We have had a kitchen fitted which had a pay later option, i am now looking at doing an IVA but obviously still owe the full amount to the kitchen / finance company - as payment doesn't start until october - what happens in this instance ?
This debt would form part of the IVA as it is almost certainly unsecured. However, the creditor may not be prepared to support the arrangement if they feel that you borrowed when in financial trouble already. Other creditors may also form the same opinion as may the Insolvency Service should you decide to petition. Given the fact that not one payment has been made a DMP may be a better option at this time.
However, if you could show that your circumstances have deteriorated dramatically since the kitchen was bought it may be possible to propose an IVA. Speak to your IP and made him/her aware of the kitchen debt. They may be able to canvass the creditor for their opinion before putting the proposal forward.
If you have not already sourced an IP, I suggest you do so as soon as possible. Visit www.iva.com for a list companies and reviews, or click the experts link on the left hand side of the page. We have some who post on here who come recommende.
They will advise you as to the options open to you and the advice is free.
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I agree with Michael, if nothing has changed since you took your agreement out then you may struggle, however if you have had an unforseen change in circumstances since then, for example redundancy, loss of hours etc, then that is a different case entirely.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
In my experience, the debt will just get added to the list of creditors, and the creditor will be bound accordingly - and are unlikely to make a huge fuss - but the guys are right in that there may be some risk of rejection if the amount you owe is material to the aggregate.
