www.iva.co.uk

Was looking for some advice from you good people in the know.

Been paying IVA at £800 a month for 3 years now. My wife had another baby in December and we arranged a 6 month payment break. However, since then her company has gone into liquidation and there is no job to go back to. It will now be a drastic reduction in income for us and the IVA will no longer be affordable. If she can get another job somewhere it is unlikely it will even cover the childcare costs (we have 3 kids now)

Someone suggested to me that I could offer payments made to date as a full and final settlement. I don't understand why that would even be a possibility? Are the talking rubbish?
There is probably approx £50k equity in the property if that makes any difference?

Any help appreciated.

Apologies for posting in wrong section!! [:I]

You will need to speak to your IP and arrange a variation meeting. Based on your income alone, do you still have any disposable income?

No disposal income at all based on my income alone.

Are you able to release any equity at all from your property? Did you have a minimum dividend clause in your Proposal?

Very unlikely we would be able to release any equity.
On standard variable rate with existing lender as even they wont give us any kind of new deal/fixed rate etc.

Not sure about the minimum dividend clause? GT are our IP.

Ok. The best thing you can do is speak to your IP and see if a variation meeting can be called. If there's a minimum dividend modification, they will need to ask creditors to see if it can be removed. I do know of cases where payments made to date are accepted in full and final settlement. However, your IP may call a variation meeting to ask your creditors for another payment break whilst your wife looks for another job. In reality you've promised creditors to pay £48k and have only paid in £28,800, however it'll be down to your IP to decide on where you go from here. Good luck.

Thanks for the advice. Much appreciated.

This sort of variaton is very common these days, and personally I have never had one turned down, so give it a go as there is no real alterntive but bankruptcy proceedings - in which case your home will be affected.

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by MelanieGiles

This sort of variaton is very common these days, and personally I have never had one turned down, so give it a go as there is no real alterntive but bankruptcy proceedings - in which case your home will be affected.

Forgive my ignorance but when you say 'this sort of variation' do you mean payments made to date being accepted as a full and final settlement?

Wouldn't the creditors just say 'no thanks' and petition for bankruptcy so they could get their hands on any possible equity in the property?

Bump[:)]

Can a mod move this thread to the correct section also please? [:I]

Yes - that is what I meant Lord Carson, and sorry to take so long to respond but I didn't pick up your earlier posting.

Hope that Melanie's reply has reassured you and you can move forward with asking for the variation. All the best.

Good luck! Hope you get sorted soon. It must be very worrying for you both x

Thanks for the replies.
Going to contact IP at the end of April and will let you know how we get on.
Keep your fingers, toes and eyes crossed for us.
Cheers,
Lord Carson