www.iva.co.uk

Hi. I have been in my IVA for around 2 1/2 years and I have come to the point where I just cant keep up payments. I dont have any assets i.e. I dont own my home and I dont have an expensive car. I took a payment break last year when I was out of work (only a week) and my IP has now said that I cant take anymore. I have had enough of it and want it to end! My partner has had enough of it too and Im afraid I am going to lose her. I realy am at my wits end. Please, any advice or guidance will help.

Hi Shanks and welcome to the forum.

I'm sorry to hear that you're having problems with your IVA. Have your payments risen since your IVA was agreed? If so as far as I'm aware your IP can reduce the payments back to the original level without calling a variation meeting.

If that's not possible have you spoken to your IP about a variation of your payments?

I would definitely try and speak to your IP (not a member of their staff) as you are halfway through your IVA. If you were to go BR now you may get an Income Payment Agreement which would run for 3 years, and your credit rating would be shot for 6 years from the date of the BR order.

Hi Shanks,

Great advice from Skippy.

If you left the IVA how much would you owe to creditors and what could you realistically offer to your creditors each month via a debt management plan?

The answers will help others on this site to compare options such as bankruptcy or a debt management plan.

Hi. Thanks for replying so quickly.

My monthly payments have risen by £25 per month each year, the first year was £275 pcm and now its £325 pcm rising to £350 next year and £375 in the final year.

I normally deal with one of the administrators as Im not really sure who my actual IP is! Would that be the Supervisor?

Ive heard alot about DMP's, what would one of those entail?

Also when you say Income Payment Agreement in terms of BR, what does that mean?

I currently owe £11'200.00 and I could comfortably offer £200 pcm

The Supervisor is the IP, and I think that a DMP would work very well for you if you prefer to not consider bankrutpcy.

DMPs are known to be a little more flexible than IVAs, although you do not get legal protection or guaranteed interest freeze - and could be worth looking into as an alternative.

Ok cool. If I was to consider a DMP, how would I go about starting it?

speak to andrew graveson on here he is highly recommended

Also, how long would a DMP run for.

I really do appreciate all your help, it really is a relief just to talk!

The timescale would depend upon a number of factors such as whether you went with a fee-paying or charitable company, whether creditors stopped charging you interest, and the level of your available disposable income.

Why not have a chat with Andrew to see if he can help directly.

an expert will advise more i am not sure what happens to the monies already paid into the iva it just seems a shame to get halfway and for it to get too much

Ok thanks, Ill have a word with Andrew Graveson

A DMP would run until the debt was paid off in full. So if you owed £11,200 and were paying £200 a month the DMP would last for 56 months, providing no interest was added and no fees were charged by the DMP company.

i would think if you had a chat to your ip and told him what you are thinking of doing with a DMP and also the possibility of going BR and the creditors ending up getting far less money he maybe able to come up with a solution

good luck which ever way you go

£11'200 is what is left to pay the IVA off, is that the amount that would go across to the DMP?