought at 1st it was just a standard computer generated letter however it mentions my communication in April regarding the change of income. I have emailed the representative who emailed me to ask for clarification on what my next step is.

[lighton]

Hi beanie , i have been issued with a breach letter twice .I wouldbt panic to uch.Ring you supervisor tomorrow.Insist you speak to them or someone higher.Explain the situation .Mine gave me extra time to pay my arreras it wasnt long but we managed and in the mean time we had a variation and had ours reduced from 350 a month to 250 a month.I really dont think they will accept 50 a month id offer 250 and see what happens .I havnt heard of anyone paying less than this.I should imagine it depends on how much your original debt was.I am waiting to hear if my supervisor will ask for a variation of mine again, as our bike hp has ended and it was stated that this would be paid into ivaBut we cant afford it at moment.Good luck you must ring them first thing and put your mind at rest .I know its horrid when you get one of those letters.But try not to panic.

[Lisa2009]

The big problem here is, with no income how can monthly payments be met let alone arrears.

Maybe the supervisor can give beanie more time to find employment. I dont really know.
I genuinely hope so because it would be such a shame to see it fail so far in.