First Payment.

[Lapdog]

Just a quick question.

My first payment towards IVA is due out very shortly. Unfortunately Murphy and his law being what it is i have just been lumbered with a couple of situations which will make my outgoings for the next month very dicey.

I just wondered if it's possible to defer the first payment for a month as the last thing i want is to start off on the back foot before a payment is even made?

[Sadsack]

Hi Lapdog and welcome

Has your IVA been accepted? The reason I ask is that prior to my IVA being accepted, I made an upfront payment which scared me a little. There are others on this site who are not in favour of making any upfront fees.

If your IVA has not yet gone through, then speak to your supervisor who is putting everything together for you and let them know the difficulty. If your IVA has been accepted, you will still need to speak to your IVA company and explain it to them. I am sure that there is a way around this for you.

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

[Lapdog]

Cheers Sadsack.
Yeah it's all accepted and Direct Debit payments are set for the 1st of the month. I just wanted to know whether it is possible to put this payment back a month so I'm 100% on track when the payments start.

[MelanieGiles]

Hi Lapdog

Just explain this to your IP and I am sure it won't be a problem. Most IVAs have a three missed payments window built in to them, but do try and not miss any more if you can help it!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[iva experts]

I agree with those posted that the best way forward here is to contact your Supervisor (I.P) as soon as possible. It shouldn't cause any problems.

Best Regards. IVA Experts

[Lapdog]

Cheers for that guys.

Just a quickie again. Does it still count as a "missed payment" even if i haven't actually started the payment process yet.?

[MelanieGiles]

Yes - payments are usually payable within the month following the IVA acceptance, so if one has not been paid by this date it will register as unpaid.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Lapdog]

Am now in a real spot of bother.

Have been told by my IP that i can't "miss a payemnt" as such and that i would be in arrears and that it would have to be settled by the yearly review. They said i could add £40 onto my monthly payments in order to correct the arrears in the 12 month timescale. Unfortunately this is just not going to be practical and will take me well over what i can afford.

I'm not sure what other options are open to me now other than cancelling my payment due in June and using that money to file for bankruptcy.

How will the OR view this and will it affect my bankruptcy case if my IVA has failed without ever making a payment?

[Adam Davies]

Lapdog
One missed payment will not jeopardise your IVA,however if you feel that you are likely to have an ongoing problem then you may well be best to consider bankruprcy and the fact that you hav not made a payment will not affect this.
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[MelanieGiles]

Check your proposal document to see what the provision there is for missing payments. In my proposals we always allow a three month leeway, but I also like to see missed payments caught up over the following months.

If you are unable to find agreement with your IP, and cannot afford to make the payment for reasons which can be justified, you may have no alternative but to petition for bankruptcy - but this seems awfully inflexible and a real shame to me if you are forced to do this.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Lapdog]

Thanks for the advice guys. I will check my proposal tonight but the woman i spoke to seemed quite positive that i had no provision for any missed payments and that any arrears would have to be paid back in time for the yearly review.

Have to say i do find this odd as all I'm really doing is asking to start the payment process 1 month later and it will finish 1 month later.

In reality bankruptcy was always the best option for me but i really didn't want to go down that route. Looks like i may have to anyway. Also not looking forward to the whole rigmarole of form filling in all over again.

[MelanieGiles]

It is a nonsense that you would be facing bankruptcy for a first late payment - speak to the IP directly as I am sure that you can get this resolved.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[thebear29uk]

Hi Lapdog

Do you feel comfortable naming the IP company you are with? Is it one of the larger organisations? Its just a couple of comments on these posts keep cropping up. Firstly you say "the lady I spoke to seemed quite positive...." and then Melanie replies "speak to the IP directly..."

I have lost count of the number of posts where members are trying to discuss something but never actually get through to their IP. No wonder the creditors are ganging together to get IP fees reduced. They probably think they are not getting value for money when IVA factories are not giving direct contact with IPs but having somebody from the red/blue/turquoise team answer questions they are possibly not trained to know the legal response to.

I think a bonus payment to IPs for completed IVAs would result in better researched proposals and a willingness to assist when the IVA is showing signs of failing rather than the current system of them being paid whatever the outcome.

I'll say here and now that this is aimed at the factories and not IPs like Melanie who have a very good success rate and excellent working relationships with the voting companies.

Lets be honest here. Would these companies have grown so quickly and have huge tv advertising budgets if there wasn't so much money to be made by proposing IVAs, some of which that might never reach year 5.

Just my own views

Dave

[tracy.h]

Hi Dave
I agree with you,but surely people that answer calls and give advise for ip's must surely have some form of training,they are dealing with legal requirements,and to give the wrong advise would surely be misconduct and may bring trouble to the ip's door if the information they provide is wrong.
I thought surely training must be given as they are dealing with legaly binding contracts that have to stand up in a court of law.
Obviously i personaly don't know the qualifications that are required to carry out this kind of work.

Tracy

[Lapdog]

Have checked my proposal and although it doesn't actually say anything about being allowed to miss payments as such, it does say that the arrangement will be broken if more than 3 payments are missed. It also clearly states that the payment time must not exceed 72 months , which i would translate to mean that completing payment on the 61st month (IE 1 month after the 5 year period ) would be OK.

With this in mind i have made my payment for this month to my IP and will continue to make those monthly payments as according to my proposal i have done nothing to breach the agreement in doing so.