If you can’t make the payment to your Individual Voluntary Arrangement (IVA) this month, don’t panic! There may be options for you to cope and get your IVA back on track.
IMPORTANT in 2022 there is now a special case – if you cannot afford the repayments mainly because of rising prices and bills. For that situation new rules have been introduced and there is a LOT more help you can get – see Help with IVAs if you can’t pay because of the cost of living. The article here isn’t relevant if inflation is the cause of your difficulty.
This article covers the general case when you cannot afford the payments to your IVA for other reasons. This is very common – five or six years is a long time for everything to go smoothly in your life.
You do need to talk to your IVA firm even if you know the problem is very temporary and you can pay a few weeks late.
If your problem is longer term, you don’t have to wait for your annual review. Talk to your IVA firm about getting your IVA payments reduced.
Contents
What can cause problems for IVAs
Increases in your expenses can make your IVA payments unaffordable:
- a new baby, increased childcare costs, higher mortgage payments or many other cost of living increases ;
- large, unexpected expenditure such as a new boiler or expensive car repairs;
- having your car finance end. This is a very specific case, so read Car Finance in IVAs for what your options will be.
Other times a crisis happens because your income is reduced:
- losing your job or having your hours cut;
- lower profits if you are self-employed;
- being unable to work;
- having a cut in benefits.
Take a payment break
IVAs have terms included that allow some flexibility if you have an unexpected one-off expense or a drop in income that may be temporary.
This is often the ‘first response’ if your IVA seems to be running into serious problems – take a break and see if things improve by the end of it.
If you have a large unexpected expense, a payment break (or reduced payments) will let you save up the money to replace the boiler or even buy a cheap second-hand car if your car finance has ended.
Your IVA supervisor has to approve it, so you won’t be able to have a break to pay for a holiday.
Typical break terms
The common terms are:
- you can have payment breaks or make reduced payments for the equivalent of 9 months payments.
So if you could pay half your normal payments for a 6 month period, this would count as “3 months” of the maximum 9 months used. - this doesn’t have to be taken as a single break.
- the reduction in payments will be made up by adding on up to 12 months more at the end of your IVA.
If you have a minor problem don’t take a break for longer than you need.
Think of these automatic 9 months breaks as 9 important cards that you hold in your hand to get you through to the end of the IVA – if you waste a couple early on you won’t have them later when you may need them with a bigger problem.
Also it’s good for the IVA to end as soon as possible. When you are just a year in, it doesn’t seem important if your IVA will go on for another 4 years 6 months or 5 years – but it will later on…
And the longer the IVA goes on, the more chance of more problems occurring.
Not enough?
Payment breaks work well for short-term problems.
But they won’t help if the problem is general rising prices. There is no sign that your energy bills or grocery bills are going to drop to what they were in 2022.
So if your IVA firm suggests a payment break, ask yourself if anything will be different at the end of it… If the answer is no, tell your IVA firm you need a different solution, such as reducing your payments.
Payment breaks also work better if you are making large monthly payments. If you are paying £350 a month, then you can save up to replace something essential quicker than if you are only paying £100 a month.
Lower payments
Cut payments by 15%
Most IVAs have the following term, giving your IVA firm the discretion to reduce your payments if your expenses have risen or income has reduced:
The supervisor will be able to reduce the contribution by up to 15% in total (relative to the original proposal or last agreed variation) without referring back to creditors, to reflect changes in income and expenditure, such change to be reported in the next annual review.
This 15% reduction isn’t much. But sometimes an extra £32 a month can make all the difference between being able to continue with your IVA or not.
Larger reductions are possible but these have to be approved. Your IVA firm will propose a “variation” to your creditors who have to vote to accept it. The problem comes when your payments would be reduced below the amount that is practical.
Cut payments by up to 50% for cost of living problems
In June 2022, new guidance was issued to IVA firms about customers who are struggling with the IVA payments because of the large rises in bills and prices.
This is MUCH more generous – no-one wants thousand sof IVAs failing because of this.
See Help with IVAs if you can’t pay because of the cost of living which looks at the help that is available and talking to your IVA firm about this.
Redundancy
You can normally keep 6 months worth of pay from your redundancy pay and the rest is paid into your IVA for your creditors. That six months money will let you carry on paying your IVA while you look for another job.
See What happens in an IVA if you are made redundant for more details.
What happens if you can’t get back on track
The IVA gives your IVA firm a lot of discretion about what can be done if your IVA is failing. Here is a typical term:
if the Supervisor feels it appropriate seek creditor views to do one of the following:
- vary the terms of the arrangement, or
- issue a certificate (“Certificate of Termination”) terminating the arrangement by reason of the breach; and/or
- present a petition for the individual’s bankruptcy
That doesn’t give you much of a clue about what will happen and may sound very scary. Let’s look at the three options.
Make you bankrupt
If your IVA is in trouble because you have lost your job or your income has been reduced, it is very unlikely that your IP would consider bankruptcy.
This option is intended more for “won’t pays” rather than “can’t pays”. For example, if you were made redundant then got another job and didn’t tell your IP about your redundancy money.
Vary the terms – completion on the basis of fund paid to date
The best alternative for you, if your creditors will agree, is for your IVA firm to propose a variation that your IVA is just completed even though you haven’t got to the end. Your IVA firm may use the phrase “on the basis of funds paid to date” – this means you don’t have to pay any more.
This is more likely to be agreed the closer you are to the end of your IVA. In your last year it is very likely, in your first year it would be very rare.
Other variations – lower payments, longer term etc
If you can make lower payments, these could be proposed, perhaps also extending the term of your IVA. But be careful of committing yourself to something that is just going on for too long, especially if you think your circumstances are going to get more difficult over the next few years.
It could be better for you to choose to let your IVA fail, see below, especially if you are less than halfway through your IVA.
Could a relative or your partner make an offer to settle the IVA? Read How much should I offer to settle my IVA early? if you think this might be an option.
If you have a house with equity, you may want to consider selling the house to end the IVA. If one of the reasons you have financial problems is the high cost of your mortgage or secured loan, this could be a good idea. But read Can I sell my house to end my IVA? which looks at how this should be done and the possible problems.
Terminate your IVA (“fail your IVA”) – sometimes a good option!
If there are no ways to rescue your IVA and your IVA firm doesn’t want to pay to make you bankrupt, then your IVA will fail. In 2020 more than a quarter of IVAs were failing even before Covid-19 hit.
This isn’t always a disaster.
