How IVA monthly payment works?
Changes to Your Circumstances
During your IVA - Individual voluntary arrangement, regular reviews of your financial situation will be undertaken by the IP to maintain your monthly payments. These are normally conducted once a year. If during these reviews, it is agreed that your circumstances have not changed, then you will continue to make your monthly IVA payment as normal. If however, your circumstances have changed for the better, you may be asked to increase your monthly payments accordingly.
If during the period of your IVA your financial situation changes for the worse and you cannot maintain the agreed payments then your IP can ask your creditors if they will agree to vary the terms of your proposals. If up until that time, you have maintained your payments without problem, your creditors are likely to accept requests.
Failure to Maintain the Agreement
If you fall into difficulty and are unable to make the payments to your IVA (e.g. you lose your job), it is possible to agree a payment holiday with the IP. The months which you miss will normally be added to the end of the agreement.
NB:If you are unable to re-start your payments at all, it is likely that the IVA will fail. Your creditors will then be able to take other action against you and alternative arrangements must be made.
The above is provided as information only. Iva.co.uk does not provide debt advice. You must always seek professional advice before taking any action to resolve your debts.