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Posted: Wed Jan 12, 2011 9:05 am
by Julian
we are losing a big chunk of our self employed income at the end of February which means from March we ill be about £350 a month down. How does a payment break work. Hypothetically if we asked for a 3 month payment break whilst we try and replace the lost work would those 3 months just be added to the end of the IVA? In July we will have completed 3 years of a 5 year IVA and all payments along with extras have been paid to date.
Posted: Wed Jan 12, 2011 9:18 am
by Broke of London
That's exactly right; payments will be tacked onto the end. Rather than take a full payment break you could also consider reducing your payments by the lost amount for three months. This will make it easier at the end...you may be able to make up the money in just one or two months for example. Some ips also arrange for missed payments to be repaid by a small uplift in subsequent moths if you feel you can afford to do that.
Posted: Wed Jan 12, 2011 9:55 am
by Tina Shortland
Hi Julian - the best thing you can do is talk it through with your IP to see what arrangement can be put in place to suit you. Hopefully it shouldn;t take too long to replace the lost work but do be realistic so you don't overcommit yourselves. Remember your IP should have the ability to alter your payments as well by up to 15% without formal acceptance by the creditors (depending on the arrangement you have in place) so if the replaced work does not quite make the same money you should be ok.
Keep us posted and good luck with building the work back up again.
Regards,
Posted: Wed Jan 12, 2011 10:36 am
by Adam Davies
Hi
There should be more flexibility with self employed people in IVAs to meet the ups and downs of income.
Have a chat with your IP, they will want to help you
Regards
Posted: Wed Jan 12, 2011 10:39 am
by leaKybrain
What does your report say, is there anything in there that covers the fluctuation of wages in self employment.
Posted: Wed Jan 12, 2011 1:12 pm
by Johny Cash
I had a similar situation. With authorisation from your IP the "arrears" so to speak will simply be bolted on to the end of the IVA.
In my case the IVA has a maximum life span of 72 months so if the payment break i took cant be equalized in this period due to I&E reasons then my IP said they would look to do a variation and write the differance off at the end of the term! Check the details of your IVA.
Put it to your IP. I dont think you will have a problem...