There are many people that have been “sold” an IVA that was always going to prove difficult and some of them should have been advised to go for a Debt Relief Order or bankruptcy at the beginning, instead of an IVA.
- Read Should I switch to a DRO from an IVA? which looks at whether you should make the positive choice to do this. Your IVA firm may be talking about payment breaks and extending the term of your IVA, but if you are currently struggling and meet the DRO criteria, that could be a much better option for you. And DRO eligibility criteria have been relaxed, so you may now qualify for one even if you didn’t when your IVA started.
- Bankruptcy isn’t nearly as scary as people think, most people don’t have to make any payments at all. Unless you have a house with equity you should seriously consider it.
What should you do now?
If you have an IVA and you are struggling, have a look at the terms of your IVA and see which of the points listed here are included in your agreement. Then call your IVA firm and discuss how to proceed.
If that seems too scary, talk to a good debt adviser first, so they can help you see what your options are.
Your 5 options when an IVA fails
Inflation? – get lower IVA payments
What happens in an IVA annual review
Mike says
I have a iva in place for the last 3 yrs I have not had a statement from the people looking after my iva I have had a statement from the company which hsbc sold my dept to and its still the same amount it was when I started my repayments
Sara (Debt Camel) says
Hi Mike, providing your IVA company is still in touch with you – you are having annual reviews? – this probably isn’t anything to worry about. At the start of an IVA most of your payments go towards the IVA company’s fees. If you are concerned, ask your IVA company to explain when there will be distribution to your creditors.
S says
Hi
I entered into an IVA in January this year with Payplan.
I have debts around £23k ( one being HMRC).
I advised Payplan at the time that I would be changing job in March with the same salary.
My council tax has gone up by £23 a month ( £23 above the figure in my plan) and under new legislation I have to pay 5% of my salary to a pension.
I now have a negative balance of minus £53 a month on my income / expenditure
Payplan are now saying my IVA is not suitable but have offered no alternative solution or comments..
What can I do ?
Rachael says
I have an IVA but am now expecting a baby this is going to make making the payments unmanagable what can I do?
Sara (Debt Camel) says
This depends on whether you just need a payment break – in which case ask your IVA firm for one.
Or if the payments wont be affordable when you are back at work because of the childcare costs – in which case talk to Citizens Advice now about failing your IVA now and getting a DRO instead. This is best done now rather than after a 6 month payment break delay, which just delays the time it is all settled.
Jim says
I’ve been in a iva with Knightsbridge for around 2 years I’ve had a change of job for the last year or so but working miles from home so around £300 a month. I’ve had a few problems with them in the past in regards to asking them for a brake in payments because of a car repairs and them still taking the money of my account.
Now I’ve had my 1st review and because my earning’s are more my payments have gone up! From £120 to £280 a month, the letter that was sent from them was Worrying. I did a brake down of my cost and I’m left with hardly anything fuel cost is the main issue because I work 80miles from home! I sent all this off to them when I did a income form.
Where do I stand with the payments I can’t afford to pay the extra money I can’t call them as it’s the week end so I have to worry all week end. My Qs is can I refuse to pay £300 a month I just about managed the £120 I believe they haven’t taken in account my fuel cost.
Sara (Debt Camel) says
Hi Jim, it’s amazing how often problems happen over the weekend, but all you can do now is wait until Monday then ask them to reconsider this decision because they should have taken into account your increased expenses. If they won’t then put in a formal complaint.
Marta says
Hi Jim!
I am in similar situation, after 1 year on IVA plan my payments have gone up from £80 to £350! I called all my creditors and they are happy for me to stop the IVA and pay them as much as I can afford (accounts are closed and no interest will be added). Of course the money paid to IVA is now not refundable and £0 was paid to my creditors but at least I will pay my debts with no one checking how much I earn and I can decide what to do with any extra money. If I decided to stay on IVA I would have paid more than my debts was.
Good luck!
Marta says
just realised that Jim posted this comment a year ago… Never mind, I hope you solved your problem with IVA
Ciara says
I have been with knightsbridge fir a year now, I’m paying £230 a month, but have missed my last 2 payments, this is because I been in hospital with my son who has a brain tumour, and it’s not getting better anytime soon, I just can’t afford the payments anymore, what can I do, thank you
Sara (Debt Camel) says
I’m sorry to hear about your son. Talk to your IVA firm about your IVA to be treated as completed – after only a year it would normally be very unlikely but because of your son’s illness, it’s worth asking. If they say no, it doesn’t sound as though a 6 month break will be enough, so it may be best to let the IVA fail now and then look at a debt relief order (if you owe less than £20,000 and are renting), bankruptcy or selling the house.
Kenny says
hi. Ive had a stroke last Oct and I have been left partially sighted, lost job,and registered blind. Will my iva fail as I’ve been told I’ll never work again and lost licence to drive. I’ve been unable to make any payments since my stroke and living on benefits, any help or advice will be grateful. I have sent all my blind certificates and medical records of to Kingsgate insolvency. Thankyou
Sara (Debt Camel) says
Hi Kenny, I’m really sorry to hear about your health problems. I hope Kingsgate will be helpful here and propose to your creditors that the IVA is treated as completed. Re benefits, you should be getting PIP, other benefits depend on your circumstances, but are likely to include ESA and Support for Mortgage Interest.
Shane says
I’m 3 years into a 5 year Iva we have got our payments lowered by 15% but I had an operation in July and unable to go back to work my pay is now half i have 3 kids to support and I’m unable to pay my Iva. How can I get some help?
Sara (Debt Camel) says
Hi Shane, you need to talk to your IVA firm about what your options are. As this article says, you may be able to take a break of up to 6 months if your health is likely to recover in that period? If you don’t think you will be able to get back to work, you need to discuss if your IVA could be treated as “completed”, but your creditors may not agree.
Steve says
Hi me and my partner are in a joint iva she has been off work for almost a year now due to illness so we have had payment breaks we have written letters to our iva company for help had no reply my partner has rang them and the response she got was there was nothing they can do. We have offered to pay something but it just not good enough for them now I am getting letters ect asking for payments or there going to fail the iva. We only made 1 years of IVA payments. We owe about £8000. I really don’t want to be made bankrupt over this we have already lost our home we rented and moved to a small place as my partner can’t get any help she has fibromyalgia it’s a invisible illness she had her esa taken off her so every thing I earn keeps a roof over our heads
Sara (Debt Camel) says
Hi Steve, it may be that your best options now are Debt Relief Orders – read up about them here https://debtcamel.co.uk/debt-options/guide-to-debt-relief-orders/ and then call National Debtline or go to your local Citizens Advice to discuss if you meet the criteria.
