We've been into our IVA for 3 years. My husband lost his job 6 weeks ago and has just managed to get another now, training starts next week. I have now lost my job.
If we can't pay the IVA how long will it take to fail? Would it be better to just go for bankruptcy now?
Have a chat with your IP tracyh as they may be able to give you a payment break until you get back on your feet, it would be shame for your IVA to fail after three years
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I lost 3 jobs during the course of my iva, the first 2 times I managed to keep payments going with redundancy money until I found another job. More recently, I was made redundant with no payout and even no last months salary. I spoke to my IP who were very understanding. In the end I had to put in a full & final offer based on monies already paid and luckily it was accepted. I had completed 4 years.
You should speak to your IP, I know it can be daunting but in the end they don't want the iva to fail any more than you do. I was always a bit terrified when something like this happened and found contacting my IP quite nerve wracking, but they were always helpful and understanding.
I hope you find something else soon, maybe they could reduce the payments for a while and extend or something like that. There's usually something that can be done. Good luck. Sx
Sorry to read of your bad run of luck ...glad your husband has been.able to secure new employment relatively quickly.
As others have suggested your IP may be able to help and sanction a short break. I certainly wouldn't even consider bankruptcy at this stage ..you have already met over half of your payments and I am sure creditors will respond positively to the situation when it is explained to them. Your IP is the key person in this and I would speak to them sooner rather than later.
Good luck x
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Thanks for all your replies. I have tried to speak to Grant Thornton but am waiting for a call back. I have also emailed them as well. My head's all over the place at the moment and I feel like I have gone into panic mode!
Only natural ..am sure most of us would do the same.
Worst case scenario and you can't gain new employment, your IP could propose payments to date to settle your IVA early but they would want to see you have taken every route possible to gain a new job and have exhausted all avenues with reducing budget etc
Good luck
Last edited by luluj on Fri Jun 07, 2013 5:17 am, edited 1 time in total.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
So sad to see both of you become victims of redundancy in such close proximity, but good to see that your partner has fixed something up already. As they say, what doesn't kill you makes you stronger - so keep the faith in the IVA, and if you need to take a payment break then I am sure this can be arranged for you by your IP.
don't give up on your iva, talk with your IP.
I was in the same boat last year, talked with my ip and a way forward was found. which allowed me to take up new job and move.
IVA now over with and it was worth it.
now starting my life again,
Creditors will be sympathetic and you should get a payment holiday. If the new jobs pay less you may even be able to close the IVAs down based on payments to date.
Just spoke to Grant Thornton and they say that they have received almost £15k in PPI on our behalf. They are going to offer a full and final to the creditors but they are not sure they will accept. It will mean they get a dividend of 19 pence to the £1.
Anyone know if they are likely to accept such a low dividend - I don't wnat to get my hopes up.
Also, the lady I spoke to mentioned us getting 5% tax back from the PPI ourselves, is this true or did I not understand and it goes to them?
Our iva was approved on a dividend on 17p in the £ there is no reason at all why your creditors should not accept your proposal, many Ivas are now being accepted at only a few p in the £, it's quite discouraging that GT are putting extra stress n you at this time by suggesting a dividend on that amount is too low to be accepted.
Hi. As Lem says many IVA's are accepted at much lower dividends.
To be honest I think that GT are just covering their backs by keeping your expectations low. I am just starting to put together a variations to accept payments made to date. The dividend will actually be the expected dividend, due to an extra £5000 we paid in the first year and PPI paid back since. But GT will not commit to an opinion and gave me the "doom and gloom" speech too. Basically it means I shouldn't be disappointed if rejected but should be pleasantly surprised if accepted. To be fair, GT don't want to be seen to be making any false promises, which is fair enough.
That said we could certainly do with all the positive vibes we can get
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
