Can I reduce my iva payments

davebeddo

At the moment I am suffering severe financial hardship. I have been in an iva for eighteen months.

However, in December my partner lost her job and since then we have been struggling to pay rent as well as utility bills.


At the moment I am a couple of months behind and am worried about court action.


Would I be able to reduce payments so that I am able to meet utility payments until until our circumstances improve?

flush_the_hamster

You need to immediately tell the supervisor of your IVA about your position. I got a maximum of 3 months behind on my payments and they allowed me to tag this onto the end of my agreement. Go anymore than that and you will default.

As it happened I adjusted my agreement with them to cover the missed payments split over the remainder of the IVA.

If it comes to it and you've decided that you cannot realistically afford these payments anymore due to the change in circumstances, then you can have your IVA reviewed. This does mean that all the creditors have to agree again to your proposal etc.

Hope things work out.

Whitetornado

Hi, Phone your IP, We were having the same problems, just could not afford everything. Our IVA was reviewed our creditors were contacted again and our payments changed from £285 per month to £100 per month with a 12 month extention. We are finding life so much easier now.

Charco_2

Yes, an IVA is a a formal agreement but it would be insane to suppose that that means it cannot be a little flexible too...

Research shows that up to 30% of all IVAs fail, now while some people on here would contend that that is because greedy IPs are mis-selling IVAs the biggest reason for failure is simply a change in circumstances. The more informed you keep your IP the more likely it is that (s)he can come up with solutions to the everyday problems that can adversely affect your IVA.

In your circumstances, the solution is going to have to include a payment scheme which sees you catching up with your rent and utilities - cant simply allow you to be made homeless! (If you'd informed the IP back in December though instead of trying to muddle on the your IVA repayments could have been temporarily reduced to allow you to afford your ongoing commitments)

KEEP YOUR IP INFORMED!

Speak to the IP and come back on to discuss the options he gives you now

And Good Luck!

Charco_2

The IP actually does have the power to alter your repayments by a small certain percentage WITHOUT having to go to a vote with your creditors... if it requires a change of more than this percentage then yes it will require a new vote!

If you fall the maximum three months behind with your repayments, the IP does not have a duty to default you or fail the IVA... he has a duty to take action yes, but if you keep your IP informed and as long as he is satisfied that you are not taking the hand and that you are genuinely trying your best then your IP can reduce the payments, extend the IVA, grant a reasonable payment holiday (you'll catch up later), or in extremely severe circumstances even end the IVA early successfully!