IVA & Maternity Leave/Pay

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trsttn1994

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Post by trsttn1994 » Wed Apr 08, 2020 12:40 pm
Hello,

I have recently found out that I am expecting.

I will be aiming to go on Maternity Leave late October of this year, and after the first 6 weeks, will only receive statutory Maternity Pay for the remainder.

This will mean returning to work late July - early August of 2021, providing everything goes as it should.

I will not be able to pay anything near the amount I currently do, due to the massive drop in my income.

ALSO, my IVA is due to finish in July of 2021.

Basically - a payment break is not something I would be happy opting into, due to how close I will be to completing my IVA at the time I take Mat Leave. I would be very reluctant to extend my IVA by any amount of time, at a point so close to the finishing line!!

So can anybody advise on how this is likely to work? Will I just have to make minimal payments until my IVA finishes? Any thoughts would be greatly appreciated.

Foggy

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Post by Foggy » Wed Apr 08, 2020 1:01 pm
A substantial reduction in payments would have to be agreed by the creditors and they may well agree this on the condition that extra time is added (however, they may just agree with no extensions) -- it will depend on the figures at the end of the day.

My usual advice would have been to talk to your IP and agree a schedule of a break and possible reduced payments, to be made up after ---- but, as you have ruled out any extension to the term you would, basically, be asking for a reduction or, maybe a full and final based on payments to date, as of November --- so being 'excused' 6 months.

Only your own IP can say what they would be willing to entertain.
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

trsttn1994

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Post by trsttn1994 » Wed Apr 08, 2020 1:14 pm
Thank you for your reply, Foggy.

If I was earlier into my IVA I’d have happily asked for a payment break/extension, but would be upset having to with so little time left until completion!

And as it stands, I have already over-paid on my original ‘debt’, but of course that’s not taking into account all of the fees I owe to the IVA company, etc.

Will speak to them to figure things out properly soon, but I’m sure they’re inundated with more urgent queries given the current situation, so was just looking for some guidance in the meantime, which you’ve provided.

Thank you again :-)

kallis3

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Post by kallis3 » Wed Apr 08, 2020 2:44 pm
Your fees have already been taken into account in your payments so you have nothing to worry about there.

When you say the original 'debt', do you mean your IVA figure?
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.
Bob Marley.
http://kallis3.blogs.iva.co.uk

trsttn1994

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Joined: Wed Apr 08, 2020 12:24 pm

Post by trsttn1994 » Wed Apr 08, 2020 2:46 pm
Wed Apr 08, 2020 2:44 pmkallis3 wrote:
Your fees have already been taken into account in your payments so you have nothing to worry about there.

When you say the original 'debt', do you mean your IVA figure?
Hi Kallis3,

I mean - I was originally in around £7000 worth of debt in total, but I’ve already overpaid that amount in my weekly IVA payments. X

kallis3

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Post by kallis3 » Wed Apr 08, 2020 3:49 pm
If you have paid off your debts in full your IVA should be finished.

Was it an IVA or a DMP as that does seem a bit low for an IVA. Which company are you with?
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.
Bob Marley.
http://kallis3.blogs.iva.co.uk

trsttn1994

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Joined: Wed Apr 08, 2020 12:24 pm

Post by trsttn1994 » Wed Apr 08, 2020 5:22 pm
Wed Apr 08, 2020 3:49 pmkallis3 wrote:
If you have paid off your debts in full your IVA should be finished.

Was it an IVA or a DMP as that does seem a bit low for an IVA. Which company are you with?
It’s an IVA with Freeman Jones (formerly Harrington Brooks) I’m not sure on the exact figure of my total debts without going through ancient paperwork but it was 100% below the £8000 mark.

I was 21 when I enrolled into my IVA and feel like I was taken advantage of to an extent - I was quite overwhelmed to be in such debt at a young age - so just went with whatever they suggested! Felt like I was persuaded into it when there were likely other outcomes (as I hadn’t actually missed any payments when I entered into the IVA)

It’s only been since, over the years, that I’ve read up on so many cases of people only resorting to IVAs when having a much larger amount of debt. Hence feeling I probably never should have.

I also asked Harrington Brooks for a settlement fee last Summer (exactly 3 years into my IVA) and they requested thousands :-(

Foggy

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Post by Foggy » Wed Apr 08, 2020 6:13 pm
How long have you been paying and how much per month ? Has there been any PPI and extra income paid in ?

On an £8k debt it would take around £3k in fees and statutory interest ( if it is payable, which is not always the case) would be , so far, around the £2k mark ---- so About £13k would see it clear.

As regards settlement -- you asked the wrong question: settlement is paying the figures mentioned above in full. What you need is a full and final --- which is an offer you make based on remaining payments.
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

Financial Wellness

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Post by Financial Wellness » Tue Apr 14, 2020 2:05 pm
Hi trsttn1994,

Congratulations on having a baby on the way.

We can certainly look at the options for your IVA once you move to SMP. The best thing to do is to give us a call - we moved to home working and we are here to help, so please do just give us a call on our usual numbers.


Ian
A member of the team at Financial Wellness Group (Formerly Freeman Jones ) - www.financialwellnessgroup.co.uk

Financial Wellness

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Post by Financial Wellness » Tue Apr 14, 2020 2:12 pm
Tue Apr 14, 2020 2:05 pmFinancial Wellness wrote:
Hi trsttn1994,

Congratulations on having a baby on the way.

We can certainly look at the options for your IVA once you move to SMP. The best thing to do is to give us a call - we moved to home working and we are here to help, so please do just give us a call on our usual numbers.


Ian
Sorry, I meant to add - or drop me an email to ian.williams at financialwellnessgroup.co.uk and I'll ask one of my colleagues to give you a call.
A member of the team at Financial Wellness Group (Formerly Freeman Jones ) - www.financialwellnessgroup.co.uk
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