Please help

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Post by joanna.f » Wed Apr 01, 2009 3:11 pm
I have been in my IVA for a year now and pay £332 per month. My debt is £30k. I have just done my annual review and it became clear to me & the IVA company, that my expenditure has increased (due to moving out of home & into a flat with my partner) and that on my current income I can no longer afford the monthly payments. They said there isn't anything they can do.

Before I took out this IVA, I told the company that my expenditure would change soon as I was planning on moving out of home. They said this wouldn't be a problem and to contact them when it happens and we could reduce payments.

I did this in September and I was told that I could reduce by a maximum £50 per month but this would increase the term on my plan by an extra 12 payments to cover the reduction. I didn't take this option as I was told that I would not be allowed to miss any payments if I reduced by £50 so I decided to continue to pay £332 per month, with the option of missing up to 12 payments (obviously making these up at the end of the plan, but I preferred this option to cover me for unexpected expediture costs, such as washing machine replacement like I am having to do now).

Now they have told me that I can only miss 3 payments in total and this is devasting news to me. I have already been diagnosed as clinically depressed by my doctor because of the stress this has put me through, I am having to borrow money from my boyfriend each month to make it through, which I then have to try to pay back each time I get paid, but end up borrowing again later on in the month because I'm short on cash again.

Looking online at IVA information and they all say " If during the period of your IVA your circumstances change for the worse and you cannot maintain the agreed payments, the IP can ask your creditors if they will agree to vary the terms of your proposals. If up until that time, you have maintained your payments without problem, your creditors may be mindful to accept such changes"

What is the purpose of the annual review if no changes can be made? What are my options if I can't afford the payments anymore?
I feel like they keep saying one thing, and then changing it!

Please help :(


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Post by kallis3 » Wed Apr 01, 2009 3:19 pm
Who is your IP company?

They should certainly be sympathetic if your costs have gone up. I would email your IP direct. You can find them here:

Send an email outlining your position and ask for a variation as you cannot afford the payments at the level they are.
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.

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Post by David Mond » Wed Apr 01, 2009 3:46 pm
Let us know who you are with and we'll try and help
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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Post by MelanieGiles » Wed Apr 01, 2009 4:15 pm
You are entitled to put forward a variation of the terms of your arrangement to creditors, and this can include a reduction in payments. Of course creditors would have to agree to the reduction, but so long as the reasons for this are carefully explained by your IP, and the revised proposal continues to be financially viable for them, there should be no problem.

I suggest that you speak to your IP about this directly.
Regards, Melanie Giles, Insolvency Practitioner
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