some of iva debt.can i change to another company!
Have you spoke to your IP directly about your concerns? Sometimes when you phone you speak to someone on the team and to be honest you don't always get the answers you deserve.
Why don't you email your IP a list of your concerns - that way you'll have a record of your correspondence.
we have number of things we are going to do in 2010 we are meeting with the bank in a few weeks with a business plan i am very hopeful we will return to a better position and start make profit but i feel that grant-thornton do not seem to understand we cannot pay back creditors unless we make enough money from the business we do need one more month not paying the iva which is £716.00 per month making three missed payments.
thank again for your reply
Grant Thornton are a firm with a very good reputation in this industry, and I know the insolvency practitioners there very well. If your need to miss the payments is a temporary one, then it is reasonable for your IP to expect those arrears to be made up over time - but if you can demonstrate that it would be impossible for you to increase your payments then they should be added to the end of the IVA.
Have you thought about trying any other way of finding the money - friends or family, mortgage payment holiday?
Unless you earn overtime I can never see how anyone can be expected to pay extra each month to catch up on arrears ? Afterall in an IVA you are paying 100% of disposable income so tagging any missed payments onto the end seems a far more sensible approach.
Why not have IVAs where a debtor has to make 60 payments over 72 months ? this will leave room for payment breaks as and when needed.
Not sure I am a fan of the opportunity to miss up to 12 payments over an IVA period. I find that the regular nature of payments is what keeps people on track. The cynic in me says that IPs would not receive any payments in December if that much flexibility were to be brought in!
But would that be such a bad thing Mel ? It would help with the unexpected bills, help out at Xmas etc.
The IVA could finish anytime between month 60 and 72, just as soon as the 60 payments had been made.
People could manage their own IVAs without the need to go back to the IP, obviously there would have to be conditions, eg no not more than two missed payments per year, no missed payments in first six months etc etc
I guess I equate an IVA repayment plan in the same way as I equate the loans taken out in the first place. They were based on regular monthly repayments under contract, and so is an IVA. And I do think that the discipline of regular payments helps people to keep on track.
I know these views will not be popular with forum posters who are in IVAs at the moment, and would stress that my response comes from an IP perspective. I am sure if I were to be on the other side of the fence I would fully support Andy's suggestion!
I think the problem is that IVA payments are often too tight from the beginning which causes the problems. If the IPs were left to do their jobs properly and propose IVAs that are affordable and sustainable, clients would not get into difficulties as often. Clients would then be less likely to need payment breaks or reductions as the income and expenditure accounts would allow for contingencies.
Agreed Michael, realistic expenditure allowances are the key.
However the reality is that MANY people struggle with their IVAs due to tight budgets and unforseen problems and that many just can't speak to their IP to get the help that they need.
Variation meetings are time consuming and costly, I think that IPs need to be given greater flexibility and authorised missed payments tagged onto the end of an IVA must surely help everyone concerned ?
This is not by any means putting the blame on IPs because it is quite obvious that it is down to the creditors imposing stricter and tighter regimes.
Leaving it to the IPs and their staff to work out what is afordable & realistic for the debtor has got to be the sensible option!
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