What happens in an IVA if suddenly unemployed?

john10001

What would happen if you're in an IVA and you suddenly became unemployed?

Does the IVA then fail and they make you bankrupt through the courts?

Or, do they suspend the IVA until you are once again employed and can resume payments into the IVA?

UpToMyNeckInIt

john10001 wrote: »

What would happen if you're in an IVA and you suddenly became unemployed?

Does the IVA then fail and they make you bankrupt through the courts?

Or, do they suspend the IVA until you are once again employed and can resume payments into the IVA?

Are we talking 'what ifs' here, or is your job under threat right now?

Either / or outcome is a possibility for sure, if you are unable to maintain your IVA payment.

A lot would depend on how flexible you IP is (this is where choosing a good one to start with comes into its own), and your likelihood of finding alternate employment within a reasonable timeframe.

Other examples I've come across include people in Year 4 of the IVA, being made redundant, and using some/all of the redundancy payout to make a 'full & final settlement' early, sometimes with an eventual dividend less than originally agreed by the creditors. Some people have also been lucky enough to have their IVA merely concluded early without further payment.

Again though, a lot depends on your IVA provider, how willing they are to fight your corner, and how much has already been paid into the IVA.

My advice: Choose wisely, and hope you don't lose your job of course!!!

Anondebtadvisor

The IVA protocol allows for a 6 month payment break in such circumstances and the missed payments added onto the end.

This of course only applies if you IVA is Protocol compliant