I had to opt for an IVA back in May 2011. My soon to be ex wife and I had run up debts of £35,000 with the problem being it was all in my name. I am shouldering all the repayments managing my household bills etc but have to date missed two payments due to a car bill of £1,000 one month and suffering a flat month at work on the one occasion. I guess I am lucky as have the opportunity to do overtime on the odd occasion. I was told by the firm handling the IVA at the start of it over the phone that they would be flexible and that from time to time I could miss payments due to personal circumstance. However on requesting a third time after undergoing an operation and being off sick for 6 weeks with a knock on effect on my pay the administrator appears now to be inflexible contrary to our initial discussions over the phone back in 2011. He states that he will have to prepare the paperwork and approach my creditors but that the agreement may fail. Does this mean bankrupsy? The agreement is fairly inflexible with creditors/administrator taking nearly 50 pence in the pound back leaving repayments difficult and tight to say the least on a monthly basis. Have I got any options left at all? With no pay rise in over three years now and cost of living constantly on the rise its difficult to make ends meet. I have approximately 45 repayments left. Bankruptsy would mean losing my job and eventually my home. Has anyone any advice as to how to approach the adminstrators? Thank you
To update this post have worked out the repayment is about 60 pence in the pound when you add the administrators fee. I originally was on a debt management plan for nearly two years and in that time my creditors counted my repayments as covering the interest and made no headway in actaully repaying the debt during that time with another firm who kept making excuses as to why I didnt really qualify for an IVA.
Sorry you have had so many problems and I hope that you are now fully recovered.
Hopefully you will be able to continue with your IVA but, in the event of failure, this does not mean automatic bankruptcy. You could propose a new IVA with a different firm or drop back onto a DMP in the short term whilst you sort yourself out.
There is some flexibility in the IVA as you've experienced but there is a limit. My proposal says 3 missed payments could lead to the IVA failing - it sounds like you may have the same clause. Have you checked your paperwork to see what's allowed? x
Thanks for responding to me. I will check the paperwork but never thought to ask at the start of the agreement! I am speaking to the administrator later this afternoon so fingers crossed everything works out. I will update this post once I have spoken to him. If worst comes to worst will reshuffle and try to get by next month.
Thanks again
Last edited by Lins_ on Fri Oct 12, 2012 1:00 pm, edited 1 time in total.
It is likely that the specific terms of your IVA dictate that it goes into default when 3 payments have been missed - and so your IP firm no longer has any discretion to exercise flexibility. This does not mean that your case cannot be varied with the agreement of creditors, however, so I would have another chat with your IP to see what can be done.
It sounds like you have had a run of bad luck, but there is nothing that cannot be fixed with good ongoing communication with your IP.
I spoke to my IP yesterday afternoon and he said near enough what you said to the word. He also said that its not in the interest of the creditors to push for bankruptsy as they would lose heavily. I have decided to do some juggling in the meantime so although a tough month ahead in November determined to make ends meet without the need to convene a creditors meeting.
