both my wife and I have been in an interlocking IVA since 2011 and I believe this particular arrangement is not working.
I had to reduce my income last year due to ill health and had a variation meeting to address that. However we are still struggling other month and now work to a very strict budget but that stills leaves us turning to payday loans at times.
I know this is wrong as our income has reduced and our outgoings have increased ie rent/council tax/electric. The problem was that unforeseen financial demands hit us after the iva was agreed and even though we tried to put these debts onto the plan it was too late. this has meant we do not have all our liabilities under the IVA umbrella.
I think the best thing to happen would be to fail this arrangement and then arrange another IVA which will allow both ourselves and creditors start afresh with a true proposal. Would this be possible or does it just mean we would go bankrupt
It could be done, but you will lose a good chunk of what you have paid so far in fees and there is the distinct possibility that the creditors will add back on unpaid interest, substantially increasing the debt.
Then .... they will have to be told why the current arrangement failed and decide whether a second bite at the cherry will work.
I would suggest you sit down with your IP for a full and frank discussion to see if there is any way forward with the current arrangement ... maybe by extending the term.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