Damien says
Hi there I am on an iva but have lost my job can I get a payment break or not…
Sara (Debt Camel) says
Hi Damien, I can’t say for sure as it depends on your IVA terms, but almost all IVAs have the “six month break” clause in there so if you haven’t already had a break, then it is very likely. Talk to your IVA firm about your options. If you have had a redundancy payout, things are more complicated.
victoria says
Hi. We are currently in to our fourth year of an IVA. We pay £300 per month. We have had a major set back with our car, the garage said it is not viable to fix it, the repair bill will be more than what the car is worth. We have no savings to replace the car and it is vital for my mobile work, also I have an autistic child who has many hospital appointments and doesn’t cope on public transport. What do we do? I do not know where to go from here. Thanks.
Sara (Debt Camel) says
This can be a very difficult situation. If your car was on its last legs, then a payment break of a few months could be used to get the money to buy a cheap car, but if you need a new car now, there isn’t much alternative to getting one on credit and reducing your monthly IVA payment to cover the extra costs. You need to talk to your IVA firm about the options – this may feel like a scary conversation to have, but they want you to be able to finish the IVA and if you can’t work without a car, then a solution has to be found.
Diane says
I have been in an IVA for 2 years, can no longer afford the payments. My washing machine broke before Xmas, so had to buy a new one, I can’t work as I am a full time carer for my 25 year old disabled daughter, thinking of going bankrupt, I rent my property, and have a motability car, no savings, I am on antidepressants with all this worry, be glad of some advice please
Sara (Debt Camel) says
Hi Diane, it may be best for you to stop paying the IVA and let it fail, then opt for a Debt Relief Order or bankruptcy. I’ve sent you an email about this.
Anthony says
Hi I was in a joint IVA wife my wife and we separated since then I’ve not been able to make payments and have only just got my self a house so I can have my kids but still can’t afford to pay what do I do as she has been paying but there saying there going to fail it as I havent
Sara (Debt Camel) says
Hi Anthony, if you are far enough through your IVA, your IVA firm may be prepared to propose that your IVA is completed. If you aren’t then it sounds as though you may have to let the IVA fail. When theta happens you need to see how large your debts are – unfortunately bankruptcy or a Debt Relief order may be necessary.
tracey says
Had iva which I paid for 2 yrs got into difficulty paying this made me go deeper into debt council tax water rates stop paying this now for year and have not heard anything from creditors about this. Does this mean they cancel the debts or will I hear from them when five years should be up on my iva?
I’m struggling to pay council and water I’m thinking going bankrupt which my iva company advise me to do which they should of done from the beginning I feel they gave me wrong advise. I’m renting and have no assests.
Could you please tell me if you defaulted on iva can you take another one out when circumstances change for better?
Sara (Debt Camel) says
Hi Tracey, I am assuming that your IVA has actually failed. No your debts won’t have been cancelled – the creditors will probably get in touch at some point.
If your IVA company says you should go bankrupt, this is probably your best option. Yes you can have a second IVA, but it doesn’t sound as though your circumstances have improved! The bankruptcy fees may sound high but really it’s going to better to save these up and go for the quicker and cheaper option of bankruptcy rather than another 5 years IVA commitment.
Depending on how large your debts are, a Debt Relief Order may also be possible? See https://debtcamel.co.uk/debt-options/guide-to-debt-relief-orders/. I suggest you phone StepChange http://www.stepchange.org/Howwecanhelpyou/DRODebtrelieforder.aspx and ask for their advice on this.
Lewis says
My wife and I are doing a joint claim package or something we have debt and did iva together as a couple. We’re married and have a baby and not planning on breaking up the only issue we have is i just lot my job and am currently unemployed.. I’m looking for work but not been successful hey however the wife is still working and earning £1400 month
Sara (Debt Camel) says
Hi Lewis, you need to talk to your IVA firms about your options. You may be able to take a 6 month payment break whilst you find a new job?
Kate says
Hi
My husband and I have had an IVA in place for 42 months and we have 17 more payments of £600 p.m to pay. It is up to date. My daughter was diagnosed with cancer two months ago. My Mother suffers from dementia and I am her main carer. The condition has been worsening and so there are very challenging demands on me. I work over forty hours per week and I have recently been diagnosed with an anxiety disorder. I need to be at home and simply can’t work the way I’m working. I have offered £2,500 as a settlement plus PPI which I have secured on past loans worth £5,500. Do you think they will allow completion of the IVA in these extenuating circumstances? Stressed and sad :-(
Sara (Debt Camel) says
I am so sorry to hear this, the last thing you need is money worries. I really hope they will consider this.
kevin says
Hi.
I am 3 years into my IVA paying £343 a month. I was thinking of taking 25% of my Pension lump sum to pay off my Iva which is about £8000. Do you think my creditors would accept this.
Sara (Debt Camel) says
Are you having any problems affording the IVA payments?
Do you have a house with equity?
Gordon says
Hi
I have one year left of my IVA due to having too much equity in my property. I pay 420 per month and have 2 months of payment breaks to pay back as well. I have just become unemployed. There is a possibility that i may be able to get some money to pay the IVA off early. How much should i offer? Could i get them to complete without paying any more?
Sara (Debt Camel) says
I am assuming you haven’t received any redundancy money? The usual position in this situation is that your IP will suggest a payment break whilst you try to find another job and if this isn’t possible your IP would propose that your IVA is treated as completed. If your new job paid less it’s also likely that your IVA would be ended. I understand you may want to sort the IVA out now, but I would be reluctant for you to borrow/ be given much money to do this as you are unemployed with a mortgage to pay and this should be your top priority.
Andrea says
Hi, I’m currently in my 3rd year of my IVA. I’ve just finished paying for my car so now have to pay this extra money a month towards it. My hour’s at work have been cut by half and I can no longer afford to pay my IVA. I’m worried they will make me sell my car to put the money towards missing payment. I need my car for work I haven’t yet missed a payment but would appreciate a little advice before I phone them
Sara (Debt Camel) says
They can’t make you sell your car – indeed they wouldn’t want to as this would mean that you didn’t have any income.
I suggest that you should talk to the IVA firm and ask for a payment break whilst you try to find more work – this is simple for 6 months. These payment break months are added on to the end of your IVA.
