As we're waiting for a creditor's meeting in the hope of reducing the monthly payments, should we still pay into the IVA? I don't think the creditors meeting will be until January. We didn't pay November as we had to pay upfront fees for the car lease. Now December's is due soon.
I don't want to miss payments, but on the other hand if the creditors say no, I know we're going down the BR route. So I don't want to hand money into the IVA that could go towards BR fees.
I have thought about putting the money to one side so if reduced fees are accepted I can pay Decemeber's payment in with january's...if that makes sense [:)]
Hi Julie, Sounds good to me, you are putting to one side the amount of money you are proposing in the variation & if approved you can then pay for the IVA to be up to date? only a novice but sounds logical to me & if it is not approved you have the money available for the BR!
The person to ask in this instance is your supervisor.
Because the VA is almost 2 years old, there may be clauses in, or modifications to, the proposal that deal with bankruptcy and its funding. It may well be that the Supervisor has to retain sufficient funds with which to petition for your bankruptcy.
Presumably the creditors are going to be asked to consider reduced contributions in to the arrangement. What is being offered in the event that creditors do not agree to this? Is the arrangement to continue as it is or is it going to terminate?
I would contact your IP and discuss this with him / her.
The supervisor does not have to retain any funds for BR. If the reduced rate is not accepted then BR is our only option. The IP is fully aware of this.
I'm not going to ask the IP as surely he will advise making the payments. If I do this and BR is the route to go, I have lost the money - thats why I thought about keeping it aside.
I completely agree with Cybus - if I were your IP and you were asking for a variation for reduced payments, I would certainly want to see you paying the reduced level as confirmation that they are affordable.
Definitely two points of view going on here! it is clear that an IP would advise continuing the IVA payments at the reduced rate until a dicision has been made but from the debtors point of view it is a not that clear cut, surely it is better to hold the money back & if the variation is approved then pay the money over? surely the IP can make this point clear to the creditors at the meeting. I'm with julie, why pay the money then be rejected? if they want the IVA to continue then give the money to them if they don't use it to help go BR!
Hi
I have to agree with Julie and Fox and would put the funds to one side.If the variation is agreed then send off the payment, if not then you have your funds for bankruptcy.
Regards
Hi - interesting to see the different viewpoints. I suppose if I had complete faith in the IP, then maybe I would make the payments. However, given the struggle I had even to get a telephone call, I am not convinced the variation will be accepted. Therefore the payments made would be a waste of money - so the money will put aside just in case.
Your contractual obligation is to pay the payments Julie, until the IVA is varied. My advice is provided on this basis, but I do understand that things are often viewed differently from a debtor's perspective.
