Questions about Individual Voluntary Arrangements and Insolvency.

Moderators: TalbotWoods, JaneClack

By poohbear
#191302 HI Can someone please help me with my query. I have been in an IVA now for 12 months paying £290 a month. Recently i have had to reduce my payments to £90 a month. I am off work long term sick and am now only receiving incapacity benefits. I can still make £90.00 a month just. I have been told by my advisor that my creditors have now got to be asked if they will continue to allow me to pay reduced payments until I recover, but have been advised that they may fail my IVA. what does this mean? surely making some payments is preferential to no payments at all?
User avatar
By deej
#191314 most IVAs allow for a debtor to miss 3 full payments before the iva is breached so in your case this would be £870.
Your IP will now have to hold a meeting to see if your creditors will allow a payment break etc till you are better as the IVA is not sustainable on £90 a month. The creditors will vote as they did in the initial meeting. Speak to your IP and ask them to explain fully what is happening.