You should check if your reduced income means you are entitled to any benefits, use https://benefits-calculator.turn2us.org.uk/AboutYou to find out. This is so you can survive on half pay, not pay the IVA!
If at the end of 6 months you haven’t increased your income enough to afford the IVA, one option would be to sell the car, keep £1000 to buy a cheap second hand car, and offer the remaining money as a full & final settlement to end the IVA. But you need the IVA firm to agree in writing to all this before you actually sell the car.
Shauna says
Hi, iv recently had to reduce my hrs in work due to childcare problems. On top of that im paying 112 a month for overpayment of tax credits to a debt collector and know i cant affotd nowhere near 116 that i am paying. Iv just caught up with my rent payments as that was the only bill that doesnt go out DD and im left with much after shopping nappies etc. They have asked for lots of info from me but im wondering what my options are. Thanks
Sara (Debt Camel) says
It sounds as though you should never have had an IVA in the first place :(
How long into your IVA are you? What was the size of your debts going into the IVA?
Ray says
Hi,
I had an IVA which was terminated over 6 years ago (less than a year in) due to job loss. I was lucky enough to have gotten a new job almost right away, but it paid only minimum wage which led to the termination of my IVA. I received no information as to what was going to happen next.
Just over 6 years later (last week) I received a letter from the student loan company (one of the people I owed money to) indicating that they had notified HMRC to contact my current employer to start taking repayments from my monthly salary (in which they had added almost £1000 of intrest).
In the six years since; I have gotten married, have 2 children, baby no 3 on the way and my wife doesn’t work because it doesn’t pay us due to child care costs.
My salary pays for everything in our household with no savings at all.
Any advice at all would be welcome.
Many thanks in advance.
Sara (Debt Camel) says
Hi Ray, most debts in your IVA by now will probably be statute barred (see https://debtcamel.co.uk/statute-barred-debt/) but student loan debt is complicated as it may be possible to deduct it from your salary even if it is statute barred… I suggest you phone National Debtline 0808 808 4000 as you need to discuss this in detail with a debt adviser.
Simon says
Hi me and my wife are 4 years and 3 months into our iva they we tried to remortgage as agreed but to no avail. I’ve recently had my small bowel took out and just been diagnosed with chronic pancreatitis so I’m unable to work for the foreseeable future. We asked if they will write off the remainder of our term do you think they will agree or is there a possibility they will fail the iva
Sara (Debt Camel) says
I would hope your creditors will be sympathetic and agree to end your IVA on the basis of the payments that you have already made. Have you given your IVA firm evidence (eg hospital letters about your operation, current hospital appointments etc) about your health problems?
Dan says
Hi I’m just over 1 year into my IVA £214 a month. There is a strong possibility me and my partner will split up therefore I would struggle to pay everything on my own.
I owe just over 10k on the IVA, do you think my creditors would accept 8k as a settlement payment?
I have no equity in my house so bankruptcy would be the other option.
Many thanks
Dan
Sara (Debt Camel) says
They may well accept 8k but it will depend on your situation at the time. You will need to go through a new income & expenditure to show the IVA firm that you can’t afford to continue.
I assume a family member would be giving / lending you the 8k. That’s a lot of money. It might well be better for you to look at bankruptcy. If you have a house with no equity it may be possible to keep this after bankruptcy. You need some good advice on this and I suggest this should be from an independent debt advisor, not just from your IVA firm (though obviously you should ask your IVA firm as well!) such as National Debtline or Citizens Advice.
Dan says
Thank you Sara much appreciated
Suzette says
Hi
I have a IVA and have been paying +-£430 since Sep 2013. My last payment was made Feb 2016 (paid to date around £13000) and I fell ill and am not likely to recover and lost my job due to me being ill. My IP has given me a 6 month break but now needs to discuss what steps next to take. I won’t be able to get a job anytime soon due to my ill health and not sure if I will ever be able to work again. My IP suggested going to the creditors to make a full and final settlement so I hope that they will. I am terrified that I will be made bankrupt. All this dept was due to my divorce and was all my ex’s rather than mine and as I co-signed for for a joint loan and the dept was around £27000 while we were married this debt fell on me too. This stress is too much for me to handle and really hope the IP is able to sort it amicably out with my creditors. Thanks for a great post.
David says
I’m in a iva for 2 years . Had a serious motorbike accident (not my fault ) so now I’m not working can’t afford my iva what’s my next step
Sara (Debt Camel) says
You need to talk to your IVA firm about your options.
If you expect to be back at work after a few months, a payment break is usually best – the missed months will then be added onto the end of your IVA.
If you expect to get an insurance payout for the accident, then the bit that relates to lost earnings has to go to your IVA but the “pain and suffering” element doesn’t. You may be able to use this to make an offer to settle your IVA early.
Tony says
I have just payed my last payment and now my IVA want to extend it another 9 months which I will probably paid most of the actually money off by then. They want to extend it due to me earning more money last year they say 6,000 which might of been extra days.
This was due to not been able to buy enough food pay bills etc…My IVA just think I have money to burn which i don’t my boiler and house is starting to fall apart.
I just want this nightmare to end I have asked them to call it a day now as I have my son who lives with me now as well money is even tighter my question really is if the creditors refuse to scrap the 9 month extension can I offer them less each a month for the extra they want? as do it myself finish the IVA?
Sara (Debt Camel) says
I think you need to go bank to your IVA firm and ask them to review not just your income over the past year (and before?) but also your expenditure. You should also have been allowed to keep some of the extra money that you were earning in overtime, ask them to account for this/ That will hopefully result in them deciding you owe a lot less than £6000.
If they then still want you to pay an amount over the next 9 months, if you can show this isn’t affordable, you could ask them to propose to your creditors that your IVA is treated as completed on the basis of the amount you have paid in so far.
Tony says
Hi and thanks for the quick response they are trying to get it squashed for me but they are saying I do not think they will I have lost over 2 stone I don’t eat am in arrears with my council tax they just don’t seem to listen.
But thanks I will see what they say about my letter when it comes back to see if they are going to squash it hopefully they will I was excited in a way to try get my life back on track I was guarantor on these debts to start of with.
