Please can you help me. I am 44 out of 60 payments in to my IVA and I am due to go on maternity leave in 5 weeks. I am going to be a single parent and so far I have not managed to buy anything for the baby as I have had to maintain my monthly payments to the IVA company and usual cost of living and have no surplus income at all. The problem is, my maternity is due to start in August and I will only get SMP throughout the time I am off - I am planning on 9 months. Additionally, I work in a sales job so my income fluctuates monthly. My average monthly take home has been calculated at £2160 but this month I will only take home £1450 so I dont think I am in a position to make the payment for July either. Do you think my IVA company will fail my IVA as I wont be able to make this months payment and will be going on mat leave thereafter? So far, they have not come back to me to let me know if I am even entitled to a payment break and I am worried about the whole thing. I really dont want to fail this far down the line....
Congratulations on the pregnancy first of all and welcome.
It may be the case that as you have made 44 payments so far your creditors may accept that as full and final based on your circumstances as it is not in there interest for it to fail now. I would speak directly to your IP and take advice from there.
thank you rayb and Michael, I will certainly give them a call. I hadn't been aware that this was an option. Do you think that they will try to fail it still though based on the fact that I can't make July's payment? Last time I had a problem with making a payment, they wanted to draft a failure notice straight away
They cannot fail the IVA for one missed payment but regardless you do not have the money and your child is much more important.
Ring your IP or send them an email expalining you cannot make any more payments and you need the variation to close the IVA. It may help to supply evidence of the pregnancy and maternity pay but otherwise you have shown total willingness to repay and creditors normally take this into account.
Thanks for the advice Michael. I spoke to the IVA company and they told me not to worry about the July payment for the time being. They suggested that I stick to a payment break for the duration of my mat leave as if I go for full and final now, the return to my creditors will decrease from 47p to 30p in the pound. They suggest that they do a revised I&E a couple of months before I return to work and at that point, if I can't afford any further repayments, to go for a full and final settlement. Do you think that would be best or would I be better to propose it now?
It is not bad advice to be fair and good to see the IP firm is working with you. Take the payment holiday and then before you return to work a new I&E can be done taking into account any tax credits, child benefit, maintenance, childcare, reduced hours etc. This would be based on exact figures rather than estimates at the moment and would make your variation more solid.
Your dividend is actually very good for 44 months and I would be surprised if creditors did not accept it as full and final and I am sure your IP will make sure it is accepted. I think your IP firm are doing all they can to help and you should be fine. Who is the IP Natasha?
Do make sure that you do not fall foul of the default provisions of your IVA. Your IP may only be able to authorise a payment break of up to three months - any longer may have to be agreed by creditors at a creditors meeting.
