Our IP has finally agreed to look at a variation meeting as we are continuing to struggle with payments due to an increase in costs, and regularly going overdrawn by as much as £300 a month.
Proposed figures suggest about a 45% reduction from our original payment, although still providing a return of well over 30p in the pound.
If agreed, will the creditors want to add the shortfall on at the end by extending the term of the IVA?
Or does a variation mean that the new figure replaces the original agreement, and we continue for the remaining 3 years as planned?
You may well have to carry on until you reach the original dividend, unless the creditors are agreeable to a lesser one.
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. http://kallis3.blogs.iva.co.uk
I don't really know what will happen - the creditors may well agree to a lesser dividend if the alternative is that they get next to nothing.
Do you have any assets which would be at risk if you went bankrupt?
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. http://kallis3.blogs.iva.co.uk
Be sure that is the right decision for you - you have paid in until now.......going bankrupt could land up with you paying for a further three years - try for a variation first.....also your credit rating with shot for a further six year period from date of your bankruptcy hearing ........speak with your IP for solid advice......good luck.
You seem to have been making a high return in the first place....therefore in the current climate your creditors may be happy to accept lower payments for the remaining term rather than nothing !
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
It is - it's as though you have started again I'm afraid.
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. http://kallis3.blogs.iva.co.uk
I assume that your IP is trying to get you a variation based on reduced payments based over the same timescale as the original proposals? If so, there should be no extension of time.
You need to have frank discussions with your IP as to what you wish to offer to your creditors. It is your variation not theirs - but they will guide you if what they feel you are offering is unreasonable.
A variation can be anything that is reasonable, just and fair based on your individual circumstances now that gives rise to such variation. You must discuss all these things with your IP and see what he suggests.
Good luck and let us know how you get on.
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.
