Is it possible to have a payment holiday in a IVA ?

[Gary.69]

Is it possible to have a payment holiday in a iva agreement ?

[Broke of London]

Yes but it is dependent on the reasons why you need a payment break. Your IP and possibly creditors will need to agree. Many posters including myself have used them for car disasters, boiler repairs, redundancy etc.

[lem]

as BOL says, it is possible but your IP has to sanction it and it would have to be for good reason so usually they would need to see evidence of the need for it, check your proposal to see what it says about payment breaks and bear in mind that the payments still have to be made up at some point whether it is over the rest of the period of the term or added on at the end

[kallis3]

Hi and welcome,

You can have a payment holiday but, as the others have said, it has to be for a good reason such as boiler repairs etc - I had one at the beginning of the year. You will have to provide proof to your IP that it is necessary.

You will have to let them know beforehand.

[RRones]

Am i right in saying your allowed 6 months in total over the life of the IVA. What happens if u take the 6 months but another issues crops up ?? Do you fail your IVA

[lem]

I guess it depends on what the issue is, when it happens etc, for me, I would do everything I could to avoid using a payment break, but obviously if something like the boiler went then we would need one to get it replaced, but you would hope that it would then be guaranteed for the rest of the term, car repairs I would generally look to try and fund out of our existing allowances if possible and that's why it's so important to save them if you can.

[kallis3]

You are usually allowed a three month break before the IVA will fail. The six months is only if you are made redundant usually.

If you are struggling at all then the IP should be the first port of call to arrange a payment break. You will have to make up the payments either during the term or have it tagged on at the end.