IVA and cost of living crisis

pulman69

There was an excellent article in the Guardian on Saturday regarding new guidance issued by The Insolvency Service to insolvency firms who are now obliged to take soaring living costs into account if you are struggling with IVA payments.

Because many IVA agreements were drafted before the individual had knowledge of the current financial climate, rising inflation and increases in monthly outgoings the individual may struggle to maintain payments and can now seek a reduction in payments (without having to wait for the normal annual review).

In addition the article states in some cases the IVA company may also consider ending the IVA if payments drop below a certain level (over 50% of current contributions).

My advice is if anybody is struggling do not hesitate to make contact with your IVA company citing the current cost of living crisis and recent new guidance related to a request for reduction in monthly payments. 

Sizzers

Nothing for bankrupts, though, in The Guardian or elsewhere.

fatbelly

There's a sensible article on this by Debt Camel

https://debtcamel.co.uk/help-ivas-cost-of-living/

I've posted it on the IVA board too. Thanks for the nudge.