Freezing a Payment on IVA for Xmas

irishgeal1 · 14 November 2018 at 11:00AM

Hi guys,

Just hoping to get some advice if possible.

In summary when we set up our IVA in June we were unequivocally told by our practitioner (have email confirmation etc) we could miss 3 payments and that most people freeze the payment over Xmas. The company have been very professional and knowledgeable to date so took this as fact.

However when I contacted the company yesterday to begin steps to freeze December payment we were told this isn't the case and they apologised for misleading information, as creditors wouldn’t accept Xmas as an excuse.
(Which in hindsight seems obvious).

It's really left us in a grim situation with two toddlers coming into Christmas as when submitting our financial info in May we were honest to the penny as we wanted to ensure IVA was accepted and didn't legislate for a contingency or putting anything aside for Xmas, as we were advised we could freeze payment.

This payment equates to approx £600.00, which whilst I appreciate it’s not good putting all your eggs in 1 basket, we were banking it.

So just wondering if anyone has any advice on a) freezing a payment or b) is it worth chasing c) consequences of simply missing one payment?

Realistically it now means have to get a lend of money from a family member (with all the shame and stress that brings) which isn’t guaranteed at all.

Thanks in advance Joe

Browntoa · 14 November 2018 at 11:01AM

Who are managing the IVA

irishgeal1 · 14 November 2018 at 11:51AM

A company called McCambridge Duffy who in fairness have been excellent to date.

foxy-stoat · 14 November 2018 at 3:32PM

Spend less this christmas would be the answer, dont borrow money just to buy presents, its a concept that you will have to get used to for the next 5/6 years - if you miss a payment now then you will have to pay it at the annual review time but you may get charged. Check your paperwork.

irishgeal1 · 14 November 2018 at 3:52PM

'Great Advice' Foxy Stoat hadn't thought of that.:doh:

I will just tell the kids Santa didn't come this year.

In hindsight I should have done what everyone seems to do and add £££ for pets and dog food, as being honest seems to get you no where.

foxy-stoat · 14 November 2018 at 3:59PM

irishgeal1 wrote: »

will just tell the kids Santa didn't come this year.

Just tell them Santa will have less presents for them this year or buy some secondhand stuff or spend a lot less.

£600 for 2 toddlers is a bit dear for me, even more so when you have gone into an IVA and will have a monthly budget to stick to. Have you factored in £50 a month for next years christmas budget?

sourcrates · 14 November 2018 at 5:02PM

Agree with post #4#.

Any missed or frozen payments have to be made up during the same financial year, the only exception is if your payments are permanently reduced at a creditors meeting.

PrettyKittyKat · 14 November 2018 at 7:19PM

The payment holidays that can be authorised are for 'unexpected emergency expenditure.' Christmas is neither unexpected nor an emergency.

I know it can feel like you have to spend 100's at Christmas, especially when children are involved. But Christmas really is all about the traditions of Christmas and being together THAT is the part your children will remember when they are older. They will remember the fact you made cupcakes to leave out for Santa, snuggled down to watch a christmas film with a bag of popcorn and laughed during games on Christmas day, not that they received £300 worth of gifts. Look on the christmas thread in the forum there are lots of ideas of how to get or make great gifts for a much lower cost.

Yes of course you want to get them gifts. However, they are toddlers they have no concept of cost or quantity. Head to home bargains, eBay, facebook selling pages etc. You can often get brand new things or hardly used things for next to nothing! For example, we have a guy coming to pick up a like new table football set this weekend I am selling for £3 to give his son for xmas. It is boxed and probably cost about £25 overall.

You will need to get used to the fact that Christmas won't be about excessive spending on gifts for the next 5 years as even with the 12 months notice as someone has already pointed out, how are you doing to put aside £50 per month anyway? That's a big chunk of your monthly allowances!

Enterprise_1701C · 14 November 2018 at 7:50PM

We were extremely broke one Christmas (well, more than one) and ended up getting the kids' presents from car boot sales. They never knew the difference.

Craig1981 · 15 November 2018 at 7:28AM

your financial statement with the IVA would include gifts/birthdays/christmas etc

this is included in DRO and i had it on mine when in an IVA - this was part of monthly expenditure, so was saved up to use at Christmas

Christmas is no excuse to miss payments of any kind

irishgeal1 · 15 November 2018 at 12:01PM

Hi guys,

Thanks for the advice it's definitely something we will take into account this year.

I'm not too proud to admit our spending habits are atrocious however we are trying really hard to work on it. The IVA process took alot 'out of us' but we know it will be worth it in the long wrong.

We've been really diligent with our spending since our IVA started in June (having money in our bank accounts at the end of the month for the first time in 18 years) but honestly had in our heads December was a 'free' month rightly or wrongly.

Freezing a Payment on IVA for Xmas

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