variation meeting

danp100

Hi,
i posted on here about a month ago since i took out some additional credit whilst in my iva. I have since told my IP and there is now a variation meeting set up for early Feb. To clear my additional debt we are proposing a 3 month payment break and then extending the agreement. the letter that i have recieved gives my creditors options which i think they will vote on, one of which being the proposal i have just mentioned. The scary part is where one option is to present a petition for bankruptcy. So i am wondering how likely it is that my proposal is accepted. i am hoping the bankruptcy part is just something that has to be included as an option? thanks for the advice

UpToMyNeckInIt

Hi danp100,

sorry to hear about your situation, and I appreciate that this must be very stressful.

I am sure your IP will still sell the IVA to your creditors as being the option able to give the biggest return, but have to provide the other 'options' as you suggest (a bit like the original IVA creditor's meeting, when you took out the proposal I guess).

Moving forward, is there any reason why BR may not be an option for you (I assume you have assets to protect etc?).

Also, is there any specific reason why you took the extra credit in the first place? Are you generally struggling with your IVA? If so, are you properly reviewing your expenditure etc? ...All stuff you need to discuss with your IP.

Hopefully, one of the forum experts will be along shortly to provide some better advice.

Good luck.

longtermplanner

It's hard to see why your creditors would vote for bankruptcy in these circumstances just to punish you for breaking the IVA rules if there is a real chance that you can complete the IVA.

But as UpToMyNeck says, the worrying thing is why you took out the extra credit? If you were struggling with the IVA, do you really expect to be able to carry on with the payments? If not, then it might be better to face that now, rather than hope your creditors vote to continue the IVA nd then find you can';t make it work a year or more down the line.

danp100

Hi,
thanks for the replies. my initial debt was due to gambling and unfortunately i slipped back into it for a while and so that where the additional credit came from. i am back on track again now with the gambling issue and so affording the iva is not a problem. I really hope my creditors see sense and accept the proposals, since they will get exactly what we initally agreed. I cant see any reason why this shouldnt be accepted but obviously it is very worrying.
my other issue is that the proposal is for a payment break jan-march with payments resuming in april, however the meeting isnt until feb 12th. What should i do about jan's payment that i cannot currently afford. I think i will have to skip this payment, which sort of makes sense considering that is the proposal?
many thanks for any advice
dan

longtermplanner

You really need to talk to your IP about that.