I am currently in an IVA but am struggling financially with day to day living. Would it be possible or better to declare myself bankrupt or is it possible for the IVA payment to be reduced?
Depending on how much you need them to be reduced, your IP may be able to agree to that without resorting to asking your creditors. Otherwise, a variation meeting will have to be held.
How long have you had your IVA, and is there anything in particular that is making it hard for you to pay.
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In the first instance you should have a discussion with your IP to see if the payments could be reduced. A lot of people in IVAs are struggling at the moment, and IPs want to help out where they can. Have a revised income and expenditure ready to send to the IP, based on what you believe you can afford as a starting point.
We always advise our IVA clients that if they meet unexpected costs or their income reduces or cost of living gone up - we are prepared to discuss and submit a variation to creditors. Speak to your Supervisor and (as Melanie advises) have current Income/Expediture details ready
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Further to Gemma-g question, I am in a simular situation as my partner that I lived with moved out this week so my mortgage payment per month will now have to be increased, (my partner was not on my mortgage). If I contact my IP and say for example that have to call a creditors meeting, if a new figure is agreed, will this mean that the IVA will start again or be extended beyond the five years? As my car was not included in my IVA, would this change?
Hi
If they agree a reduced payment then the term of the IVA will remain the same.
Your car will remain outside the IVA.
Have a think about turning the mortgage into an interest ony one hence reducing the payments.This will help the viability of you IVA
Regards
Many thanks for this advice, i'm already on an interest only mortgage, but really wanted to know where I stood here especially where my car is concerned as I need this for my work. I will speak with my IP and see what they have to say. I would mention that this web site is just simply fantastic, it is full of so so much information which i have found an absolute god send [:D]
There is no reason why you car would be included in the IVA - it is essential for getting to and from work, without which you would not be able to earn the money to pay the creditors.
I realise this Melanie, however when my IVA was approved, I was advised by my IP that had one of the bigger creditors voted, they would have insisted on my car being sold, so you can understand my concern if there had to be a creditors meeting [;)]
The creditors meeting is to deal with the proposed variation - ie a reduction in payments, and not to revisit issues which should have been dealt with at the time of the first creditors meeting.
Depending on the terms of your IVA your personal circumstances change and the necessary reduction in your net DI might not need calling a variation meeting (creditors)- As Melanie states your car issue remains as is. Speak to your IP to find out. If there is to be a variation proposed - don't worry as you have cogent reasons and it should not be a problem.
Last edited by David Mond on Sun Oct 26, 2008 2:47 am, edited 1 time in total.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
