Payment break question

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honeycomb

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Post by honeycomb » Thu Oct 23, 2008 7:15 am
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If you take a payment break with the permission from your IP does this count towards the 3 missed payments which would make a default?
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MelanieGiles

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Post by MelanieGiles » Thu Oct 23, 2008 8:41 am
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Yes - but your IP could approach your creditors to see if they payment break could be accepted as part of the IVA terms, which then would not constitute a portion of an arrears build up. This is only usually done if the break is anticipated to be for more than 3 months.
Regards, Melanie Giles, Insolvency Practitioner
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honeycomb

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Post by honeycomb » Thu Oct 23, 2008 10:12 am
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If you take 3 separate payment breaks during the 60 months will this be a default?
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MelanieGiles

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Post by MelanieGiles » Thu Oct 23, 2008 12:44 pm
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Yes - and your IP would then need to seek a formal variation of the IVA if there were prospects for you to commence paying in the future.
Regards, Melanie Giles, Insolvency Practitioner
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james.c

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Post by james.c » Thu Oct 23, 2008 10:09 pm
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Had i had to take a payment break, due to car repairs, my ip told me that he would accept it, if I sent in the receipt to prove the payment and then increased my payments, so i had paid up the full amony by the next review
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David Mond

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Post by David Mond » Fri Oct 24, 2008 12:54 am
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Supervisors are in the main quite happey to propose payment breaks (only for good solid reasons)to help those who are struggling - most creditors will accept this
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
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