I suddenly have got into trouble

[polar]

I have been in an IVA for 3.5 years.
I suddenly have got into trouble.
This year I have so far made only made 6 payments out of the 9. One payment was transfered to the wrong bank account during the summer and I didn't notice, so that was spent.
My IVA states I can miss 2 payments, which I have done earlier with the IP permission.
I am now in the P**H.
Does this mean instant bankrupcy, or can I work it out with the IP.....I am not feeling to good and am loosing alot of sleep. Bankrupcy isn't an option due to my work.
CAn someone please give me some advice...my wife may have to take out a loan..
Thanks

[lily]

I am not an expert but are there any partifular reasons why you are struggling this far in??

I am sure that your IP would not want your IVA to fail as it wouldnt be in his/her interests or that of the creditors.

I cannot see how you would be able to pay a loan on top of your IVA and it would seem to me the wrong thing to do. I feel that its this kind of desperation loan that leads us down this road in the first place.

I would advise that you contact your IP and explain your difficulties and try and work it out, you have come so far.

Hopefully one of the 'experts' will be along soon to advise you.

lily

[aguise]

Hi polar I would think you should be able to work it out qwith your IP. You may be able to extend the iva for a couple of months or increase your payment slightly to cover the shortfall. Speak to your IP rather than leave it and worry yourself.

Ang

Please visit my blog at http://aguise.blogs.iva.co.uk/

[polar]

I didn't think it was that easy to extend the term of the IVA for Missed payments.
Doesn't it involve another creditors meeting...couldn't they change the IVA or even not agree....

Thanks Again

[catullus]

Hello Polar

It sounds as though you have now missed three payments and it is quite common in that situation for the proposal to require your supervisor to call another meeting of creditors.

If that is the case in your IVA, he can make recommendations to creditors as to how to get the IVA back on track but, to do so, he'll need to understand why you have got in to this position and be able to explain to creditors why it won't happen again in the future.

Only you can give the IP this information and it really is important that what you tell him is credible and shows that you are taking your responsibilties seriously.

As Aguise says above the Supervisor can recommend that the IVA is extended to cover the arrears. If the creditors rejected that proposal then I am afraid that the IVA would terminate putting you back to where you were before the IVA.

Most variations put forward by a supervisor are approved by creditors but that is only because the supervisor will not put forward a varaiation unless he is satisfied that it will work, so it's down to you to persuade him.

Best of luck!

[polar]

My original creditors have passed on the debts to things like Max Recovery etc
Surely they could decide not to agree etc

[catullus]

Curiously enough, Max are probably more likely to agree because they will have bought the debt for only a few p in £, but nevertheless they are debt professionals, and will expect to have presented to them, a convincing case.

[polar]

My wife who is now earning is going to take out a loan of £2400 to cover missed payments.
This will prevent any creditors meetings etc

[MelanieGiles]

Make sure you pay her back at the end of the arrangement!!! And this seems like a sensible solution to your current dilemma.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[polar]

A few have queried a loan to clear the missing payments...
But not doing this will open a large can of worms...

[MelanieGiles]

So long as your wife is able to fund the repayments on her loan, without disturbing your ability to continue making your IVA payments, there is no problem with what you are proposing to do.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[lily]

Hi Polar

I only said that it wasnt a good idea to obtain a loan as I believed that both yours and your wife's disposible income was going towards the IVA, and as I said I am not an expert, just another person in debt.

Also I borrowed to catch up and thats what landed me in 'it'. Everyones circumstances and reasoning for borrowing are different. I also wondered if your IVA payments are realistic, since you had hit trouble and if so wondered if it was worth mentioning to your own IP.

Melainie on the other hand is an IP. I am certtain that her advice and reasoning is far better than mine.

Good luck with everything.

lily

[polar]

I wasn't mentioning you.
My IVA is on my income alone. I left my wife out of it...
Thanks
Will let you know how I get on..

[lily]

Hey no worries, just hoping that you get it all sorted. You have come so far.

lily