www.iva.co.uk

Its been a while since I posted on here (under a different username) and this is not really a question, more a cry 'please hold my hand.'

I was able to take a new computer through a scheme run my my employer where the lease payments were sacrificed from salary (as the computer we had had gone for the blue screen of death option one too many times). At no point during the drawing up of documents was 'credit' mentioned. Its a lease agreement, and there was no credit check (although the agreement was governed by the Credit Act 74, perhaps this should have rung bells).

Now I am leaving for a different job, there is a termination clause, which will take the remaining rentals out of my final salary. I have confessed to my case officer, but this constitues a 'breach' as the amount of remaining rentals is over the £500 limit in the t&cs and I didn't get authorisation.

I have been assured that the supervisor is reasonable, etc, and I have stressed until I am blue in the face that this is a mistake, and I need to finance the repayment out of alternative income etc. But I am petrified of failure. I am nearing the end of the fourth year, and failure is not an option - as a chartered accountant, failure would lead to bankruptcy and all would be lost.

I have to wait for the supervisor to get back to me, and I know I have made a mistake, but is there any reassurance out there?

I would stick my neck out and say that you have absolutely nothing to worry about. Ask for a payment break to cover your lost income when they clawback the lease payments, and then try to make up the short payment by paying slightly more than your usual contractual payment to deal with thsi moving forward.

I doubt that this will have little or any material effect to the eventual outcome of your IVA.

Thanks for your comments Melanie. This is the view I am hoping my IP takes, but it is the uncertainty that is worying me. It is reassuring to get the thoughts of a professional on this.

I'm kicking my self for my stupidity and potentially jeopardising my arrangement.

Well stop it! You have not committed a crime, and this is easily fixed, and perfectly understandable how the confusion originally arose. How much do you still owe on the agreement, and how much are your contractual payments into the IVA?

The amount o/s will be around £800 (might be less depending on whether it is tax deducted or not - less than £500 if they are tax deductible as I am a higher rate tax payer) and my payment is £675. the £800 is based on the rentals coming from net pay, but the scheme is set up such that they usually come out of gross. I should also get away from the BIK charge.

So in this regard if I can take a month to catch up this would be ideal. Once I've heard from my IP regarding their conclusions, I might try and propose this solution.

I think I've been shaken by having the terms of the IVA quoted back at me with the terms 'breach' 'report to supervisor' 'failure' staring me in the face.

No great problems here - and don't let anyone tell you that there is. Technically there is a breach, but one which cannot be easily overcome with some common sense.

Really hope your own IP gives the same advice as Mel - please try not to worry - there will be a solution and no one will want you to go bankrupt having got to this stage ....let us know the outcome.

Good luck - keep us posted.

Good luck from me - wise advice from Mel.

Please come back if you need any further advice.

Good luck from me too and glad Mel has reassured you x

If I was your Supervisor I would allow a payment break to cover this. Good luck and let us know how you get on.

Thanks for your opinions David and Melanie and your thoughts everyone else. I should hear soon, so I will pop back and let you know.

Fingers crossed for a reasonable perspective from my IP.

Good luck from me as well x

Brief update

No failure of the IVA (which is possibly the best piece of news I've had since getting a new job after being made redundant). With only 15 months left, I am working with my case officer to explore how to manage this - whether to have a break and up remaining payments or to extend for a couple of months - it will depend on whether the lease payment clawback is from gross or net salary. Either way, I have an arrangement which will continue and don't have the spectre of losing everything.

I will confess to nearly breaking down in tears when I got the news....

Great news!