can we have our payments reduced ?

[jhs]

MYSELF AND MY HUSBAND ENTERED AN IVA 2 YEARS AGO .WE HAVE A BUSINESS WHICH WE ARE TRYING DESPERATLY TO KEEP RUNNING WORKING 7 DAYS A WEEK TO KEEP OUR MORGAGE PAYMENT UP AND THE IVA PAYMENTS ALONG WITH THE RENT ON OUR SHOP AND VAT ETC.

WE HAVE REALLY QUIET TIMES WHEN WE CANNOT PAY OUR SUPPLIERS TILL WE GET MORE BUSINESS WHEN WE WENT INTO THE IVA WE AGREED THE PAYMENT AT THE TIME BECAUSE WE WERE DESPERATE TO END OUR WORRIES OF DEBTERS BUT OUR SALES HAVE GONE DOWN AND WE STRUGGLE AT TIMES AND HAVE HAD TO BORROW MONEY FROM OUR FAMILY TO PAY TAX BILLS

CAN WE HAVE OUR PAYMENTS REDUCED AT THESE HARD TIMES AND IF PAYMENTS ARE REDUCED DO THESE GO ONTO THE END OF THE IVA 5 YRS TERM WE LIVE DAY TO DAY FOR FOOD AND DO NOT SPEND ANY MONEY AT ALL ON OURSELVES

[MelanieGiles]

Hi jhs and welcome to the forum

It is always harder to predict the income of self-employed traders, because you never know exactly who is going to turn up and spend in your shop on a day to day basis.

If you are trading at a loss, and having to rely on monies from third parties just to keep afloat, this may be a message to you that the business cannot support the IVA. Would it be more sensible to cease trading and try to find salaried positions?

One thing you must not do during an IVA is to incur additional credit which you cannot afford to pay, or fail to pay your income taxes on time.

Your IP might be prepared to agree to a reduction in payments, which may need the sanction of your creditors, however this could be just delaying the inevitable if the business in in trouble.

[jhs]

HI MELANIE THANK YOU FOR YOUR REPLY, I WOULD NOT SAY THAT OUR BUSINESS IS IN TROUBLE AS WE HAVE MANAGED TO PAY EVERYTHING IT IS JUST THIS YEAR WHEN BUSINESS HAS BEEN SLOW , AND A DOWNTURN IN BUSINESS HAS MADE IT A STRUGGLE .CERTAIN TIMES OF THE YEAR IS BETTER THAN AT OTHER TIMES ,WE ARE HOPING FOR BUSINESS TO PICK UP AGAIN BUT HOPING FOR A REDUCTION IN OUR PAYMENTS WE HAVE BEEN TRANSFERED FROM DEBT MATTERS TO PAYPLAN.WE RANG PAYPLAN LAST WEEK TO ASK IF COULD REDUCE OUR PAYMENT FOR THIS MONTH WHICH THEY AGREED TO AND WHEN WE DO THE REVIEW WE ARE HOPING FOR A LOWER PAYMENT TO BE AGREED ,PAYPLAN HAVE A CREDITORS MEETING ON MAY 1ST SO HOPEFULLY THIS MAY BENEFIT US ,I,AM REALLY PLEASED WE FOUND THIS FORUM, ITS GOOD TO GET FEEDBACK FROM PEOPLE IN SIMILAR POSITIONS

[MelanieGiles]

When I am proposing IVAs for self-employed clients, I always allow a three month window to take account peaks and troughs in trading. I have to say that this is very rarely used by my clients, but it is there if they need to and gives them a little comfort in quiet months.

[jhs]

hi mel, thankyou for your reply, a payment break would be an idea, when we spoke to the lady at payplan, i think she mentioned we could put 2 payments at the end of the agreement, i think she called this red x ?, if i caught it right, dont want to have to do this as we have been on course for the last 2 years,but it has been a bit difficult of late

[MelanieGiles]

That does sound sensible - or maybe paying the next four payments at half the amount is better as it does show that you are trying your best. Take advice directly from your IP to make sure that you don't fall foul of any of their own internal rulings.

[jhs]

we would like to thank you very much for your time this evening Melanie , it is nice to be able to talk to somebody . kindest regards J&L

[MelanieGiles]

It has been my pleasure - and that is what this forum is all about, so do remember you can come on here at any time and ask away.