Iva. And Coronavirus

shopaholic2

Hi all I’m currently paying into an iva and wondered if anyone had been able to take a payment holiday from theirs? Husband is furloughed, son left college and now my daughters home as uni has finished and can’t get work. 4 adults in the house and only 1 income at 80%, plus my benefits. I will approach the iva company and ask but wondered if anyone else had taken a payment break or if it’s even a thing? Thanks 

sourcrates

Hi,

Yes its a thing, its in the terms and conditions of your arrangement, if its a standard IVA, as most are, the IP has discretion to allow payment breaks, and/or payment reductions of up to 15%, without having to refer back to your creditors.

New guidence has been issued to help deal with covid-19 issues, I suggest you contact your IP for help.

Just be aware that any missed or reduced payments must be made up at the end of your arrangement, so for example, if you take a 3 month payment break, your arrangement will be extended by 3 months to compensate for this