Thanks again Tony
Sara (Debt Camel) says
To get this “squashed” they need to put forward a variation proposal to your creditors. You should be shown this before it goes forward. If it doesn’t mention things such as your health (could you get a letter from your doctor saying how the stress is affecting you?) and tyour council tax arrears (have you sent the IVA firm evidence of this?) then you should ask to have these added. Also you should be sent an explanation of how the £6000 is calculated… if it isn’t fair because it doesn’t account for extra costs it’s important to get this corrrected. Your creditors are more likely to agree to a variation if they think you have struggled through the last year, rather than had lots of spare cash!
Tony says
Hi yes I have had a letter sent out of the council saying that i have agreed to pay some extra to pay my arrears off, also I have been in hospital they do not know the outcome it could be anything like stress or something else work has seen how stress out I am they have asked me to phone there councilor up about it.
I will have to wait for this letter they said they will send me a copy if im happy to sign it and they will see the creditors to see if they will squash it.
Thanks I did get a telling off as i got credit for a washing machine and fridge as I have 3 kids in total who are getting bigger the reason I worked extra days was to help to pay for them as well like xmas birthdays etc.
Just needed to speak to someone as it stressing me so much I feel like there is no end I have not had a single penny to splash for years and I think I have learnt a lesson. Tony
Miss joy rooke says
Im 44 years old and have 21 months left on my iva i have never missed a payment. After notifying the iva that im changing jobs and my start date, unfortunately on the morning of my new job i suffered a heart attack and i have being diagnosed with a very rare heart condition called spontaneous conorary artey dissection meaning my arteries tear causing me to suffer future heart attacks.
im on alot medication im very limited to what i can do but it will fatal working in the future is not possible at all there is no cure for my heart condition it only happens to young fit healthy people not self inflicted,i have no income
Sara (Debt Camel) says
Hi Joy, what a horrible thing to have happened. You need to tell your IVA firm right away and send some stuff from your doctor or even better your hospital consultant that explains what you heart condition is, how it is not going to improve and how you are going to be unable to work. In this situation your IVA firm should propose to your creditors that your IVA is treated as completed on the basis of the money you have already paid in – I would hope your creditors will agree to this.
Diane Plumley says
Hi Sara,
We’d very much welcome your thoughts on our current circumstances.
We’ve just started year 6 of our joint IVA, the IVA was originally set for 5 years but we’ve gone into a 6th year because of a healthy amount of equity in our house and not being able to release any of that equity – we’re fine with that, we understood that would be the case. June 2018 is set to be the last payment to our joint IVA. However, my partner as been unwell and unable to work for the last month and unsure when he will return to work, expecting him to be off for at least another month. He is in full time employment but his employer goes straight to SSP for periods of sickness. Currently we pay £389 per month to our IVA but my partner’s income will drop by at least £1k each month.
Over the last 5 years of our IVA we’ve taken 3 x 1 month payment breaks and I think this was the maximum allowable in our original agreement.
We’d welcome your thoughts on where you think we can go with our IVA, what our options might be now to try to ensure our IVA doesn’t fail at this relatively late stage
Sara (Debt Camel) says
You need to inform your IVA company that you won’t be able to make any payments until you partner is able to return to work. Your IVA company will have to ask your creditors to agree to a payment break. this will probably involve calling a variation meeting. If you are unsure if he will ever be able to return to work, you could ask for a variation to agree that your IVA is completed not on the basis of what you have paid so far, but it doesn’t sound as though that will be needed. It would be very unusual for an IVA to fail at this point, provided you keep your IVA firm informed about what is happening.
Diane Plumley says
Many thanks for your quick reply and comments, helps to set my mind at ease a little more and will definitely contact our IVA supervisor
Vanda says
Hi Sara
I have just paid my 44th payment of my 60 month (5 year) IVA. I am due to start a full time nursing degree in September which means I will be able to make 2 more payments before my IVA becomes unaffordable (46 out of 60). I only pay £100 per month so this is not likely to be reduced. I have submitted my income and expenditure forms and my student finance letter which confirms what my maintenance payments will be. My partner is on a low income so can’t help out with the payments as we are just managing to pay the bills as is. Offering a settlement figure is impossible. My question is, what is the likelihood of the creditors agreeing to close the IVA early on the basis of payments made rather than having it fail at this time? I can’t just take a break as my degree lasts for 3 years. I’ve never taken any payment breaks either throughout the duration of the IVA so would that be taken into account? I am renting.
Sara (Debt Camel) says
Well it is a huge shame you didn’t go bankrupt instead of starting this IVA – bankruptcy would all have been over by now.
You have done the right thing asking your IVA firm if your IVA can be closed early. They don’t have to agree to this though.
how large are your debts?
Vanda says
I was advised bankruptcy was a worse option and that the IVA would be better for me since we do want to buy a house in the future. I was also told that bankruptcy would also affect my credit file for at least 6 years and be looked upon unfavourably even after that when it came to applying for a mortgage. My total debt was just over £12000 when I started the IVA.
Sara (Debt Camel) says
Bankruptcy affects your credit file for 6 years in exactly the same way an IVA does. Some lenders don’t mind if you went bankrupt or had an IVA more than 6 years ago. Some will decline you for a mortgage if you have gone bankrupt, but some of those will if you have had an IVA :(
But, you are where you are.
If your IVA cannot be ended you are likely to have to choose between the unpleasant following options:
– try to struggle through and make the payments. I don’t know how impossible you may feel that is.
– postpone starting your degree for a year and complete your IVA;
– let your IVA fail. At that point you may well be eligible for a DRO as you will have less income than when you started the IVA. See https://debtcamel.co.uk/end-iva-change-to-dro/. That will wreck your credit record for another 6 years, but realistically it doesn’t sound as though you could be close to getting a mortgage for that time anyway.
Vanda says
What happens if an IVA fails? How will that affect my credit? Will I just go back to being in massive debt and have to start all over again? What about the money I’ve already paid? I’ve spent nearly 4 years making payments every month in the hope that keeping to my IVA perfectly would be viewed favourably in future. The IVA is due to be removed from my credit file completely during my degree so I’m not prepared to have my credit file ruined for another 6 years. I am 35 now, I really don’t want to postpone starting my degree for another year when I’m already much older than the average student on my course. It seems my only option is to try and continue with the payments if the creditors don’t agree to ending the agreement early.
Sara (Debt Camel) says
If an IVA fails, you are left with your debts plus the IVA fees (probably a couple of thousand) less what you have paid in so far, which would be about £4400? The failed IVA will drop off your credit record 6 years from the start of the IVA.
“I’ve spent nearly 4 years making payments every month in the hope that keeping to my IVA perfectly would be viewed favourably in future.” All trace of your IVA will be gone 6 years from the start (assuming it has finished by then).
