Myself and husband have IVAs. We have been missing payments/making reduced payments for a while. Today our IP said they are failing our IVAs (mine was due to finish next year!)
The reason for the missed/reduced payments is because of a large reduction in my husband's salary (some of his salary is commission-based and it is at the lowest ever recently)
Our caseworker agrees that because of this, we are actually in a deficit on our I&E, but will not go to our creditors to ask for a variation as they have done this once in the past (for similar reasons), and this is only allowed once.
Is this correct?
There is no way we could make full payments AND pay the arrears in the timescale they've given. I'm absolutely gutted as it looks like it'll be back to square one after all this time and effort.
We tried to not go bankrupt as we didn't want to lose our house - now it'll happen anyway!
Sounds an awful situation but hopefully not irretrievable. Hopefully one of the forum experts can advise you more. The fact you only have one year to run with your IVA is in your favour. Good luck
I'm sure you can ask for a variation at anytime. One year to go??? I tnink something more could be done. Yr husbands??? Is it interlinked?? One of the experts can answer this, I'm sure they can help x
They (Payplan) have told us we can only have one variation, and as we've had one in the past they cannnot go back and ask for another??
The reason we asked for a second one is that the income we have now is much lower than then (due to ongoing loss of commission on my husband's salary with no hope of any improvement on the horizon), and the expenditure is much higher (due to general increases and new costs). As our current plan stands, this means we have -£62 per month of expendable money after the IVA payments are made. So because our whole financial situation has changed, we hoped this would be grounds for a review with a view to a variation. They're not interested.
Myself and my husband's IVAs we have always been led to believe were totally seperate, but when we enquired today if they both had to fail, we were told yes, as one of the debts is joint. We were thinking that even just finishing mine might be preferable to both failing (his has an extra year than mine to run), but no - we're told this is not an option.
They are talking about a DMP now for us, but we will be paying that for ever! The only other option they say, is bankruptcy. We wil lose our home if we go down this route, which is why we went for an IVA in the first place. We would be devastated. Especially as we have put every effort over the last few years into avoiding this!
We have tried so hard to keep up the repayments, and have told them from the offset when we first started struggling - we were robbing Peter to pay Paul - but to no avail.
If any of the experts can advise us on if we have any other options than the two Payplan are suggesting, we would be very grateful.
Hi RuMa. Welcome to the forum. What a sorry situation for you both - it's awful. Are PP not willing to ask whether your payments to date can be accepted, and end your arrangement? It's just so close to the end for you, although it sounds like they are saying they are interlocking due to the joint debt. An expert/more knowledgeable post may be able to offer more useful advice, but I really hope you can both get this resolved. x
IVA journey started: 30th March 2009. Settled: 17th July 2012. Completion Certificate received: 13th March 2013. Breathe. x
Hi there. Please have another word with Payplan and insist on speaking to your IP directly. What they are telling you is tosh! You are not limited to one variation, and the final say is with the creditors, not with Payplan.
On the interlocking IVA question, the answer will lie in your paperwork. Does it say that the two proposals were interdependent ? If not, they are entirely separate entities and one could fail without the other following in it's tracks. As for joint loans, it simply means that the party who has the failed IVA will become liable for the full joint loan, even though it is also in the ongoing IVA. Many find themselves in this position and come to their own arrangement with the creditor for repayment.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Basically, is is YOUR IVA and YOUR proposal, not Payplans. You should be able to speak to your IP (however, getting, blood from a stone seems easier)and you have the right to put forward variations. Unfortunately, how a variation is put to the creditors can affect how they look at it, so it is best to work with your IP on this one.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
