Posted: Sat Jan 21, 2012 2:18 pm
Both my Wife and I have had IVA's since late 2005. Currently they have around 18 months still left to run because we had the IVA term extended when my wife was made redundant, making the monthly payments more affordable at the time.
Unfortunately I was made redundant at the end of last year and my wife cares for our two young children so we currently have no income apart from benefits and I have been unable to meet the last two months payments.
We simply cannot afford to pay the current amount any longer unless I find a job, which is proving very, very difficult.
I have spoken to PayPlan (our IP), and they have said that we really only have two options, 1. Spread the arrears over the remaining term (which we can't afford!) or 2. As we have paid over 80% of what was expected into the IVA, asking the creditors to accept what we have "paid to date" as full and final settlement.
I believe only option 2 is viable as we cannot eat and pay the IVA's as it stands!
My question is, how likely are the creditors to accept this kind of proposal? Is over 80% a "good" figure? We really have tried every option to keep it paid!
Also, what would happen if they said "No"?
The other thing that concerns me is that if either of us is made Bankrupt we will also become homeless as it is written into our AST that the rental contract is null and void in that situation.
In terms of our creditors, most of it has been sold to Max Recovery, some to Grant Thornton (IVA Watch), and the rest is HSBC and American Express.
Unfortunately I was made redundant at the end of last year and my wife cares for our two young children so we currently have no income apart from benefits and I have been unable to meet the last two months payments.
We simply cannot afford to pay the current amount any longer unless I find a job, which is proving very, very difficult.
I have spoken to PayPlan (our IP), and they have said that we really only have two options, 1. Spread the arrears over the remaining term (which we can't afford!) or 2. As we have paid over 80% of what was expected into the IVA, asking the creditors to accept what we have "paid to date" as full and final settlement.
I believe only option 2 is viable as we cannot eat and pay the IVA's as it stands!
My question is, how likely are the creditors to accept this kind of proposal? Is over 80% a "good" figure? We really have tried every option to keep it paid!
Also, what would happen if they said "No"?
The other thing that concerns me is that if either of us is made Bankrupt we will also become homeless as it is written into our AST that the rental contract is null and void in that situation.
In terms of our creditors, most of it has been sold to Max Recovery, some to Grant Thornton (IVA Watch), and the rest is HSBC and American Express.