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
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.
Last Payment made 04/12/14. Completion Certificate 25/7/15. IVA company GT. No Issues
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.
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