My husband lost his job in february so we have been on an agreed payment break which comes to an end this month. The problem is he has only managed to find a temp job which pays him less than half what he was earning previously. This job is likely to last until October although there is no guarantee. Also the company I work for has put us on a 4 day week so I am losing 20% of my income. I will get my first reduced wages at the end of July (I am paid a month in arrears).
Our IVA payment is £587 and I just can't see how we will be able to afford this. We are 3 years into our IVA and I am worried sick that it will fail.
I am planning to pay this months payment in full and then get together all the information when I get paid and submit it to our IP for an income and expenditure review.
My questions are:
1. As my husbands job is temporary with no guarantee of hours or how long it will last will they consider his income?
2. In your experience is it likely that we will get our monthly payment reduced. We have already added 4 months to our agreement and I really don't want to keep extending it I just don't know what to do.
I haven't even rung our IP yet as they are useless and I expect the person I spoke to in February has left. We have had at least 8 different case workers in 3 years and that is the ones I spoke to.
I am really worried as I don't want to keep asking for variances I just don't know what we can do.
I cannot speak for your own IP, of course, but I have definately arranged longer payment breaks of up to one year for clients of mine faced with similar circumstances to your own.
The only thing you can do is liaise with your IP who will be facing similar problems with other clients as well. Everyone knows that this credit crunch is still affecting many industries, and I am sure that you will find your creditors to be sympathetic.
Thank you for the advice I am going to be brave and contact my IP tomorrow. I just want the 5 years to be over and keep extending it is not an attractive proposition. But equally I am worrying myself sick about not being able to make the payments.
I will let you know how I get on.
hi lulu have you got any close family or friends that may help you with a lump sum,because of your jobs situation you may be suprised how small a offer your creditors may accept as a full and final offer.with unemployment problems creditors are more likely to accept a small offer in your circumstances rather than risk your iva failing.you have done well maintaining your iva for 3 years. it could be a way out for you,say 2,3or4 thousand is better than nothing.
Last edited by MRBLUESKY on Tue Jul 14, 2009 5:51 pm, edited 1 time in total.
Give your IP a ring, they need to know what is happening on the jobs front, and as Melanie says, you may be able to negotiate a longer payment break.
Far better to do this now so that you can sort things out with them.
It is in no one's best interests for the IVA to fail now.
I'm sure your IP will be sympathetic.
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
I cannot speak for your own IP, of course, but I have definately arranged longer payment breaks of up to one year for clients of mine faced with similar circumstances to your own.
The only thing you can do is liaise with your IP who will be facing similar problems with other clients as well. Everyone knows that this credit crunch is still affecting many industries, and I am sure that you will find your creditors to be sympathetic.
Hi if an IVA fails after say 3 years payments. Does the amount that has been paid in come off any debt you owe creditors or do you end up going back to square one owing the full amount?
If you fail your IVA then some of the money you have paid across will have gone to the creditors, plus some will have gone towards paying IP and supervisors fees.
Once it fails, then the creditor will start adding interest and charges again, and you will be back to square one.
You always owe the full amount to a creditor until the IVA is completed.
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
If you fail your IVA then some of the money you have paid across will have gone to the creditors, plus some will have gone towards paying IP and supervisors fees.
Once it fails, then the creditor will start adding interest and charges again, and you will be back to square one.
You always owe the full amount to a creditor until the IVA is completed.
I see what your saying but it doesnt seem a fair system if a person has without fail paid into the IVA and through not fault of their own falls ill or loses their job they dont have chance to pay it back when there back on their feet.
I see what your saying but it doesnt seem a fair system if a person has without fail paid into the IVA and through no fault of their own falls ill or loses their job they dont have chance to pay it back when their back on their feet.
Last edited by POLAND on Tue Jul 14, 2009 9:39 pm, edited 1 time in total.
If they fall ill, or lose their job, then they can usually negotiate a payment break for a few months while they get back on their feet.
Each person's circumstances are different. I was just pointing out what happens if an IVA fails.
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
Update
Well I phoned my IP and they turned out to be just as useless as I feared.
Their answer was that I have to submit a new income and expenditure form. But they think the best case scenario is that I wil be allowed reduced payments for a short time. They think that it is likely that the creditors will say No and the IVA will fail. They said that their experience lately is that creditors will accept a payment break for a short time but that after that if you don't get a job and resume full payments they will fail the IVA.
I am now worried sick that I will be declared BR and lose my home.
Help what do I do know?
From what I have heard on here recently, creditors are quite sympathetic to payment breaks, and you IP should put your circumstances forward and it is up to the creditors what they say.
Far better they allow you a payment break now, than let the IVA fail and possibly get nothing if you go bankrupt.
Is your house in negative equity? If so, then you most probably won't lose it in bankruptcy.
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
I don't know what my home is worth but I don't think it is in negative equity.
Someone mentioned making a full and final settlement.
My debt was £82k and I have made payments of approx £20k. My dividend was 53pence in the £ and I am expected to make income contributions of £35K and release the rest from my home.
Obviously there is no hope of remortgage but there is a slight chance that a family member may lend us about £5k which would only give them £25K and they were expecting £43K. I just can't see them accepting it.
I am really fed up with my IP I thought they were supposed to help you.
It might help to send an email to the organ grinder, rather than the monkey.
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