As I said, the options are not nice. I don’t know how difficult you will find it making the IVA payments. I don’t know if your degree will leave you any time for any part time work, possibly in the holidays?
Lynn holland says
I had debts of £30000. I was paying £250 per month towards my IVA and agreed to no variance for 24 months. However I lost one of my jobs 6 months into the first year but used all of my savings to keep the agreement. I’m now at the beginning of the 3rd year and have put in my outgoings etc. it has been agreed that I need to pay less now but they are saying they will extend the time of the agreement which will already be 72 months as I cannot release any equity. How long would I end up paying extra for? It feels unfair that they keep saying they will extend the months when I was originally told it would be no longer than 72 months at the most. I can only pay what my outgoings show surely?
Sara (Debt Camel) says
How much equity do you have? How much are they saying you should pay, and can you afford this? How long are they saying they will extend the IVA for?
Lynn says
I have about £50000 of equity but no one will allow me to release any of it. I have 9 yrs left to pay on my mortgage. I am being told I can afford to pay £132 pm and that they will see if my creditors will agree to the reduction but this will leave me with nothing spare and all my wage going out I will feel pressured as my savings have gone now. They are wanting to add another 12 months to the IVA meaning I will be paying for 84 month . It feels like I will be paying forever. I don’t think any of this was explained properly when I was advised
Sara (Debt Camel) says
Do you think you can afford £132 a month? You could talk to National Debtline 0808 808 4000 and ask them to help draw up a budget to see if this is reasonable.Your IVA firm wouldn’t have to agree to this, but doing this could leave you in a better position to argue for what is actually realistic.
Lynn holland says
I have about £50000 of equity but am unable to release any of it as no one would agree to this. I have another 9 years to pay on my mortgage. They are saying they will see if my creditors will agree to reduce it to £132 but this will leave me with nothing spare and leaves me feeling very pressured. They are saying they will extend for another year. Feels like I will never be out of this situation
chris says
hi iam in an iva but i have taken out a smaall payday loan will i fail my iva
Sara (Debt Camel) says
Hi Chris, as with a lot of IVA questions i have to start by saying that it depends on the terms of your particular IVA. But a typical IVA will have a clause such as this:
“You must not obtain any further credit greater than £500 without the prior written approval of your Supervisor … If you
do obtain credit of more than £500 without the consent of your Supervisor, this will constitute a breach of your arrangement.”
If yours says something like that, then if your loan was under £500 you won’t have broken the agreement.
But talking a payday loan in this sort of situation is usually very bad news as it’s very hard to afford the repayments on an IVA. Why did you need this? Was it a one-off problem or are you struggling with your IVA?
Steve says
Hi can you give me some advice please in a current iva joint and have applied for payment holiday front the Halifax granted so no payment for December 2017 I have already taken a iva payment break and arranged to pay extra on iva payment to make up the payment break now my wife’s car broke down and requires a new gearbox and clutch with around 600 pound’s worth of repairs also we will be coming up to 36 months in iva come March 2018 and my wife as a small pension to cash in when my wife turns 55 we pay 202 amonth taking into account the equity release extra 12 months payments to cover outstanding of 7272 we want to offer a full and final of around 8000 would this be acceptable thanks steve
Sara (Debt Camel) says
I don’t think you should need to offer more than the outstanding amount, including the extra year on your IVA.
BUT you do realise that the money your wife takes out will be taxed as income in that year?
AND you mustn’t take this money out before the IVA firm has confirmed that the creditors will accept this a settlement, otherwise the IVA will take it all and you will still have to carry on with the IVA.
Andrew says
Hello Sara,
We have had a joint IVA for just over 2 years now. Paying back £400 pm. This monthly figure has already been reduced 15% more or less from the start.
The deal was that we pay back £25,000 over the 5 years. approx £10,000 has been paid.
Our son has the higher disability rate and even though this is his money this is how we got the IVA in the first place. They said they would have to include it in our income or we would not get the IVA.
Our son is now of age and able to live independently.
All benefits and tax credits we were receiving have stopped including carers allowance. This amounted to over £1400 pm !
Since the benefits have stopped my partner has gone and got a job, which earns £450 pm and we do give our son everything he needs.
Our son now wants his independence and wants to move out. So of course, the £330 DLA is his money and hence leaves us short. He also works part-time though does not contribute to the household income.
My question is … am I being too optimistic to ask the IVA company if they can finalize and complete the IVA early?
Kindest Regards,
Andrew.
Vicki P says
I am currently into the 2nd year of my IVA, my question is, every now and then I get a bonus from work which is always normally paid to my IVA company on top of my normal monthly payment which is paid by standing order. However in Feb I slipped over on ice and knocked my front tooth out my dentist is private as I can’t get a NHS dentist for love or money and put a temporary filling in as I couldn’t afford the £300 for a crown, in May I received a £280 bonus which I would normally have given a % to the IVA company however as I still had a temp filling which isn’t a permanent fix I had to get my crown done, I informed the IVA company of the situation sent them pay slips proving the amount of extra money I had received and also sent a copy of the dental invoices so they could see exactly how much the work had cost which ended up being £420 as I also needed a couple of fillings. The IVA company are saying I still have to pay what I should have from my bonus and are adding it to my IVA. MY question is can they do this when you have spent money in regards to health and wellbeing? not having this essential dental work done would have eventually caused me pain and distress, they still had their normal money paid. I live on my own and depend heavily on my little bonus’ to get essential things done.
Sara (Debt Camel) says
Yes I am afraid they can say this. It sounds as though your IVA payment is proving difficult for you – did you have a review at the end of the first year? Have you had expenses that have gone up that have not been taken into account? You should have an amount allowed each month for dental/medical costs – do you?
Alan Robinson says
Hi I’ve recently seperated from my wife. I’ve paid iva for 3 and a half years. I need to get a place of my own but can’t afford to keep the £518pm im paying now if i get my own place plus when ive worked out what my possible finances are if i get a place I will only have £200 pm spare… what are my options please
Sara (Debt Camel) says
What was your IVA payment at the start of your IVA? Were you renting or buying with your wife?
Sheila says
Hi . I’ve been paying my iva for a year now. My review is due . But I have the higher rate disability payment and I want to use the money to get a mobility car. I can still keep paying my iva . But am I allowed to still get my mobility car.
