IVA arrears

fatboy88

Hi, not sure if someone can help.

I missed a payment in June as i needed the extra money to fix my car as it was a friends repair job i couldnt get a receipt which Payplan keep asking for.
Now they have placed my account in arrears, what does this actually mean rather than suspended payment. I was always on the assumption i had 12 payments holiday if needed. They are a pain to get hold of as they only work 9-5 like everyone else but the call centre cant discuss your case or general IVA advice.
I'm struggling anyway so will they file for bankruptcy if i miss 3 payments and i dont need to pay the fee

thanks
will

Nargleblast

Before missing payments on an IVA you have to contact your IP and explain about the unexpected expense coming up, then they would normally agree to a revised or zero payment for the next month to cover it. If you did not contact them, but just cancelled the payment, then you have breached the terms of your contract and understandably they consider you to be in arrears. I think you should contact them as a matter of urgency, explain about the car repairs and see if you can come to some agreement with them about the missed payment. They might agree to just add it on to the end of the term, but you need to talk to them. It is not in anyone's best interest for your IVA to fail so don't be afraid to raise any problems with them.

fatboy88

thanks for the reply

I rang them to let them know before hand but the problem is they want a receipt for a cash job to repair by a friend as a favour who works at a garage so he is reluctant to give a receipt

Charco_2

I wouldn't worry about it. You generally need to miss three consecutive payments before your IVA is in jeopardy of failure, so you should just be able to stick at it with no adverse outcome. You make your 60 payments, it'll just take 61 months.

If you are waiting for your IP to bankrupt you then i wouldn't hold your breath. Unless in serious circumstances, your creditors are not going to vote to use THEIR money to end your indebted situation.

If you want to go bankrupt then why not contact IVA Watchdog who will be happy to extricate you from your agreement (I AM JOKING!).
If you really want to go bankrupt, wait and fail your IVA. When you have your clearance from the IVA then use £510 you've saved from not paying your IVA and go bankrupt (speak to someone first to see if this is a good option for you, personally I'd finish the IVA).

Even if your friend did do you a favour fixing your car and doesn't want to give a receipt for his work, surely there were parts involved that you paid for!? It also shouldn't Payplan matter that much to Payplan either though so long as you maintain you payments for the remainder of your IVA - if another emergency crops up, let Payplan know in advance!