www.iva.co.uk

Hello

I am currently in an IVA but due to losing two jobs this year i have fallen behind on my payments. I missed some last year too and now payplan have advised me that i have to make 5 payments of £250 and then my payments increased to £532 in march next year so the iva will end on time in october 2011. Previously we have asked for an extension but the creditors rejected it.

I''ve been told by them that if i don''t make these payments my iva is likely to fail and i could be forced into bankruptcy. Im training to be a legal executive and working in the legal environment ive been advised bankruptcy isn''t an option unless i want to risk my job and my future.

What options do i have left?

Sorry to hear of your problems.

So i take it you have been in one for 2 years? are you able to make the payments of £250 for 5 months?

It seems very harsh of creditors not to allow you a variation considering you are trying your hardest it isn`t your fault you lost your job

I find it hard to see how creditors will gain by rejecting to grant an extension because if you were to lose your job with BR they would end up with very little in return

It is very rare that you are forced into BR as the experts will advise normally you end up going onto a payment plan.the experts will be along shortly i hope they have some ideas for you

good luck

It is ridiculous for your IP to demand that you make payments that you cannot afford. If neither they, nor your creditors, will accept a reasonable or affordable repayment plan - given the circumstances you describe - then you could enter into a DMP. However, I would suggest that you present your IP with a current statement of income and expenditure, and insist that they put a variation to extend the IVA to deal with the missed payments. In the current climate, I would be very suprised that this would not be accepted.

I agree with Melanie. You cannnot and should not be expected to make payments to the arrangement at a level that you cannot afford.

Like Melanie says you should insist that your IP returns to creditors and asks them to accept either a reduced offer of repayment or an extension to the arrangement to deal with the arrears.

How long is it before you qualify? When you do it will potentially increase your earning power and allow you to easily increase the payments to your IVA. If this is pointed out to creditors it may give them further incentive to accept the variation.

thanks so much for the advice, its certainly helped my stress levels

i will contact my IP admin and say whats been suggested

creditcrunched yeh i can afford the 250 with some sacrifice but the 532 is impossible and no matter what ive previously said to my iva admins they don't seem to understand

liberta im qualified in about 2 years and then my wages will increase a lot, im some firms they would virtually double so id be financially a lot better off. ill make sure i mention that to them too and see what they say

The fact that your salary will double in two years should be pointed out to your creditors when the are asked to accept the variation to your proposal. The possibility that the outcome for them could be substantially increased will be hard to dismiss.

I've spoken to my iva administrator and she has advised that she will look into a variation but if that is not accepted then I can look into a dmp plan.

Do I need to stay with the company I'm with to do that or could i move elsewhere? Who is good?

You could shop around for an alternative DMP provider - Andrew Graveson at Brightoak is highly recommended.

Hi Karenp.
I hope that your variation is accepted as a DMP could still lead to bankruptcy. Some creditors who purchase insolvent debts can be quite aggressive once an IVA has been failed and the legal protection removed.
If the variation is rejected another IVA can be proposed so I would advise that you speak to another IP in addition to proposing a DMP to offer yourself the fullest protection.

Good luck and let us know how you get on.

Hi Karenp, I noticed in your last post that you have spoken to your IVA administrator. Have you spoken to your actual IP? It might be worth a try as they might not be aware of what you have been told.

Good luck, and let us know how you get on x

i have a further question, can i be forced into bankruptcy if it means a loss of job and career...im only qualified for law and surely it would be counterproductive to force a bankruptcy through

i hadnt thought of speaking direct to the IP, i dont even know their details i dont think

It will depend upon the terms of your IVA Karen - if the supervisor is obliged to petition for your bankruptcy then they have to do this, but there is nothing to stop them reverting to creditors for directions, as these days the main lenders would rather the IVA failed and you entered into direct repayment terms with them rather than seeing your bankrupt - and in light of your profession this would seem to be the most sensible thing to do.