Sara (Debt Camel) says
Is the higher rate disability payment new, in the last year? If you use it to get a mobility car, will you still be able to make your current repayments? Will your current transport costs in your IVA reduce? Are you working? Buying or renting?
Sharon vine says
Help! Ive been on a iva and managed my payments for 3 years up untill that is I have an intercrainal bleed between my brain and skull, occuptional health and doctor stated i could no longer work due to illness and constant bleeds, i was on esa i attended there medical but was told there would be an extra 1hours wait on top of the appointment time, then family problems accurred, death, then illness with me, i was told because id missed the appointments id no longer qualify for esa, and now able to work because the job centre said so!!!!
Ive got more and more in debt on there 73.00 a week (paid fortnightly) in my overdraft to the limit, ive had payment break for the time i couldnt work 1year n half but now can even afford my house bills let alone iva! So stressed it making me more ill i really dont know what to do …. and getting further into debit borrowing! Help please!!!!!
Sara (Debt Camel) says
I am very sorry to hear about your health problems. Can I ask if you are buying or renting? If buying, do you have mortgage arrears? Much equity? The new debts – do you know rough;y how much these add up to?
Sharon says
Renting housing assocation but sont get much help as my daughter lives with me so shes paying rent, i still have to pay towards council tax!!! £15 each per fortnight but i cant even afford my share of that! Getting deeper n deeper into debt. I get 73.00 per fortnight but out of that i pay my phone ( wish i didnt have but need it for my mother) car insurance £64.99, £15 council tax a fornight, post office insurance £12.00 water £30.00 and other insurance £37.99 my gas and electric is £1,000 debit and my account is £300 overdrawn. So havent nothing to pay iva, or anything left over x
Sara (Debt Camel) says
Right, how large were the debts in your IVA?
Sara (Debt Camel) says
The reason I asked how large the debts in your IVA were, is that it sounds as though you need to look at your other options to continuing with this IVA. They are:
– asking your IVA firm to propose to your creditors that you IVA is treated as completed because of your prolonged health problems. If this is agreed, it ends you IVA and the debts.
– letting the IVA fail now and switching to a DRO. This is only possible if your debts are under 20,000. See https://debtcamel.co.uk/end-iva-change-to-dro/.
– letting your IVA fail and saving up the fees to go bankrupt.
I think you should talk to a debt adviser urgently. Go to your local Citizens Advice or – if you would prefer the phone – call national Debtline on 0808 808 4000.
Sharon says
Thanku so much for your advice I will do that, working 16years to then not able to work is now such a struggle, with no diagnosis ( name ) for what i have means i cant even touch my pension, just seem to be getting deeper in a hole through not fault of my own, so thanku again for your advice x
Jonathan Hawley says
Hello Sara
I should have finished my IVA by now and was in a debt management plan for 1 or 2 years with the same company before that as well (should have finished my IVA in October)
The IVA company was taken over by another company and eventually I got a letter and maybe a email informing me of this and to be honest I found them to be totally unprofessional,every time I speak to someone I get a different answer to the same question.
I have had emails telling me they have tried to get in touch with me when they clearly have not,these last few weeks I have sent at least 4 emails to the company asking a certain person to email me with some information she promised she was sorting out and investigating in November I have heard nothing back !!! (I have been unable to ring due to a operation I have had)
Basically I was told when I did speak to someone first off before I demanded to speak to a relations manager that unless I did not pay my arrears off there and then then my IVA would fail even though it should be done with by now.
And just one more thing I have paid £30,174.67 in fees and successful PPI complaints to this company, the original debt was £19,565.03,the company have paid ONLY £11,564.09 to the creditors and £18,610.58 has gone into the pockets of this company and the solicitors that were used for my PPI complaints !!!!!!! surely that’s wrong just over a third has gone to the creditors.
Sara (Debt Camel) says
Would you like to name this firm?
It’s hard to know what to say as it isn’t clear what the underlying cause of them saying you have arrears is. Obviously their communication has been poor, but it is the underlying dispute that really matters.
Dee says
I need advise please. I entered an IVA in Sept 2017 and have had 6 months payment breaks. I had s debt of £2500 which i owed to my daughters overdraft allowance which was not put into the iva. I have not paid anything back to her until now as it needs to be paid back within 12 months as it is a student account and she has now graduated. I pay my iva £153 a month but i need to pay my daughter back £200 a month. I have told my iva this but they have not responded they just keep sending defaults and now a threat of termination.
I am estranged from my husband whom i own a house with but was bought with his money and this is stated in the proposal and that i have no interest. What can and will happen if my iva is terminated, or can they put a 12 month hold while i pay my daughter back.
Sara (Debt Camel) says
Did your IVA firm know about this debt to your daughter at the start of the IVA? are you struggling to pay the £153 even before the idea of paying your daughter? Not 2 years in an already having had a 6 month payments break is not a good position.
Dee says
They new about a family debt that could not be put into my iva. I also pay £170 a month into my iva instead of the £153 to catch up on missed Payments. I owe £25000 to my creditors and the biggest debt to one of them is £3600.
Jill says
I am in my 5th year and still nothing has been paid to the people I owed the money to. I pay £120 per month to creditfix. I rang stepchange for advice and they advised me to continue or else it’s just lost monry. I have created the debt and prepared to pay it back to the lenders but how can creditfix not have paid them a penny in all these years!!?? By paying the companies directly I still could have saved money by paying it off early. I think an iva is abit of a scam really.
Sara (Debt Camel) says
Where you are now, the best thing is to complete your IVA. Perhaps a few years ago you had better options, but you are nearly at the end now so just finish it as StepChange say.
andrea says
Hello Everyone,
Before I left the country I set up an IVA with creditfix and have been paying it from abroad for the past 2 years. I can no longer afford the payments, not planning to move back either. Can I claim bankrupcy from abroad? What would happen if I just stopped paying?
Sara (Debt Camel) says
It looks as though you are in an EU country, correct?
Do you have any intention of returning to Britain?
andrea says
Yes correct- in the EU, with no intention of goinf back to the UK in the near future
Sara (Debt Camel) says
ok, so at the moment you cannot go bankrupt in England, see https://debtcamel.co.uk/bankrupt-england-from-abroad/. It is possible that may change after Brexit at the end of January. I don’t know…
But you couldn’t go bankrupt anyway until your IVA had failed.
If you don’t intend to come back to the UK, you could simply stop paying. Unless any of your debts are very large, or are actually from your current country, it may be they will not catch up with you. there isn’t a lot of cross border debt collection at the moment and it seems unlikely that will increase post brexit although it’s possible.
