better to just grit our teeth, pay the money

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tracy.re

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Post by tracy.re » Fri Aug 20, 2010 2:03 pm
We have been in an IVA for 3 years now and had our second child in November 2009. I have just returned to work having been on maternity leave for 9 months, during which time we reduced our IVA monthly payment from £640 to £320 with the agreement that we would add the total deficit to our monthly payment for the remainder of the term once I returned to work. We have really struggled each month but in April my husband received a £2,000 bonus from work which really helped with the additional living costs associated with a new baby and nursery fees for our 4-year-old. We have just completed our six month review and obviously declared our incomings and outgoings which, when calculated, left a small monthly deficit (even taking the bonus into account). However, our IVA provider has now written to us asking for £900 due to us receiving this bonus. We realise that they are quite within their rights to do this and we do not want to "rock the boat" as it were, but we really cannot afford to pay this amount. Is it advisable to write back telling them this (and what is the best way of wording it?!) or are we better to just grit our teeth, pay the money and struggle on? Thank you.
 
 

Michael Peoples

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Post by Michael Peoples » Fri Aug 20, 2010 2:11 pm
Hi Tracy and welcome to the Forum.
Your IP company does have to request the money as it is part of the conditions of your IVA. If you do not have the money it could potentially lead to a default and ultimately your IVA could be failed.

Speak to your IP and try and reach an agreement and possibly the payments can be added on at the end. This may need approval of creditors and another meeting may have to be held.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
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