www.iva.co.uk

Our IP has finally agreed to look at a variation meeting as we are continuing to struggle with payments due to an increase in costs, and regularly going overdrawn by as much as £300 a month.

Proposed figures suggest about a 45% reduction from our original payment, although still providing a return of well over 30p in the pound.

If agreed, will the creditors want to add the shortfall on at the end by extending the term of the IVA?

Or does a variation mean that the new figure replaces the original agreement, and we continue for the remaining 3 years as planned?



Thanks

Not sure of the answer but you may be expected to extend your IVA for longer - good luck !

You may well have to carry on until you reach the original dividend, unless the creditors are agreeable to a lesser one.

If that is the case Kallis, we will be still paying in 10 years time.

I think now is the time to seriously consider bankruptcy.

Thanks

I don't really know what will happen - the creditors may well agree to a lesser dividend if the alternative is that they get next to nothing.

Do you have any assets which would be at risk if you went bankrupt?

Be sure that is the right decision for you - you have paid in until now.......going bankrupt could land up with you paying for a further three years - try for a variation first.....also your credit rating with shot for a further six year period from date of your bankruptcy hearing ........speak with your IP for solid advice......good luck.

You seem to have been making a high return in the first place....therefore in the current climate your creditors may be happy to accept lower payments for the remaining term rather than nothing !

is your credit rating bad for a further 6 years if you go br 2 years into an iva

It is - it's as though you have started again I'm afraid.

If the creditors want to add on the shortfall, it will extend the IVA by as many years as bankruptcy would affect us.

We are in negative equity with the house, and have a knackered old van for all the kids (worth less than £1000)

We could have gone bankrupt in the first place, but wanted to repay what we could as we have a decent joint income.

Keeping our fingers crossed they accept the new proposal.

Thanks

I assume that your IP is trying to get you a variation based on reduced payments based over the same timescale as the original proposals? If so, there should be no extension of time.

That has not been discussed. What would be the usual way forward with this Melanie?

Thanks

You need to have frank discussions with your IP as to what you wish to offer to your creditors. It is your variation not theirs - but they will guide you if what they feel you are offering is unreasonable.

Ok, thanks.

Will try and speak to them this week.

A variation can be anything that is reasonable, just and fair based on your individual circumstances now that gives rise to such variation. You must discuss all these things with your IP and see what he suggests.

Good luck and let us know how you get on.

I have just had a variation accepted and the term hasnt been affected the payment just gets reviewed as usual every 12 months