IVA and change of circumstances HELP!

ach_2

Hi guys
I have an IVA with payplan since Feb 2008 and it ends in Feb 2013. Currently my wife and I both work full time so my income and expenditure is based on both our incomes. My wife has found out she may be pregnant and therefore will not be working for some time now and we will be relying solely on my income and I obvoiously wont be able to afford the same payments as I'm paying now. Does anyone know if my IVA payments can change to compensate for this loss of income or if not what I can do?
Thanks in advance

Charco_2

Yes defintiely, you need to discuss it with your IP but there are options.

Obviously the first thing you're going to need to do is draw up a new I&E with your IP to see what is and isn't affordable (actually before that you might need to go find out what your household income is going to be - maternity pay and various benefits etc that you might be eligible for!) Some costs are going to rise (a few may fall) and you'll find out what you can reasonably afford to offer instead of what you are currently offering.

After that you can discuss what options are available.
1. Offer a reduced amount to your creditors and see if it would be accepted
2. Offer a reduced amount to your creditors for a year rising again when/if your wife returns to work
3. Fail the IVA and go Bankrupt
4. Would a family member be able to offer a lump sum to buy you out...

This is not an exhaustable list, there are other things discuss too but discuss them with your IP and soon... the sooner you know your options the sooner you'll know what is going to be expected of you! Even if your wife only got pregnant this morning and nothing will change for the next nine months, FIND OUT NOW because there's no point paying your IVA for the next 9 months if it's just going to fail then!

Sorry if this reply is curt if you want to keep asking questions i'm sure people will be happy to answer them. Definitely come back to discuss the options your IP gives you!

ach_2

Very helpful thankyou

emma-uk

Just to add, I have an IVA with Payplan and gave birth to my Son in May 2009. They were fantastic and allowed me to take a payment break of 6 months whilst I was off work. I am now back to work and took option 4 as my partner is in a posititon to help. My F&F meeting is tomorrow with an offer of approx 40% of the remaining payments as costs have increased and we having to move into a bigger property (we rent) so there is no surplus income.