Return to DMP as I cannot get business insurance in IVA?

[Daveddr100]

I am in a IVA and have made the first payment however I cannot get business insurance and without it I can not work. I would like to know if it is possible to go back on to a DMP.

[kallis3]

Hi Dave and welcome to the forum.

How long have you been in your IVA? I'm sure some of our other posters have managed to get business insurance. Can you not just renew with your existing company?

[luluj]

welcome to the forum. Once in an IVA and it has been approved it will remain on your credit file for five years even if you decide to fail your IVA and return to a DMP.

Business insurance is available - however you may need to use a specialist broker who will be able to locate an insurer willing to help.

Keep posting and we will continue to support you !

[Daveddr100]

Hi All,

We were on a debt management plan for a year then they contacted us and said we would benifit more from an IVA. We have just under £15000 worth of debt. My wife is a teacher and I am self employed.

Cutting a long story short they said we would pay back £150 pcm for 5 years then any outstanding debt will be written off. We were happy on the debt management plan but we thought that we could save nearly £6000 so it might be worth a go.

We have just made our first payment on the IVA last week and they have contacted us saying that I need to work more hours (I'm currently working 20hours they said I need to work 35+ hours or find a full time job working for a company rather than being self employed)

Then I came to renew my public liability insurance and they have said they won't insure me anymore because I'm high risk. I thought this was odd. They recomended a company but the price for the premium is nearly tripple what I have paid over the last two years.

Anywhoo I think I would like to go back on the debt management plan but I would like to know if im legaly bound to carry out the 60months. Like I said before we have just paid the very first installment last week.

I suppose all I need to know is if it is possible to come off an IVA and go on a DMP (Again)

Thanks for all the help

[kallis3]

Which company are you with Dave?

You can let your IVA fail by missing three payments and then you can try a DMP again.

[Daveddr100]

The DMP was with Gregory Pennington and it is their sister company freeman Jones who sorted out the IVA. By missing three payments would that make things worse? Would a debt management plan take us on after a failed IVA?

We both feel cheated in a way because they never said that I would struggle to get business insurance or I would have to work more hours etc the reason I work 20hours is because I crushed my foot in a work accident in 2007 and manual work takes its toll on me after standing on it for long periods of time.

Because the IVA is in very early stages do we not have like a cooling off period etc

Thanks for the reply

[kallis3]

You can do a DMP again if the IVA fails. Unfortunately your credit record is shot and a lot of people find it hard to get business insurance.

You normally have 14 days in which to agree or otherwise to your IVA. Sounds as though you may already have past that date.

I hope some of our self employed posters can come on and assist with any insurance they have managed to get.

[Judo]

I don't quite get why they are only questioning your hours now?
They obviously must have gone through all of this with you at proposal stage. Was working more hours a modification set by the creditors at your meeting?

[Shining]

Did they not mention that they would require you to work more before the creditors meeting, I assume you've passed the creditor meeting date? All of this should have been discussed with you in great detail. I'm not sure about the insurance but sure one of our self-employed posters should be able to help with that one. x

[Judo]

Unless Dave is still in the early stages and means that he has paid fees upfront already.

[lem]

Dave, I do worry a little that you don't seem to be completely informed about what an IVA is and what this means for you? obviously I can only go on your posts but having entered an IVA means you have to pay in your disposable income every month for the duration, this could mean increases above what you are paying now if your income goes up over the next few years (although some of it could be offset against rising costs in your expenditure), you can't look at it as 'saving £6k' over a DMP as it's more a case of you pay back as much as you can over the term and if there is any remaining at the end of the IVA, this is written off.

As you have an IVA approved which is a legally binding agreement of your insolvency, this means this will be on your credit file for the next 6 years irrespective of whether you allow it to fail and go back on a DMP (so you would now still have the difficulty of increased business insurance premiums regardless I guess), there is no cooling off period as once the IVA has been accepted by your creditors you are bound by the terms and conditions of the proposal you will have signed. Did it state in there there would be a requirement to increase your hours? or was this a modification requested to get the IVA accepted?

It doesn't matter that you have only made one payment into the IVA, you are now bound by the IVA unless you allow it to fail by missing 3 payments, but then will be back to square one, have the IVA still on your credit file for the next 6 years and have to try and restart the DMP.

I'm quite alarmed that you seem to have signed up to this without being fully aware of the implications of what you were taking on? Although, there are many other self employed people in IVA's who will be able to advise further on business insurance.

[kallis3]

I think he has been accepted for an IVA, these things should have been discussed either before the IVA or on the date if they were modifications.

What does it say on your proposal and chairmans report?

As to the insurance, we have a lot of self employed posters on here so hopefully one of those will be looking in and can help.

[Daveddr100]

Basically after the meeting they said I need to seek full time employment or increase by business hours before they will accept us on the IVA. They have sent me a form to sign saying I will actively seek full time employment or increase business hours however I have not yet signed and returned it. The first monthly installment went out last week.

They just kept saying that this was the best option for us and we listened to them. Now I'm not so sure we did the right thing.

Thanks for all the comments

[lem]

so have you had the creditors meeting and the IVA been approved or are they saying at the moment there is not enough disposable income to get an IVA approved and that is why they are saying you need to increase your hours?, can you clarify?

[kallis3]

I'm a little confused as well. Has your IVA been approved? Have you got your chairmans report from the IP?