I have benn in an IVA for 2+Yrs during which time I have moaned that the levels set at the beginning of the IVA were insufficient and had been shoe horned to allow me to go for an IVA.
Today I received confirmation by phone that it did look that way. A Variation would be started as I have recently become redundant and am seeking employment.
The advise I am seeking is this : 1) Would this constitute a mis sold IVA.
2) If I were to pertition fo BR would the time on the IVA be taken in to consideration.
Allowances in an iva are very tight, but hopefully having a variation would get them to a reasonable level for you.
You have already done half of your iva and it would seem really sad to give up on it now, as if you were to go bankrupt you could still have to pay into that for up to 3 years.
Please wait for a professional to advise as they will know the technical details of it.
Good luck and I really hope you find employment very soon
Emma
Be positive & look after yourself, there are more important things in life than debts....
By the sounds of it, if you say you were shoe horned into it, then you wasnt 100% with the solution that was offered and all insolvency options should have been gone through fully with you and you understood and was happy with the solution that you end up going with.
In regards to the IVA, if you are struggling to make the monthly repayments and basically have no disposable income at the end of the month and you feel they manipulated your income and expenditure at the beginning to get the minimum payment required for the IVA to go through, then if you file for bankruptcy you can show this when you do your real income and expenditure, but you could try speaking to your iva supervisor and see if they can do anything with the payment.
To go bankrupt you do need the failure notice from the iva company that you are with. usually takes about 3 months missed iva payments for the IVA to fail, then you use this when you go bankrupt.
Its not all bad, at least you can show you have tried to make contributions back to the iva company when going bankrupt. if you do have disposable income then you may be subject to an income payment agreement, which is a set payment for 3 years.
hope this helps
Last edited by maxrobinson on Mon Nov 10, 2008 12:24 pm, edited 1 time in total.
I would definitely try and go for a variation of your IVA if possible. As Emma says you are halfway there.
If you were to allow your IVA to fail (3 months) and then go BR you could end up paying for longer than you would have if you stayed with the IVA. If you have more than £100 surplus income a month you would most like get an IPA as Max says. This runs for 36 months from the date of the first payment, not the date you were made BR.
Also, your credit rating will be shot for a further 6 years from the date of your BR.
One thing about an IPA - it's not actually set for 36 months - if your circumstances change then your IPA may change with payments going either up or down.
Last edited by Skippy on Mon Nov 10, 2008 12:48 pm, edited 1 time in total.
As Emma says the IVA expenses are not generous but even so, although tight, it does appear that you maintained the payments until your redundancy. If it was a struggle then they may have been too tight as it is not in the spirit of IVAs to punish the debtors.
The above posters are correct about the Income Payments Order but there also could be problems if you have assets which had been protected by the original IVA.
It appears that your IP is trying to resolve the situation and hopefully you will find employment soon. It would be a shame if the IVA had to fail after two years through no fault of your own as your IP would have to petition for your bankruptcy or distribute any surplus funds on hand. Thsi leaves you back at square one.
The IVA proposal would have been signed by you as your agreement to the terms of the arrangement including the level of repayments. I assume that at the time you entered into the agreement, you felt that they were affordable, but as everyone knows things are tight out there at the moment and there is no wonder that people in IVAs are feeling the pinch.
As the other posters have said, I would definately try to get the payments reduced, as you are half way through the repayment plan now and to go bankrupt will likely bring another three years of payments. Most creditors are pretty understanding at the moment with regard to variation meetings, so let your IP see if they can negotiate an affordable reduction in payments for you.
