www.iva.co.uk

Hi,

We have run into difficulties with our IVA and are now about 4 months in arrears with it. We are 2 years into it but had a baby after 1 year which is why we are now struggling with the payments. We agreed to pay 86p in the £1 back to our creditors when we started. I would now like to renegotiate a lower payment but our Supervisor said he isn't confident that it will get approval as we were ONLY paying back 86p in the £1. Has anyone else renegotiated and found difficulties and is 86p really a Low amount to give back? The alternative was bankruptcy where we would only be giving back around 20p in the £1 so even a lower IVA payment would still be preferable to them surely.

hi hawks1980....hope someone comes along with more advice for you..welcome....

Hi Hawks1980 and welcome to the forum.

It does sound as though you are struggling with your payment, and you are giving your creditors a good return as well. Hubby and me are only paying back 69p between us, and there are a lot on here wth lower than that.

I would do a new I&E and send it to your IP and ask him if he can put it to the creditors that you need your payments lowering.

As you say, they are getting way more than they would with bankruptcy, so it won't hurt to put it forward. They can only say no.

You need to do something quickly though, if you are 4 months in arrears, it is likely that the IVA will fail as you are only usually allowed to miss 3 payments.

If you dont own your own property wats stopping you from going bk,the way things are in this country right now we might all be thinking of it

If I were acting for you I would be pretty happy to put a variation for you to accomodate your change in circumstances - after all a varied IVA would probably give a higher return than bankruptcy. At the end of the day these things are at the discretion of your creditors, so it is usually sensible to put a varied offer in front of them - whether you are confident or not - just to see what they say. Nothing to lose!

I assume a variation would involve more work for an IP and may be the reason for your IP being reluctant to do so. Given your fairly high rate of return I would certainly hope that a new I&E would show a more realistic monthly payment figure for your IVA,which will allow you to carry on with life without struggling to cover the extra costs incurred when a little'un comes along.

It does not matter if it is more work for the IP.

If a debtor is experiencing difficulty and wants the IP to put forward a variation to the terms of the arrangement, they should formally request the IP do so. If the IP is using the R3 Standard Terms and Conditions then he has a duty to convene a meeting of creditors. Frankly I'm astounded that an IP should be reluctant to put a variation forward on the grounds they have given. I suspect you may not have been communicating with anyone of experience or a work shy person, from the firm that you are using. As Melanie suggests there is nothing to lose by putting the variation forward.

I would first sit down and review your current income and expenditure and work out your disposable income. Then let your IP see how that translates through to the remaining duration of your arrangement and advise you of what the new revised outcome would be.

You could also discuss an extension to the term of the arrangement as a way of some compensation for the potential lower return.

I could not agree more Cybus!

Well good news!! We have only just found out last week that they have decided to allow us to renogotiate our terms!! We feel so much better about this all but its been a long time coming- considering we requested this in July!!!!! But we are [:D][:D][:D]

aw brilliant news hawks good for you !
stick around ok x [:p]

Fantastic news Hawks, and not before time as well!

Let us know how you get on.

That's really good news, don't forget to let us know how it goes x