Should I cancel my IVA or stick with it ?

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rob311
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by rob311 » Thu Apr 06, 2017 9:15 pm
My review is due and have a second job but didn't declare it as would help keep my family afloat. Should I cancel the Iva and pay my debts off to my creditors by a new arrangement or stick with the Iva. The second job is mainly for if my car suffers any breakdowns etc.
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luluj
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by luluj » Fri Apr 07, 2017 3:22 am
Welcome ... you need to declare all income and complete a review of expenses. Honesty with your IP is required - I understand your reasoning for 2nd employment but informing your IP is essential.

I would stick with your current IVA and have if it fully reviewed.
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kallis3
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by kallis3 » Fri Apr 07, 2017 8:07 am
I agree with LuluJ - stick with it and be honest with your IP.
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Foggy
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by Foggy » Fri Apr 07, 2017 8:24 am
You basically have two choices:

Be honest with your IP and try to salvage the current arrangement. It might not be as bad as you think. Did you start the second job after the IVA was accepted? If so it could be argued ( depending upon if you have the usual clauses in your own agreement) that this increase in income is to be only considered at the review and any extra ( normally 50% of the pay increase) only paid from then on. Check your paperwork, you might not be in breach --- but will be if not declared at review.

Or ....

Fail the current IVA and re-negotiate with your creditors. They will, however, add back lost interest and possible late payment charges -- your debt will increase. Entering a new IVA could be problematic, as you will have to explain to them why this IVA failed and convince them that a new arrangement will work.

Personally I would attempt to salvage the current arrangement. Read your proposal and Chairman's Report and get up to speed with what you have agreed to and the various terms and conditions, so you know what you are talking about when discussing this with your IP.

Best of luck with whatever you decide. If you continue .. remember .. honesty is the best policy ... it avoids heartaches such as this and you get no nasty surprises later on.
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rob311
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by rob311 » Fri Apr 07, 2017 7:23 pm
Thanks for the replies. My overall debt is around 6500 and can settle around 1000 of that through my second job. Nationwide will let me also set up an arrangement with them and will freeze all interest. Around 80 pounds a month. Yes it may take longer but won't have strict reviews etc. What do people think?
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Foggy
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by Foggy » Fri Apr 07, 2017 7:26 pm
For that level of debt I wonder why you are in an IVA in the first place -- but, of course, I do not know the full story.

We cannot make the choice for you I am afraid -- that is down to you and how you see things going forward.
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rob311
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by rob311 » Fri Apr 07, 2017 7:51 pm
This is my second Iva with the same debt as the first one failed due to my job title changing and loosing 400 pounds per month. I think I will stop paying into it so it fails and then reach an agreement with my creditors.
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rob311
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by rob311 » Sat Apr 08, 2017 9:57 am
Rob was calling about a 12 month review and he has taken a second job, and was earning less than he needed to declare second job. He said did he need to tell the IVA company about the second job or leave as same details for them to calculate payments. He also wanted to know if he could finish the IVA and pay companies direct.
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kallis3
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by kallis3 » Sat Apr 08, 2017 10:27 am
You need to declare your second job.

If you fail your IVA you could end up owing more than your original debt as creditors can add back on interest and charges so stick with it and just be honest with your IP.
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Foggy
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by Foggy » Sat Apr 08, 2017 11:27 am
Merged with orignal post to keep replies together.
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