Payment of additional earnings

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SkintSally

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Post by SkintSally » Tue Apr 27, 2010 1:43 am
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I am nearing the last year of my IVA. I have never missed a payment, but I have fallen behind with my additional earnings and ashamedly owe my IP several thousands which I cannot pay intime. So far I have paid a lot more than the origional proposal required. Can my IP fail the IVA at the end of 5 years if I cannot pay the additional payment intime? Or can they extend the IVA or even right off the extra money? I'm so close and dont want to fail now.

thanx Sally
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kallis3

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Post by kallis3 » Tue Apr 27, 2010 6:32 am
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Hi Sally, and welcome to the forum.

If you have paid back more than your original proposal, this should put you in a good position.

You need to speak to your IP about this, it is in no ones best interests to let the IVA fail now. They may extend.

In future, it would be better if you sent any additional payments off as soon as you receive them. That way you won't have to worry.

Hopefully one of the professionals will be along.
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
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Shining

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Post by Shining » Tue Apr 27, 2010 8:01 am
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Hi Sally and welcome to the forum from myself too.

I'll keep this bumped up for a professional opinion. Hope it all works out for you. x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
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Michael Peoples

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Post by Michael Peoples » Tue Apr 27, 2010 9:57 am
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It is likely that the non payment of additional income will constitute a default of the IVA and your IP will be obliged to call another meeting of creditors. The IP will have to seek sanction to forgive the default and creditors may seek an extension for the money to be brought in. However, they may ask for failure and bankruptcy if the reasons for the arrears are not properly explained so you should speak to your IP and explain exactly what you did with the money. This would help.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
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MelanieGiles

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Post by MelanieGiles » Tue Apr 27, 2010 10:24 pm
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It is particularly annoying for IPs and creditors to try and deal with arrears of uplifts if there are no mitigating circumstances as to why the money has not been paid over. This will constitute a default on your part which may require the term of the IVA to be extended, in order to allow you more time to pay over the money which remains due to the IVA.

If there are mitigating circumstances which have prevented you from paying over this money, do make sure that your IP is fully aware of them. To be frank I am suprised this situation has been allowed to continue over the course of the IVA.
Regards, Melanie Giles, Insolvency Practitioner
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