IVA Breech received - what now?

Kev-83

Hi

I received a notice of breech for my IVA and the letter says that to rectify it I have got to pay £1852. Obviously, this is unrealistic.

I have paid nearly 3 years of payments and that amount is my arrears when I haven't been able to meet the payment. In August I got made redundant and took the choice to go to university. I dropped out of uni after 2 months and since then have been unable to pay anything towards my IVA due to having very little income.

My last IVA statement shows that Unsecured debts lodged was 27012 and Lodged to Date is 25631. Does that mean that in three years I have only paid less 2 grand towards my debts?

I take it my IVA has now failed. Does this mean I have to go bankrupt?

Charco_2

No this does NOT mean your IVA has already failed but you need to speak to your IP very soon to come to some kind of arrangement. Obviously you cant be expected to pay almost £2k in one lump sum but you need to work out some way to make up the arrears.

Have you informed your IP about your situation - no job but looking!

You need to show willing to your IP or he will have to fail the IVA - it's not his choice, it's his duty! You might be able to arrange some kind of payment holiday though, until you do find gainful employment and can afford to make contributions to your IVA again.

SPEAK TO YOUR IP TO SEE WHAT THEY SAY ABOUT WAYS YOU MIGHT BE ABLE TO PROCEED, make sure any agreement is realistic though because if you breech it again you're not likely to have any bargaining chips next time round!

You are not compelled to go bankrupt if your IVA fails - and it is unlikely your IP or any of your creditors are going to pursue a bankruptcy for you...

Good Luck