my wife and i have an iva it should be comming to an end jan 2017, however due to a variation and a bankinking error some payments were missed as our ip changed banks, the way in which our iva was set up our ip took 6 years of projected earning from our retail business in order to set up the iva, had we not have gone to a variation our payments would have been at present 1700 pm, after our variation was accepted our payment came down to 425 pm far more managable.the problem we now have is that in order to get the variation through we agreed to extend the iva term by 18 months since this arrangment our ip has recieved approx 20k in ppi payments my question is can my iva revert back to its orginal agreed term, my ip told me that had he known about the ppi he could have wound up the iva at the point of variatin application. in the past 6 months i have been diagnosed with a heart condition, im 57, and my wife has been told that she will need a historectomy in nov and will have to take 7-10 weeks off work as you can imagine it is a worry we could do without the iva needs to fininsh jan2017, your advice would be greatly appreciated. many thanks stuart james.
As things stand the creditors are expecting the IVA to carry on as they agreed in the variation. The PPI payment is due to them as part of the IVA -- this is a bonus for them and does not replace projected payments.
For anything to change now the IP would have to go back to the creditors to ask them to agree to new terms -- which, to be blunt, they have no reason to do so. It is possible they might agree to a reduced term due to the health issues, but more likely they will agree to a break while your wife recovers -- this then would be added on to the term. That all said, the fact that they have had this extra sum might make them more amenable.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
You would need to put forward new variations for your creditors to consider. Speak to your IP about it, although it is not for them to decide upon hopefully they will be supportive.
