Since my last review I have been made redundant and although have now found another job, I'm earning about half of what I was. I have moved into a shared flat to reduce my outgoings, but my left over income is now half of what my payments for last year were. I've only missed one payment by using what savings I had and my statutory redundancy pay. I've kept my IP up to date with the situation. My question is, will this mean my IVA will fail, or will it need to be re negotiated. As I'm two years in not sure if bankruptcy would be better (no assets at all) I dont want to waste they money I ahve paid in so far. But not sure if its likely they will accept such reduced payments. thanks for any help!
Hi there,
You've done well to get through the first year and the trauma of redundancy - as well as finding a new job - so congratulations.
I'm no expert and I'm sure Jan, Mel, and all the regular posters on here will get back to you, but I would have thought that you need to speak to your IP again and say that you are struggling despite best steps. I talked to DFD today myself as I am facing redundancy but have applied for a job with a much lower salary. Should I be lucky enough to get it, I wanted to know what would happen. Seemingly my IP would check to see how much disposable income I had to pay into an IVA and would then contact the creditors. I would have thought they would be happier to get anything rather than nothing as they would in bankruptcy but all circumstances vary. I wouldn't panic - contact your IP and have a frank discussion - it sounds as if you have done everything right so far.
Good luck.
Creditors have differing policies when it comes to accepting variations/ moderations so your IP will give you the best advice. He will also be able to advise you about bankuptcy.
You did extraordinarily well to keep so up to date with your payments during your redundancy and you have done all you can to reduce your outgoings so I would hope creditors will look favourably on a renegotiation.
Re the money you've paid so far: the IP will take their fees first and the remainder will go to creditors. I'm not sure whether creditors can add on interest and charges etc once an iva fails but hopefully one ofthe experts can clarify that for you.
Thanks for the encouragement, its all been a bit of a nightmare! I've worked out that the original agreement meant I was paying 32p in the pound and if its reduced to what I think it should be, will be paying 22p, thats still vastly better than the 9p they'd get if I went bankrupt, so hopefully will be able to renegotiate. My IP is Grant Thornton and so far they have been very helpful....not sure if my creditors will be so!
Hi I am with Grant Thornton too they have been great dealing with all the problems I have had. they put forward a variation for us as I lost my job and had to move house so needed a payment break and reduce payments from £275.00 to £173.00 with a 12 month extension it was rejected by first direct. I am in such a mess at the moment suffering from anxiety and depression crying for nothing having daily panic attacks. I know should go bankrupt but I am so scared. Our termination is on hold at moment giving us a bit more time deciding what to do.
Telling you not to panic is patronizing and hypocritical - so I won't! This is a difficult decision for you and you should take all the time you need to feel confident in what you do next.
What has your IP recommended as your next course of action?
There are lots of posters on here who have gone bankrupt and lived to tell the tale. Hopefully some of them will pick up on this and offer you some practical support.
As soon as an IVA fails then the creditors can start charging interest and putting on charges again and they most probably will.
FH - don't be scared of bankruptcy, it will enable you to move forward and be totally debt free and you might not even have an IPA. Both Julie and Skippy will tell you that it's not that bad. You are going to have to make a decision soon though.
Don't forget that the forum is here for support for you.
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
It sounds to me as if a variation of terms is a very sensible solution here - if you can still pay a dividend of 22p in the £ from your reduced income, then I don't see why that should be turned down.
