Coronavirus and your IVA

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Foggy

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Post by Foggy » Fri Mar 20, 2020 8:56 am
Many people now will be worried and wondering what to do if the virus currently circulating affects their ability to work or reduces their income or, even, increases outgoings and the advice I would give and emphasise is, at the first signs of problems, contact your IVA provider.

Many arrangements have provisions for reducing payments, either temporarily or long term. They also have provisions for providing payment breaks. If there are no such provisions already incorporated in your agreement, then the IP can convene a creditors meeting to get such provisions applied, by agreement with creditors.

DO NOT PANIC ---- all firms will be getting a higher rate of calls during this time and many have staff working from home, so they may be a little delayed in getting back to you, or getting provisions put in place, but the important thing is to get the ball rolling ....pop the puimple before it becomes a boil !

Remember, it is in nobody's interests to allow an IVA to fail. Creditors and IP's alike are well aware of the situation we all find ourselves in and will do all they can to assist.

Even if you don't have the figures yet, or your situation is unsettled, reach out, get the conversations started.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

luluj

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Post by luluj » Sat Mar 21, 2020 7:11 pm
I was thinking of posting similar Foggy.. am sure there will be lenancy shown during this time.
Sharing from experiences of dealing with debt

There is a solution for everyone .... Just need to stay positive !

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kallis3

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Post by kallis3 » Sat Mar 21, 2020 7:21 pm
I agree.
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.
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Clempo1980

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Post by Clempo1980 » Wed Mar 25, 2020 3:57 pm
Hi
I have just emailed the company that deal with my IVA asking them to park payments for 2-3 months as I have just been informed that I have to take a 20% pay cut for the next few months, very worrying times.

Foggy

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Post by Foggy » Wed Mar 25, 2020 4:07 pm
Wed Mar 25, 2020 3:57 pmClempo1980 wrote:
Hi
I have just emailed the company that deal with my IVA asking them to park payments for 2-3 months as I have just been informed that I have to take a 20% pay cut for the next few months, very worrying times.
Hopefully they will agree -- I think this is a very sensible plan for many at this uncertain time. As well as the prospects of reduced incomes we are all have greater expenses in the way of getting food where and when possible, without the luxury of price comparisons and special offers, and parents having increased utilities with kids home all day.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

lisakent86

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Post by lisakent86 » Thu Mar 26, 2020 7:24 pm
It's a relief to know this information.

Sammysled

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Post by Sammysled » Fri Mar 27, 2020 7:03 pm
Hi. Well I've been on an IVA for almost a year now and I'm self employed. Obviously with the lastest Corona virus news it's highly likely that I'm going to have to go bankrupt. Unfortunately I cannot wait till June to get money from the gov and the 93 universal credi is gonna do nothing for me.
I'm in. The extremely lucky position to be able to move in with parent until this is sorted and have no assets. I was just wandering if you had any advice of what to actually do next? I haven't missed any payments yet but my bank is basically imobilised and it's gonna happen very soon. With no support in site I figured it's best to just bite the bullet. Any advice would be great. Many thanks

Foggy

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Post by Foggy » Fri Mar 27, 2020 8:11 pm
Fri Mar 27, 2020 7:03 pmSammysled wrote:
Hi. Well I've been on an IVA for almost a year now and I'm self employed. Obviously with the lastest Corona virus news it's highly likely that I'm going to have to go bankrupt. Unfortunately I cannot wait till June to get money from the gov and the 93 universal credi is gonna do nothing for me.
I'm in. The extremely lucky position to be able to move in with parent until this is sorted and have no assets. I was just wandering if you had any advice of what to actually do next? I haven't missed any payments yet but my bank is basically imobilised and it's gonna happen very soon. With no support in site I figured it's best to just bite the bullet. Any advice would be great. Many thanks
The 'Catch 22' about you going bankrupt is that it will cost you £750 upfront, unless one of your creditors make you BR or unless there is a clause in your IVA that the IP makes you BR in the event of failure ( which some proposals do contain).
Going BR right now will not give you any real advantage, if you get CF to agree to a payment break for a while, except that you will, of course, not have to resume payments to the IVA when matters improve, though you might have to start similar payments to the receiver in bankruptcy.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

