Need help iva about to fail

cactus1190

Me and my partner have been in an iva for two years he was made redundant last year until then we didnt miss a payment . I carried on paying into it until january then it got too much we asked for a payment break and it was allowed on the terms it stated as soon as he got secure employment the contributions would have to recommence. He as only had agency work odd weeks or days so to us that isnt secure employment . Now there threatening to fail it because we didnt tell them what can we do as he still isnt working and only my wage is coming in.This is really upsetting as we dont want to go bankrupt but there asking for 10,000 to pay creditors off HELP.

RuthnJasper

Alright sweetie. MAIN THING - no-one is going to hunt you down and kill you in cold blood. It'll be OK.

First thing tomorrow - contact your IVA provider; they may be able to help you IF you are honest with them. When I fell on hard times I was able to re-negotiate my repayments; but I did contact them first, before defaulting on payments. It's probably not in their best interests to fail the IVA, so they may be willing to help you, even now. But you MUST be open and upfront with them.

Next - if the IVA company aren't able to negotiate any longer - get yourself some free advice from the CAB as soon as possible: http://www.adviceguide.org.uk/wales/debt_w/debt_help_with_debt_e.htm

But don't let this drag on for any longer. And if bankruptcy is the only option... well, at least you can face it together rather than alone and use the experience as one on which to build a better future.

In the meantime, get some sleep. And contact your IVA provider first thing and get it all out there in the open. It will help. trust me; I've been in the same position as you.

Best wishes. x

Anondebtadvisor

When you speak with your IVA company ask them about the possibilty of calling a creditors meeting and asking them to accept the payments you have made to date as final settlement of the IVA.

To do this they need to call a variation meeting to ask creditors if they will accept, it is the creditors decision and NOT the IVA companies so even if they say "oh creditors wont accept that" insisit they call a variation meeting.

Alternativley if you have someone who can give/lend you £3000 for example you could consider offering a sum of money in full and final settlement. It is in nobodys instrest for the IVA to fail at this stage.

cactus1190

This is the response we got ;
I apologise for the late response.
You have not paid any payment into your arrangement for the past 7 months, and failed to abide by the terms of your arrangement alongside the approval of the 6 months payment break agreed on 12th March 2013.

Although I sympathise with your current situation, if after 7 months, you cannot continue with your IVA payments, the only option is the failure of your arrangement. Your creditors cannot continue withholding payments until he finds permanent employment, as this could take anything from 1 month – 2 years for all they know.

Your variation report stated:

“The debtors will endeavour to keep the Supervisor informed of his employment search and of any future benefit entitlement. The debtors will inform the Supervisor immediately on securing further employment and provide her with evidence of his anticipated income.”

This would include any type of employment, such as agency, temporary etc. You failure to declare additional income which would have resulted in payments commencing to your arrangement.

As previously stated, the only suitable available option, is for you to offer a full and final lump sum into your arrangement, however this needs to be no less than £10,000.
I advise that he should find permanent employment before the 1 month Notice of Breach date passes, being 19th September 2013, then provide an income and expenditure showing the available surplus that can be into your arrangement, commencing from his first pay date, as well as your proposals to your creditors on how you intend to compensate them for the £1,703.64 worth of missed payments.

If, however by the 19th September 2013, either a full and final has not been offered, or the above has not been proposed, we will have no other option, than to return to your creditors for the failure of your arrangement.

Regards

Anondebtadvisor

Who is your IVA company?

I do not agree with the £10k figure in full and final, it is not the IVA companies decision!! It is the creditors decision to make at the variation meeting.

Do you have access to any money to offer in full and final settlement?? If so I suggest that you write to your IP informing them that want them to call a variation meeting offer £x in full and final settlement, if they refuse you can put in a complaint using the complaints gateways http://www.bis.gov.uk/insolvency/contact-us/IP-Complaints-Gateway