I have been in an IVA since Jan 2007, in Dec 2008 i asked about trying to reduce my payments because of the cost of living but was not accepted.
I have been unable to make payments since July this year due to redundancy and have just completed an annual review that shows that i have no income disposable or not.
Although my IP have now acknowledged this, they have not been forthcoming with any advice. I am worried about what will happen next year with an increase in tax and every rising cost in fuel and other bills.
Are there any guidelines for the IP to follow because of the changes in the cost of living. Are they any guidelines i should be looking at.
Hi
Most IPs will use the CCCS guidelines when proposing an IVA.
Are you working at the moment ? do you have any funds left from your redundancy ? are you a homeowner or renting ?
Regards
After i was made redundant i continued to make my contributions however with no income the funds soon disappeared. I am renting and not working at the moment although I have been trying to find a job it has been more difficult than I expected and don’t know how much longer it is going to take.
Given that you have not paid your IVA contributions since July this year, you have no further funds and you do not know when you will be back in work, I am surprised that your IP has not discussed failing your IVA with you. You should give them a call and find out what their intentions are.
Given you are renting and therefore have no property to lose, perhaps you should consider declaring yourself bankrupt. You would not be expected to pay anything towards the debt unless you can afford to do so which would mean you could put any income you do have towards your living expenses.
If you are in the middle of an IVA but then can not continue to make the monthly payments and have no other funds with which to settle the arrangement then your IVA cann not simply sit unpaid. In these circumstances, an IP will often have no other choice than to fail the IVA.
If this were to happen, then you would still be responsible for repaying your debts in full and would have to consider other arrangements for dealing with them.
I think you should speak to your IP and find out what their intentions are. As I mentioned before, given you have not made a payment since July I am most surprised that your IP has not taken further action already.
It sounds as if your IVA has already failed, and unless your IP is prepared to vary it to seek a longer payment break, then it will have to be concluded. Which firm are you with?
