IVA's seem so precarious.
If your circumstances change and the request of lower payments goes to a meeting, can the IVA be cancelled at that point?
If so, sometimes it seems better to suffer and starve and get on with it.
Doesn't seem right.
Is there an option to continue if a request to make lower payments is rejected?
And your IP can reduce your payments by up to 15% without calling a creditor meeting. And there is the flexibility of payment breaks if you are made redundant, on maternity leave etc. I guess the point is that your expenses should not be rising faster than your income...after all, this couldn't happen in the real world without racking up debt and we are supposed to be learning the "live within your means" lesson. But I do empathise with the feeling of being on the edge of a financial precipice!
An IVA is a contract and nothing more than that. If any contract is set to run over a lengthy timescale, there may be some risk that circumstances will change and the contract will therefore need to be amended. This does need the agreement of all contracting parties - as with any other contract - but if rejected it does not mean that the original contract is invalidated.
It would be the original debt minus whatever dividend creditors have already received. Bear in mind that you would be responsible for paying the management fee (unlike in an iva) so you would repay 100% debt plus dmp fees. And in some cases interest and charges continues to be applied to the debt.
Are you struggling with your payments or expecting your circumstances to change?
I've just made the connection with your other thread. The f&f does seem the most sensible option in your situation. Tho if it's not accepted it is possible to manage an iva and rent on one income - you'd just need to revise the arrangement so it's affordable for your new circumstances. Best of luck with the offer. When is the meeting?
