Hi, My girlfriend has an IVA for about 2.5 years

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wayne_ee
Posts: 1
by wayne_ee » Tue Jan 12, 2010 5:21 pm
Hi, My girlfriend has an IVA for about 2.5 years now and paying just under £700. Her company are reducing employees salaries by 20 percent due to the economic climate, this means that she will lose about £5,000 of her salary per year. The IVA she has have said that they can help but they will need to extend the IVA for another 2 years! Can they extend the IVA another 2 years? I thought it was only for 5 years..

 

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NTF Financial Solutions
Posts: 56
by NTF Financial Solutions » Tue Jan 12, 2010 5:27 pm
Hi Wayne
It depends on the terms of the IVA. There is standard clause/modification that payments can reduce by 15% and that the IVA can be extended by 12 months to make up the shortfall but this term may not be in your girlfiend's IVA.
The IP may be talking about proposing a variation to extend the IVA to 7 years, but the main answer to your question there is no set time limit that an IVA is legally allowed to last. It is for the debtor and creditors to agree the period which in the vast majority of cases is 5 years.
Get your girlfiend to check her proposals and modiciations to see what they say about reducing payments.

 

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Adam Davies
Posts: 14596
by Adam Davies » Tue Jan 12, 2010 7:18 pm
Hi
I would check your chairmans report as it is a little unusual to exstend for two years. Some IVAs do not exstend at all even when there is a payment reduction
Regards
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