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Hi All

Have been in an IVA for almost a year. Had a payment break in June as my husband lost his job and his employer deducted sick leave off leaving us about £270 short. His four weeks notice money has just been paid with deductions of almost £500 sick and commission clawbacks leaving us in a bit of bother. Also, he hasn't found another job yet and we have to move in two weeks as our house that we rent at the moment is being sold..............having begged and borrowed the deposit. What are our options now, do we pay this month and leave ourselves with hardly any food or living money or do we miss another month.

Also, can IP fail arrangement on this basis, hopefully hubby will have a job soon, has interviews and stuff but nothing certain.

Advise gratefully appreciated.

Good morning Gemini,


I suggest you contact your IP as soon as you can and explain to him that ypur husband has not managed to find a job yet and explain the fact that you need to move house very soon.

It is important to keep up payments as serious defaults can result in the failure of the IVA and may lead to bankruptcy.

A revised income and expenditure schedule might be requested, based on the change in circumstances. If necessary, the Supervisor will call a further meeting of creditors to request a change to the original payment plan.

During the term of the IVA, in an emergency situation, you may be allowed to miss up to two payments, but only with the Supervisor and creditors permission. Missing payments without permission is deemed a default of the IVA.

Kind regards,



Julia Simavi

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I agree with Julia, contact your I.P as soon as possible.

It is important that your I.P is kept fully aware of the change in your circumstances, they are in the best position to advise as they know the terms and conditions of your IVA proposal.

It is almost impossible for your circumstances not to change over a 5 year period but sometimes creditors will put a clause in the IVA proposal that a variation meeting cannot be held within the first 24 months.

Contact your I.P and please post your outcome.

Best Regards. IVA Experts

Many thanks for all your help.

I am panicking a bit..I will try to give them a ring asap.

Thanks again[:)]

Hi
I would think that under the circumstances your IP will allow you another months break and allow you to tag it onto the end of your IVA.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

If your husband has no prospect of finding work soon, then you might want to ask your IP about the possibilities of varying the arrangement to take account of a longer payment holiday - say for six months. This can only be done by formally varying the arrangement, and calling another creditors meeting, but creditors generally are largely understanding of these things and you would probably be successful.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Thank you all

My husband is going to ring them today!

Hopefully we can sort something out otherwise the arrangement will have to fail unfortunately.

This forum is a godsend!!

Glad that you have found this forum useful gemini!!!!

Best Regards. IVA Experts

Hi gemini68
Hope things are sorted ou for ya.

So if u take a break does it just go on to the end of ur IVA, or will ur payments go up?????

Hi
A one to two month break can be authorised by your Ip and you can agree to tag it onto the end of your IVA or increase the remaining payments.A break longer than this will require a creditors meeting.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp