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

Get expert opinion. This is the place for new questions to be posted.
4 posts Page 1 of 1


User avatar
Posts: 1
Joined: Tue May 22, 2018 9:45 am

Post 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


User avatar
Posts: 1626
Joined: Sun Oct 30, 2011 2:44 pm

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


User avatar
Forum Expert
Posts: 28964
Joined: Fri Dec 17, 2010 11:14 am
Location: United Kingdom

Post 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.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014

Lisa Thomas

User avatar
Industry Expert
Posts: 7397
Joined: Wed Dec 03, 2014 10:26 am

Post 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.
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk
4 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”