Hi All. thanks in advance for any help. I've just completed my 5th year of my IVA. Because I couldn't get a re-mortgage on my house I am now going into the extended 12 months. My wife lost her job 6 months ago and has been on job seekers allowance which comes to an end this month after which she will have no income. As I don’t have enough coming in to pay the IVA payment I guess it will fail at that point. Can someone please tell me what will happen if an IVA fails so late into the agreement?
If you can no longer maintain your contributions you should tell you IP asap.
I suggest you ask them to put forward a variation to accept your payments to date in full and final settlement and close your IVA and avoid failing it.
Alternatively they could allow you a payment break whilst your wife finds new income and extend it further again.
Best to avoid failing if you can otherwise, regardless that its been 5 years, you will be back to square one again and owe the whole of the remaining balance plus interest on the debts and could be at risk of Bankruptcy, which is best to avoid if possible.
Hi Lisa, thanks for getting back to me. I'll try that. I'm waiting for my latest wage slip which I should have next week so I can show how much exactly how much we have coming in before I get in touch with them. Its a joint IVA so I'm wondering if the IP may give a payment holiday to my wife (or even accept her debt as settled) and still ask me to make payments to my bit of the debt?
If your have no disposable income between you then your IP should ask your creditors to accept payments to date as full and final settlement
Please speak with your IP and demand that they go down this route
Lisa, Andy, Michael.. thanks for your help. I'll take the advice and ask my IP to ask my creditors to take payments made so far as full and final settlement. I'll let you know what happens.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Hi all. Update. Looking through our finances we worked out that we could only afford around £75 per month. (our original agreement was for £260). My Sister was able to give £1000 to me so I offered that as a final settlement to the account on 21st of Jan. However my latest annual report shows that I have paid all my creditors the full amount they had outstanding other than about £3K worth (3 creditors) who have not answered any of the correspondence since day one. I called in February and was told that the outstanding creditors had been sent out a letter on 17th of Feb asking them to get in touch and they had 14 days to reply. If they didn't reply then my IVA would be finished, no settlement required. I then called again today (14/03/16) and was told that my creditors have 61 days to get back? and just to keep paying what I can. Can anyone tell me if there is a set time/process for settling in this way ... and what it is? Many thanks.
Sorry to hear of all of your problems - I've no idea on this one.
Hopefully Lisa can come on and advise?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
61 days seems an awful long time to give someone time to respond to a simple request. In any event, unless Lisa knows of a statutory limit, if the letter your firm sent out stated 14 days, then 14 days it should be.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Hi - if your IP is referring to the statutory dividend notice to creditors then they are given either 21 or 28 days notice to put in their final o/s claims (sorry I can't remember the right number off the top of my head right now and don't have time to look it up)
either way I have no idea where the 61 days comes from.
They have
21 or 28 days (depending on your terms) to call any variation meeting
14 days potential maximum adjournment of the meeting
21 or 28 days notice of claims
up to 4 months closure process
