What happens if I'm unable to keep up with the IVA payments?
The IVA Variation Process
We receive a lot of calls and emails from the public asking; "What happens if I'm unable to keep up with the IVA payments?".
Please note that Money Advice Direct carry out a detailed income and expenditure analysis on all callers to the service. The IVA unit will not recommend an IVA unless they feel the client finds the IVA payment affordable.
However…..once in an IVA personal circumstances may change and you have become unable to keep up with the IVA payments.
It is important to remember not to panic if this happens. It does not necessarily mean that the IVA will be terminated.
When you entered into the IVA, it was on the basis of what was known at the time. Unfortunately sometimes things don’t go as planned and your circumstances can change for the worse -and sometimes for the better!
If you are made redundant for example, or change jobs and your income is lower, it will have an impact on your ability to repay your monthly IVA payments. If this happens, you should contact the IVA Supervisor to explain your change in circumstances and they will be able to advise you what will happen next.
In some situations, it may be possible to add on the missing payments at the end of the standard IVA period, but this is at the discretion of the Supervisor.
This can happen as a result of a change in personal circumstances, change in job or the loss of a job. If this happens, it is essential that you let the IVA Supervisor know so that they can reassess the situation for you.
You can never predict what is going to happen in the future. If you have a problem with making the payments, speak to the Supervisor, who will be able to look at the reason for you struggling to make the payments and advise you on what can be done.
Unable to keep up with the IVA payments – The IVA Variation Process
The IVA Variation process involves discussing with the Supervisor the nature of the variation and if they agree that it is an option, a new set of proposals will need to be drawn up and forwarded to you for you to sign and agree to.
Once these have been returned to the Supervisor, they are then presented to the creditors for their consideration.
The new Creditors Meeting will follow the same pattern as the original one. At least 75% in value of the creditor’s who vote, will need to accept the new proposal.
If you would like to know the process if you were unable to keep up with your IVA payments please complete the following form or telephone freephone 0800 074 6918.
IVA Knowledge Base Menu
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- Do I have to tell my partner if I do an IVA? |
- Does an IVA cover all of my debts? |
- What is the difference between a secured and unsecured debt? |
- Do creditors have to accept an IVA? |
- Can an individual creditor refuse to accept an IVA? |
- Will the IVA prevent my creditors taking further recovery action? |
- What if my circumstances change whilst in an IVA? |
- Can I cancel the IVA once it is set up? |
- What happens if I just stop paying into the IVA? |
- How long does it take to set up an IVA? |
- Will interest and other charges be frozen while the IVA is being set up? |
- Can a creditor take further recovery action before the IVA is approved? |
- What happens if the IVA is not approved? |
- What Does IVA Stand For? |
- How do I work out how much I can afford to pay per month in to an IVA? |
- I am considering an IVA. How does it work? |
- Do I have to attend IVA meetings, or can this all be done by post? |
- What do creditors expect from an IVA? |
- How likely is it that an IVA will be accepted? |
- Are all creditors forced to accept the IVA majority decision? |
- What happens if the creditors don't like the IVA deal? |
- What do I do if the IVA is rejected? |
- IVA - Individual Voluntary Arrangement |
- I've buried my head in the sand, now I've got a bankruptcy petition hearing next week. Can I do an IVA at this late stage?
- Will an IVA really write off all of my debts?
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- What if I win the lottery whilst in an IVA? |
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- Is an IVA more expensive than just going bankrupt?
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- What will happen to my car in an IVA? |
- I run a business. What will happen to my business in an IVA?
- Will my partner have to contribute to my IVA?
- My partner and I have joint debts. Can we lump them all together in the same IVA?
- What happens if I'm unable to keep up with the IVA payments?
- What happens at the end of the IVA arrangement?
- Are there any upfront fees with an IVA? |
- Why should I consider an IVA over bankruptcy? |
- What are the advantages of an IVA over a debt management plan? |
- How will an IVA Improve my life? |
- Is there immediate relief if I do an IVA? |
- How much debt do I need to do an IVA? |
- What types of debt can an IVA deal with? |
- Can utility bills be included in an IVA? |
- Will an IVA stop collection calls? |
- Will an IVA freeze my interest rates? |
- Will I have to sell my house if I do an IVA? |
- Will an IVA stop home repossession? |
- How will An IVA affect my home equity? |
- Can I keep my car if I do an IVA? |
- What assets might an IVA affect? |
- Will an IVA be reflected on my credit file? |
- Do I need to include all my creditors in an IVA? |
- Can I apply for credit while I'm in an IVA? |
- Will I need to change bank accounts in an IVA? |
- What will my monthly payment be on an IVA? |
- What if I am unable to keep up with my payments in an IVA? |
- Can my IVA payments go up? |
- Under what circumstances can I reduce my IVA payment? |
- Who will know if I do an IVA? |
- Will my landlord need to know if I do an IVA? |
- I've decided to do an IVA, should i stop paying my creditors now? |
- Will an IVA affect my employment or my ability to get a job? |
- I'm in an IVA and I've lost my job, what can I do? |
- What situations would prevent me from doing an IVA? |
- I've been told I can't do an IVA, what should I do? |
- Can I exit out of my IVA before five years? |
- Under what circumstances can an IVA proposal be rejected? |
- What percentage of IVA's are blocked by creditors? |
- What happens if my IVA fails? |
- What if I can't remortgage as per my IVA proposal? |
- My husband and I are considering an IVA as a solution to our £25,000 debt |
- What happens if I change from being employed to self employed during my IVA? |
- If my partner enters an IVA will I have to sell my car because it is registered in my name? |
- What happens if my income rises during an IVA, would the creditors want all of the increase? |
- What is the minimum level of debt for an IVA? Is it 12000 or 15000 pounds? |
- Can I keep my home if my IVA is accepted? |
- Will I have enough money to live if I go for an IVA? |
- Information on the IVA procedure in the UK |
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- IVA Debt Solution |
- Can I include HM Inland Revenue and Customs (TAX) debt in an IVA? |
- IVA Info |
- IVA-site
IVA's
The IVA Guide
Money Advice Direct has put together an IVA Guide based on the enquiries and questions that we receive at our helpline offices.
In the guide we cover such subjects as IVA Approval, early settlment of your IVA, missed IVA payments, IVA failure, additional debt claims and much more.
[click here for IVA Guide]
What is an IVA?
The IVA is an extremely powerful tool enabling you to clear your debt and return to a clean financial bill of health. Visit Money Advice Direct's Guide to Individual Voluntary Arrangements (IVAs).
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DANGER
Due to the tremendous demand for debt consolidation services the United Kingdom is now overloaded with debt management companies that contain misleading information. [more...]