www.iva.co.uk

Hi,

First time on here so here goes.

Separated with my wife a little while back and we've been keeping up our repayments on our IVAs (we've one each and are paying about the same back in each month).

Now split looks permanent and I'm living in rented accommodation it's been a bit more difficult and the purse strings are having to be really squeezed.

My IVA's coming up for annual review and I don't know whether to carry on as per normal for as long as I can or tell them the situation and ask if I can work out reduced payments or extend the IVA.

Or will they just expect us to pay the same amount even though we're separated.

Anyone with any advice on what I should do.

Thanks
M

If your circumstances have changed and its causing you to struggle with the IVA payments it would be worth a call to your IP to discuss the options.
It could be that they can have the arrangement varied to suit this change in circumstances.

There are probably 2 issues:

Firstly, the contributions - If your income and expenditure has changed and you can't afford to make the contracted payments then you can ask the Supervisor to call a meeting to vary the IVAs. That will simply be a commercial issue, and will depend on whether the creditors are happy with the reduced return.

Secondly, and not always considered is the fact that, whilst there is no such thing as a joint IVA you probably have entered into interlocking IVAs where assets and liabilities are "pooled" and the success of each is dependent upon the success of the other. That might not be appropriate any longer, as depending upon your circumstances one of you might as an example see bankruptcy as advantageous whilst the other might want it like a hole in the head. So it might make sense for the variation to sever the link between the 2 as well so that in the future each IVA stands or falls on its own merit.

The first point is straightforward I think, simply the sums. The second will take into account a number of factors and needs to be thought about.

Hope this helps

ian

Thanks very much for your prompt reply. That's really helpful and yes, you're quite right Ian, it's an interlocking IVA like you said, where our debts were pooled.

I will get on to my IP next week. If we could get some relief it would be great. We've never missed a payment so hopefully things can be made a bit easier.

Many thanks
M

I'm sure your Supervisor will understand what I've been getting at. Not saying it's necessary to sever but clearly something you need to consider.

Good luck and don't hesitate to come back if you need anything else.

ian