So ive taken payment breaks from our iva. Do I pay wot I was supposed to pay then ? Or wot I pay now? When payment breaks occurred I was paying alot less then now.
Hi. There has been some discussion on this question recently, with no definitive answer. Some IP's use the payment at the time of the break ( which is fair as you will then be repaying what was missed). However, some will use the current amount.
I am afraid only your own IP can say which way they jump.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
It is my understanding that you need to make any extra payments incurred through a payment break at the level being made at the time and this makes perfect sense to me. If you miss 6 months of payments at £300 per month, for example, then you need to make 6 additional payments of £300 at the end of your IVA if you haven't already repaid this money. Can't see how any IP can justify asking you to pay back the payment break at a higher level - your annual reviews won't take any account of these payments breaks as your payment is calculated on your I&E. My husband has recently taken a 3 month payment break at £450 per month so he will have to pay back 3 x £450 at the end of his IVA not 3 months at whatever level he is paying by the end of it (as it's bound to be higher!) If this isn't the case, then this is extremely unfair. The only way I can see that you will need to make extra payments at a possibly higher level is if you needed to pay a 12 month extension if you are unable to remortgage so would need to pay 12 months at the level calculated by your I&E at the 60 month point.
An interesting arguement when looked at this way around. But, playing Devil's Advocate, as I sometimes like to do:
I do wonder what the reaction would be if the break was taken when, say, the person was paying £300 per month and their payment was later reduced due to hardship to £200 .........
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Following the recent death of my father, GT granted me a 1 month break. As he had no insurance, my brothers and I are splitting the funeral costs equally 3 ways. My brother has agreed to accept £50 a month until I have paid my share.
GT have now reduced my payments from £210 to £160 to allow for my payments to my brother. However IVA was due to reach 5th year in July 2015 but has now been extended until November 2015. So I am still paying back the same amount over an extended period.
Hi Jayne. As you end up paying the amount initially agreed to be accepted by your creditors this would seem a sensible course of action by GT, helping you as well as adhering to the agreements goals.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