Sammysled

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Post by Sammysled » Fri Mar 27, 2020 8:51 pm
Well the problem is that I've now gone overdrawn in my bank with absolutely no way of paying it back. I have a second bank account that I have 100 in and if i transfer that back it wouldn't even put me into the black. At that stage I have literally no money at all (no money for food even).
I havent even been able to arrange an appointment for universal credit yet because there are so many people doing it. The other thing is that it's going to be very unlikely that I'm going to be in a position to just restart my business after this pandemic is over. It's going to take building back up(after what's happened recently it definitely makes me think I might just better off getting a job) It's more than likely that I will be on sort of universal credit/JSA for 6 months. There will be a possibility that I could get the bankruptcy money from family to do it if I have to. The idea is the sooner the better as I guess there are going to be alot more people with far more problems coming in the next 2 months.

Foggy

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Post by Foggy » Fri Mar 27, 2020 8:55 pm
It could well be that they amend the BR provisions in anticipation of an influx, as they did in the 'crash'.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

lisakent86

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Post by lisakent86 » Tue Mar 31, 2020 4:36 pm
I did ask them and they said it can be made flexible. I am working from home so they came up with some type of arrangement and they are considering the situation, but I felt they are also seeing what's our willingness in terms of paying. Some just don't want to pay and getaway. So, I would suggest don't do this. As per your financial situation contact them and agree on some type of arrangement which suits your financial circumstances.

The General

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Post by The General » Fri Apr 03, 2020 10:32 am
Fri Mar 27, 2020 8:51 pmSammysled wrote:
Well the problem is that I've now gone overdrawn in my bank with absolutely no way of paying it back. I have a second bank account that I have 100 in and if i transfer that back it wouldn't even put me into the black. At that stage I have literally no money at all (no money for food even).
I havent even been able to arrange an appointment for universal credit yet because there are so many people doing it. The other thing is that it's going to be very unlikely that I'm going to be in a position to just restart my business after this pandemic is over. It's going to take building back up(after what's happened recently it definitely makes me think I might just better off getting a job) It's more than likely that I will be on sort of universal credit/JSA for 6 months. There will be a possibility that I could get the bankruptcy money from family to do it if I have to. The idea is the sooner the better as I guess there are going to be alot more people with far more problems coming in the next 2 months.
Hi Sammy

In your situation having no money for food, self employed, and no assets voluntary bankruptcy is a no brainer, the cost is £680 you can pay in installments however its best to get it paid in one hit so it can be submitted and usually agreed within 36 hours. Do not concern yourself with an Income Payment order 100% of debtors in an IVA pay for five or six years, only I in 5 pay an Income payments order in bankruptcy for three years, and whether you can pay or not your debts are discharged in 12 months, your IVA is failing I can tell you what you have paid in has gone in fees to an organisation you owed nothing to, however you tried respect to you for that

Foggy

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Post by Foggy » Fri Apr 03, 2020 11:02 am
Voluntary bankruptcy might well be the answer --- but a "no brainer" ??? Has the poster got a home to protect ? Will the government bring in measures to cushion the blow when they realise that waiting until June is a non-starter ? Will it be possible to tread water until we know what is happening ? Nothing is 'black and white' at the moment and nothing should be done in haste. Only the poster knows the full picture - we only know a small part.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

The General

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Post by The General » Fri Apr 03, 2020 11:31 am
Fri Apr 03, 2020 11:02 amFoggy wrote:
Voluntary bankruptcy might well be the answer --- but a "no brainer" ??? Has the poster got a home to protect ? Will the government bring in measures to cushion the blow when they realise that waiting until June is a non-starter ? Will it be possible to tread water until we know what is happening ? Nothing is 'black and white' at the moment and nothing should be done in haste. Only the poster knows the full picture - we only know a small part.
The Poster made it clear he has no assets to protect in fact he mentions moving in with parents, I would suggest the poster gets advice from one of the National Debt Charities as well as this forum,

Foggy

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Post by Foggy » Fri Apr 03, 2020 11:46 am
Thank you, General, I did miss that in the original posts.

I wholeheartedly agree that further advice is sought from qualified professionals. We can only pass on opinion and experience here.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk
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