I am in an IVA which is due to end next year.I was struggling to make ends meet and didn't want to ask for a variation to my IVA payments asI don't want to extend it. I took out two payday loans but now cannot afford the repayments and am frightened my IVA will fail. What should I do? I want to pay the money back but maybe through a repayment plan with the interest frozen. I'm really worried
I think you'll have to speak to both parties. I have seen posts on here where payday loans will freeze the interest and work out a payment plan.
I can't think of why any IP would want any IVA to fail it's how they put bread on their table.
If you can't make ends meet go through your I&E with your IP. I think under the latest protocols they can reduce your amount by up to 15% or up to a six month break at the supervisors discretion, not sure about earlier ones but most IP are flexible first time round but wouldn't fancy your chances if you did it again
Ohhh the five S's may help here. Sound sorry, say sorry and be sorry.
How many IVA payments would clear it, if you see what I mean?
Sorry to hear that. Things must be pretty bad as you have had to even consider pay day loans. I had borrowed money from friends when I was struggling. IVA was frozen while I was being treated for cancer. Mortgage company hounding me to pay etc.... When I could afford to pay they charged me £100 per month plus arrears.
That was 2yrs ago. Only 2days ago I found this great forum
Last edited by Rappy on Mon Sep 24, 2012 3:30 pm, edited 1 time in total.
You really do need to make that call. It is probably worth going through your income and expenditure to see if you can highlight why you had to go to the last resort of a PayDay loan. It seems there may well be a bigger picture here that needs to be addressed.
Hi, I am an IP and there is some very sensible advice on here. You do need to speak to your IP as this may be a breach of the terms. Tell them you were in difficulty and as advised be sorry. Come clean as soon as you can and they may be able to use a certain amount of discretion. As advised, no IP wants to see a consumer debtor protocol compliant IVA, for a number of reasons. We have to report all failed VAs on our annual returns to our governing bodies. Speak to the IP and explain what happened. It may be that a variation will be necessary so you may reduce the payments into the VA to cover the payments to the pay day loans. The pay day loans will not be covered by the VA. Hope this helps. Sam
