Posted: Sun Jan 28, 2007 12:28 pm
what if i am on a iva and say 10 months into the iva i get made redundant or lose my job
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what if get made redundant or lose my job
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Posted: Sun Jan 28, 2007 3:36 pm
you can request a vairiation metting from your IP
Posted: Sun Jan 28, 2007 7:19 pm
Hi Brian
There are several things that you can do in this situation.
Try and assess how quickly you are likely to be out of work, and how long your redundancy money will last for. If the answer is a few months, and your money will cover the income shortfall, then your IVA should continue to run as normal - you just pay your IVA payments out of the redundancy fund.
If you get to the stage that the money runs out and you still have not found work, then your IP could call a variation meeting to seek a payment holiday - but again you will need to assess how long it is realistic to ask for. I usually seek 6 months.
If after the 6 months you still have not found work, then it is likely that the IVA will have to be ended on the basis of your change of circumsances.
I hope that this does not actually happen to you, and that your question is merely hypothetic.
Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk
There are several things that you can do in this situation.
Try and assess how quickly you are likely to be out of work, and how long your redundancy money will last for. If the answer is a few months, and your money will cover the income shortfall, then your IVA should continue to run as normal - you just pay your IVA payments out of the redundancy fund.
If you get to the stage that the money runs out and you still have not found work, then your IP could call a variation meeting to seek a payment holiday - but again you will need to assess how long it is realistic to ask for. I usually seek 6 months.
If after the 6 months you still have not found work, then it is likely that the IVA will have to be ended on the basis of your change of circumsances.
I hope that this does not actually happen to you, and that your question is merely hypothetic.
Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk
Posted: Sun Jan 28, 2007 9:54 pm
Hello Brian, all the above is correct. REMEMBER an IVA is a very serious undertaken to be maintained for several months.
Good luck!
All I have left is my humour.
Good luck!
All I have left is my humour.
Posted: Mon Jan 29, 2007 6:59 am
Hello,
As Melanie says, if you fall into difficulty and are unable to make the payments to your IVA, it is possible to agree a payment holiday with your creditors.
The months which you miss will normally be added to the end of the agreement.
If during the period of your IVA your circumstances change for the worse, perhaps you change your job and earn less money, you may find that you cannot maintain the agreed payments. In these circumstances, the IP can ask your creditors if they will agree to vary the terms of your proposals.
If up until that time, you have maintained your payments without problem, your creditors may be mindful to accept such changes.
Note, if you are unable to re-start your payments at all, it is likely that the IVA will fail. Your creditors will then be able to take other action against you and alternative arrangements must be made.
Kind regards,
Julia
For more information about IVAs, please visit my website:
www.supersonicsquirrel.net
As Melanie says, if you fall into difficulty and are unable to make the payments to your IVA, it is possible to agree a payment holiday with your creditors.
The months which you miss will normally be added to the end of the agreement.
If during the period of your IVA your circumstances change for the worse, perhaps you change your job and earn less money, you may find that you cannot maintain the agreed payments. In these circumstances, the IP can ask your creditors if they will agree to vary the terms of your proposals.
If up until that time, you have maintained your payments without problem, your creditors may be mindful to accept such changes.
Note, if you are unable to re-start your payments at all, it is likely that the IVA will fail. Your creditors will then be able to take other action against you and alternative arrangements must be made.
Kind regards,
Julia
For more information about IVAs, please visit my website:
www.supersonicsquirrel.net
Posted: Mon Jan 29, 2007 11:29 am
What will happen if you get a job for significantly less than you are currently earning and you already only pay 25p per £.
Scooby
Scooby
Posted: Mon Jan 29, 2007 2:05 pm
Scooby
If you find a new job but the take home pay is less, then this will likely mean than you will not be able to maintain your agreed IVA payments.
Your IP will have to request a variation of your monthly payments to your creditors. If the creditors accept this variation, then you continue to pay your IVA at the agreed reduced rate. If the creditors do not agree the variation, then your IVA will fail and you may face bankruptcy.
If at the time the variation is presented to your creditors there have been no previous problems with your IVA payments (i.e. you have always paid on time and you are up to date) and the change was totally unexpected and due to no fault of your own, then it is likely that your creditors will accept this variation.
However, remember that creditors are much more likely to agree to a variation if you have alraedy paid your IVA for 18 months +. If you have only just started to make payments, the creditors may not agree.
James Falla
Expert in IVA, Bankruptcy and informal Debt Management solutions, with extensive experience of solving personal debt problems over the past 10 years. I am regularly featured on BBC News, Finance Programs and Radio.
Visit my blog at: http://jamesfalla.blogs.iva.co.uk
If you find a new job but the take home pay is less, then this will likely mean than you will not be able to maintain your agreed IVA payments.
Your IP will have to request a variation of your monthly payments to your creditors. If the creditors accept this variation, then you continue to pay your IVA at the agreed reduced rate. If the creditors do not agree the variation, then your IVA will fail and you may face bankruptcy.
If at the time the variation is presented to your creditors there have been no previous problems with your IVA payments (i.e. you have always paid on time and you are up to date) and the change was totally unexpected and due to no fault of your own, then it is likely that your creditors will accept this variation.
However, remember that creditors are much more likely to agree to a variation if you have alraedy paid your IVA for 18 months +. If you have only just started to make payments, the creditors may not agree.
James Falla
Expert in IVA, Bankruptcy and informal Debt Management solutions, with extensive experience of solving personal debt problems over the past 10 years. I am regularly featured on BBC News, Finance Programs and Radio.
Visit my blog at: http://jamesfalla.blogs.iva.co.uk