Please could you tell me if it is possible to take a payment holiday during my IVA? And is a 6 month break reasonable. I am currently in my 3rd year of my IVA
As I wish to have money availible to either repair my current car or look around for a new second hand car?
Hey b165, I think this was answered in your earlier post. How much do you need and what are your monthly payments as 6 months might be a little too long. X
To get a payment holiday your Supervisor needs to ask creditors who would vote on it in the same way that they voted on the proposal initially. Creditors are usually sympathetic to a holiday request in order to replace a car if monthly contributions are up to date. 6 months is not unheard of but it will depend on your creditors and how much you are looking to spend on a replacement car.
Good luck
Sarah Nancollas - Licensed Insolvency Practitioner with over 20 years experience.
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You need to look at the wording of your proposal and modifcations. There is usually room for a break of some sort, and in some cases you can reduce contributions by up to 15% provided that you make them up within 12 months of the end of the VA.
Any payment holiday needs creditors' consent - so yes, your Supervisor would need to call a creditors meeting.
Sarah Nancollas - Licensed Insolvency Practitioner with over 20 years experience.
Providing positive solutions for your debt problems.
For free no obligation advice on all debt solutions please click here www.nancollasgreer.com/html/contact_us.html
That is correct Viki - the IP can use their own discretion up to three months missed payments, but there would need to be a firm plan to make up the arrears. It is hard to see how a 6 month payment break would assist in the purchase of a new car, unless the poster is proposing to save up the money and then buy at the six month point. I would personally explore whether friends or family could help out - who could then be repaid at the end of the IVA if they were willing.
