www.iva.co.uk

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.

Hi h.o - sorry to hear you are out of work at present. Hope you find something soon. Are you receiving all the benefits you are entitled to? Housing benefit etc?

I would be tempted to go for a variation meeting myself. If your debts have been sold on (as have most of ours) these companies can pick up these debts for a pittance so they may actually make money from the IVA.

Go for it - they can only say no. If they do then your IP hopefully will swing it for a reduction in payments.

Hi,

I would go for the latter if you cannot afford to spread the payments across the remaining term.

They can only say no but I would think as you have come this far that they will be happy to accept what you have paid in so far.

Hopefully one of the experts can advise further.

They are unlikely to make you bankrupt as you have no assets of enough value to give them any decent return (usually a house with sizeable equity will tempt them).

Thank you for your input so far, I can't really see any other option than offering "Paid to Date" because we simply cannot feed the kids and pay the IVA's.

NOTE TO ADMIN: Please can you change my username and remove any reference to it from this thread?

The one you have given me is actually an old nickname from school and with the information I have posted it is easy for people who know me to work out who I am! We are keen to keep our financial woes private so please HELP!

What name would you like? I can do it asap.

I've changed it to h.o at the moment -if you want anything else then just let me know.

Kazza will need to edit her post, unless you have the power, Jan.

done!!

I've just changed the name so hopefully the OP will tell me if they want a different name putting down.

aaaah .. teamwork :0)

You can't beat it!!

Thank you, that name is fine!

I'll leave it as it is then!!

I would go for the second option as you have clearly stated you can't afford to pay the monthly contributions anymore and if you are struggling to find a job then that won't help either. Are you getting a redundancy package? Some of that redundancy money could be used to offer a full and final if you are