www.iva.co.uk

Hi everyone, hopefully some of you can offer some advice....Hubby and I are almost 2yrs into our IVA's. hubby set up his self employed homeworking business in may this year, as its still all very new its not yet generating a regular wage, (tho hopefully it will at least pick up a bit in 2013) and I'm only on a 10hr pr wk contract working in a supermarket, altho I do get occassional overtime. Due to the circumstances Payplan have been very good with us and allowed us both to take a 6 month payment break on our respective IVA's. We're due to restart our payments in Feb 2013 but were not sure that we'll be able to keep up with the agreed payments, if we can't will our plan automatically fail and will we be forced to go bankrupt??? Or on account of our low income would payplan be able to offer us lower repayments. Our total of both IVA's is about 26k and we pay a total of £300 pr mth into those. Our total income is approx £1000/£1100 pr mth inc tax credits paying everything out of this is really tight.
Seriously wondering if bankruptcy is going to be our only option but don't want to lose the house altho would this happen if there is no equity in it??
Does anyone have any advice on what to do next, we are both starting to stress even more than normal about our finances.
Thanks
S

You should approach Payplan about a further extension to the payment break to see if things improve in the next six months. Alternatively, it may be possible to ask creditors to accept what has paid to date as full and final settlement or perhaps a full and final may be possible if you raise some third party funds. Bankrupcies would cost up to £1400 in fees and creditors may accept this rather than get no return at all.

Hi Michael,
Thanks for your reply. We didn't realise a further payment break would be an option as when we arranged it we were told our plan had maximum payment break of 6 months during the whole term of the IVA. Also we didn't know a full and final could be a possible option at this stage of the IVA as presumably the creditors don't receive all of what we have paid to date and to be honest I thought that was only if you were in the position to offer a lump sump payment which we wouldn't be. We will update payplan before our payment break ends and see if they can offer us some kind of solution! Many thanks for your advice.

Fingers crossed it goes well but it might be worth mentioning to Payplan now as it will probably require a variation and meeting of creditors. I see others saying Payplan have a three month backlog for variations so get in now.

Thanks again Michael...we will get on to payplan asap.

many thanks