|If wages drop due to sickness will I still have to pay the same monthly amount

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carole727
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by carole727 » Tue May 22, 2018 9:45 am
I’m currently in an Iva but due to a mental breakdown which occurred at work and that although my debts were approximately £5.500 when I did the Iva I have calculated that at the amount I am paying I will have paid over double what the original debt was , if my wages drop due to sickness will I still have to pay the same monthly amount.Thanks
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MerlinL14
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by MerlinL14 » Tue May 22, 2018 9:56 am
Hi Carole, if you were to calculate in interest and fees over the 5 year period your calculation of £5500 would be closer to £8000. I can't see why on such a small (in comparison to what my debt was) amount an IVA was proposed, a DMP may have been a better alternative. But going back to your question, you need to speak with your IP about your condition and outline what will happen if it gets worse and you have to take time off work. What your level of income is likely to be on the sick and what your options are.
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Foggy
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by Foggy » Tue May 22, 2018 10:35 am
You could agree a payment break with your IP until things improve, or, you could re-do your I&E to see if reduced payments are possible --- they would have to be agreed by your creditors as well as being sufficient to make the IVA still viable.
I agree that an IVA for debts of £5.5k is an extreme solution, but, it is done now and your circumstances at the time might have precluded other solutions.
Have a chat with your IP.
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Lisa Thomas
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by Lisa Thomas » Tue May 22, 2018 10:40 am
I agree with the others - you always owe the total debts, interest and costs but anything remaining at the end of a successful IVA is written off.

£5.5k is a very small debt to have put forward an IVA on but that's in the past now and you can't change it.

As Foggy says you can either have a payment break, reduce your contributions or depending on your circumstances propose a variation on the basis of payments paid to date in full and final settlement.

You need to speak to your IP.

I hope you feel better soon.
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