2nd maternity paymeny break on IVA??

Hi,
My husband and I are on 2nd year of IVA. Just found out I'm pregnant but not worrying as Stepchange have been brilliant and I know we can have a payment break when I go on maternity. Hypothetically, if I were to take a 9 month payment break with this child but then fall pregnant with another - would I be able to take another 9 month maternity break or would the IVA fail?? 🤔

I will be 34 when this baby comes and the clock's ticking. Everyone says not to put my life on hold but I can't have the IVA fail as we will loose the roof over our heads 😭 So will have to hold off any more children if a second payment break isn't allowed :( We pay £430 a month to the IVA and would be happy to continue for as long as needed if could have maternity breaks. We've always informed them of extra income and paid extra for quite a lot of the months so hoping they can show us goodwill with our commitment to paying as much back as possible...

Anyone had a 2nd payment break successfully? Any advice welcome! Xx

Comments

  • i wouldnt imagine that an IP would suspend payments for 9 months, let alone a second time for another 9 months, but each IP is different, so you would need to address this with them and see what they say.
    you would get SMP, so dependant on your current wage, you would expect, IMO, to pay as a minimum a smaller amount. if you currently take home £1k, and your SMP is £500, i would expect to still pay a minimum of £215, as you have not lost all your income.

    do you get enhanced SMP from work?

    your IVA payments can be varied, but this will come down to your IP. also, have you planned what will happen after 9 months when you return to work? childcare is expensive, unless you have free childcare with relatives etc

    out of interest, why are you on an IVA? mortgage? assets? could be that bankruptcy may be the better option for you now that a family is starting
  • Thanks for reply - on iVA due to mainly hubbies debt combined with some of mine, totalling £50grand. It was the only option after having 1st child and my hours reducing in work alongside childcare costs, we couldn't make the payments. My 1st child will be on the 30 hours free childcare scheme by the time I return to work so once back in work, we should be paying roughly the same amount as we do now. Can't go down bankruptcy route as need our home for our growing family.

    I'm sure we were told we could have a maximum of a 9 month payment break - will have to check that. Going to wait until I'm 3 months before calling and chatting to them. Just would live to have 3 children but worried about the IVA failing :-(
  • Would you need 9 months? The first months pay packet it usually around 90% isn't it? So could you maintain your payment that month given you will have reduced travel costs.

    Could you return to work after 6 months?

    This would mean only a 5 month payment break.

    Would you be able to maintain any payment whilst on maternity? If you could say pay half payments a month you could have half payment breaks each month.

    Many IP are unlikely to authorise 9 payment holidays for maternity, especially so early in your IVA, and 9 months is for exceptional circumstances most will only do 6 before going back to creditors. 9 is the absolute max they can do without going back to creditors and doing a variation.

    If you had a 3rd child (2nd whilst on IVA) then a variation would be required. if you can avoid this is is preferable so you really need to consider what your I&E will be whilst on maternity and what payment level you can afford to maintain and how long you are taking off. Yes you may have to go back earlier than you prefer but if this means you get your much wanted 3rd child this may be worth it.
  • Just asking, and it's none of my business, but have you budgeted for childcare?
  • silvercar
    silvercar Posts: 46,865
    Academoney Grad Name Dropper Photogenic First Anniversary
    Ambassador
    ramtops wrote: »
    Just asking, and it's none of my business, but have you budgeted for childcare?

    Answered already:
    My 1st child will be on the 30 hours free childcare scheme by the time I return to work so once back in work, we should be paying roughly the same amount as we do now.

    though a third child may have an impact.
    I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 342.5K Banking & Borrowing
  • 249.9K Reduce Debt & Boost Income
  • 449.4K Spending & Discounts
  • 234.6K Work, Benefits & Business
  • 607.1K Mortgages, Homes & Bills
  • 172.8K Life & Family
  • 247.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards