Loss of income

[james377]

Hi ,

I started an IVA in 04/2019 , payments set at around 450 a month.
Since the payment have lowered to 260 and its been extended to 66 months due to moving extra costs etc.
following on from this I have faced a wage reduction and have a significantly lower amount left i can pay in £23 a month.
what options do i have , my via contains a clause to petition a BO.
I have also got a windfall payment from employer of around 2k - could i offer this as a final payment to close the iva early ? currently just under 5k paid towards 32k iva

[kallis3]

You need to speak to your IP asap. £23 a month is not a good sum. Your windfall would just go into your IVA. I can't see it being taken as a full and final but that is just my opinion.

[Foggy]

Under the standard terms the windfall could be payable to the IVA anyway, as an extra dividend ans will not go towards covering the agreed monthly payments. Your figure of £23 per month will not support an IVA and the arrangement is likely to fail. If the IP is obliged, under the agreement, to file for bankruptcy then that is what will happen. Do you have any assets to protect, which would make BR unwelcome ?

If the creditors are likely to get next to nothing under BR, they may agree to 'call it quits' and close the arrangement on payments made to date (possibly including this £2k windfall) .

I am afraid that you need to bite the bullet and haver a frank chat with your provider.

[james377]

Thanks for the response,

having gone through what was a revised chairman report , it looks like the BO clause was removed upon revival.

I will already be using part of the winfall payment to buy failing home goods ,this is with the supervisor at present.

so I have 1.5k left , iv worked out that at what i can offer they will get under the 1.5k at £23 a month .

would i be wise to just try offer 1.5k as a final payment and hope for the best.

[Foggy]

You can try ... and it might be accepted ... but I have my doubts. At the end of the day £23 will not be acceptable as a viable payment and the £1.5 k is payable anyway. All you can do is hope they call it quits and close on payments already made ( including the £1.5K).