No certainties I am afraid. But You shouldn’t make your own financial situation worse by trying to pay unaffordable IVA payments. Have you asked for them to be reduced?
andrea says
Thanks Sara, that was very clear. I have attempted to speak to them on several occasions but they have ignored all my requests to reduce my payment (I think its because its probably already at the lowest it can go). Do you think that if I were to return to the Uk in the future I would encounter serious problems?
Sara (Debt Camel) says
That depends how long it is after your IVA fails. After 6 years the debts will become statute barred (unless you have any unusual debts in there such as secured loans).
But in the end you have to ask yourself not what might happen at some point in the future, but what are my options now? If you can’t pay the IVA, Creditfix won’t reduce the payments and you can’t go bankrupt, then it’s not clear you have any choice but to simply stop paying and then deal (a) with any debts that contact you where you live now and (b) consider your situation if in 4 or 8 or 20 years you might decide to come back to Britain.
You could talk to National Debtline about your options. You can phone them from outside the UK on 0044 121 410 6200. Or use their very good webchat from their website.
Sandra says
Hi, it happened the same to me just now, from £80 to £360 , which I’m not happy with that since I would be paying 18k when I got a contract of 12k which 3650 it’s just for nominate. And from 80 would be 5000 at the end of 60 months, so means I would be paying 13000 on top of it, what’s the point of having one?
My question is, did the creditors accepted your pay like the IVa was doing or you have to give more?
Sara (Debt Camel) says
Hi Sandra,
you replied to someone who said their IVA payments had jumped a lot. But their comment was back in 2016 so they won’t still be reading this page.
How long has your IVA been going?
Has your income gone up a lot?
Sandra says
I’ve been a year on it. Got a text saying increased to £91 monthly than a letter saying weekly, because my income increased £70
Sara (Debt Camel) says
Have your expenses also gone up?
claire says
my husbands in iva we pay evrey month due to corona virus kids of school and a friend will be looking after them for a charge as dosnt no our situation we will not have receipts so will our payment be reduced?
Sara (Debt Camel) says
so will our payment be reduced?
your IVA payment?
You need to talk to your IVA firm about this. I hope they will be sympathetic to all reasons why people may have problems – they can see you are both working and your children are off school – would they prefer you to stop work or pay someone for childcare?
Koge says
Hello,
I am hoping you can help me with a couple of questions;
I have a Dual-Diagnosis condition and have not long become unemployed because of this.
Because of my conditions my income is now made up entirely of Benefits.
I receive the following benefits;
Universal Credit
Universal Credit Limited Capacity for Work and Work Related Activity Premium (because of my conditions ) – this benefit starts in about a month or so
I am also in the process of applying for the following benefits (again because of my conditions)
Personal Independence Payment
Employment Support Allowance
Please can you tell me how my IVA will be affected by my current (future) benefits?
Would I need to include them in any updated assessment; as they (with the exception of the ‘Standard’ Universal Credit allowance) have been awarded (or would be if I were successful in being awarded the last two benefit applications) solely on the basis of my health conditions?
Thank you in advance
Sara (Debt Camel) says
Can you say how long ago your IVA started? How much are you paying each month? Are you buying or renting?
Koge says
Hello Sara,
Thank you for getting back to me.
In answer to your questions;
My IVA started in October 2018
My payments would be £147 (as I am in a payment break down until June. I have been told to get in contact with the IVA company then if I can not meet the payments to see how much I can pay)
I rent a property from the Council
Many thanks
Sara (Debt Camel) says
ok, so that has more than 3 years to run :(
Sorry some more questions. Do you have a car worth more than £1000 or which is on car finance? Who is your IVA with?
Koge says
Hi Sara,
I don’t mind about the questions;
Yes – more than three years.
No car
My IVA is with Aperture
Many thanks
Sara (Debt Camel) says
In that case you were probably badly advised to take an IVA in the first place, bankruptcy or a DRO would have been more suitable for you.
But what will happen now…
First it isn’t definite that you will get Personal Independence Payment. If your application is rejected, you should immediately ask for it to be looked at again – this is called Mandatory Reconsideration. This can just be a very short email, you don’t need a benefits adviser to help you with that. If it is still rejected, you can appeal and at that point I suggest you do try to get help to put in the appeal.
I am unsure why you are applying for ESA – so far as I know you cannot claim that and UC and you cannot switch back to ESA once you are on UC.
So your future income is at the moment uncertain.
My guess is if you don’t get awarded PIP, you probably can’t afford to pay anything to your IVA. In that case you need to ask Aperture to propose to your creditors that because of your health problems your IVA is treated as completed. As you are less than 2 years in, this may not be approved. In that case best option may well be to fail your IVA and apply for bankruptcy (or a debt relief order if your debts are less than £20,000 – are they?)
If you are awarded PIP, they Aperture may be OK about not taking all of it into account. But if you want your IVA to continue, you will still have to make some payments to it… Otherwise you can let the IVA fail and go for bankruptcy/DRO/.
In a DRO you don’t have to make any payments. In bankruptcy, if your only income is from benefits you do not have to make any payments.
Koge says
Hello Sara,
(Multi part response part 1)
Thank you very much for the detailed reply.
I had started the IVA with Swift before it was transferred to Aperture.
I may well have been incorrectly advised as I didn’t get independent advice first.
However, I do believe my conditions most probably played a part in that.
I have recently (in the past couple of months) been diagnosed with a Bipolar Type illness and a Personality Disorder (which I have had in all likelihood from my childhood / teenage years).
Some of the symptoms of both of these specific types of illnesses are associated with impaired judgment (spending and decision making) and a extremely high level of ‘impulsivity’ (again, spending and decision making)
For me, this explains how I got into debt (cleared everything and got back into it 🙁 almost ten years ago) and that various decisions (i.e. applying for an IVA) can be actioned with little or no thought.
Koge says
Part 2 – end
I will most definitely apply for a Mandatory Reconsideration if I am not successful with my PIP as application.
Thank you for letting me know about ESA, I had read that you could claim it but have to go through your ‘Journal’ in the UC account to Apply (which I did over a week ago)
Though, to be honest some of the Governmental Information around ESA isn’t absolutely clear (at least to me) so I will wait and see what their reply is.
Yes, my debts are under £20,000.
Thank you for letting me know about if what can happen if I do or don’t (immediately) get PIP.
Based on that information; I would therefore let the IVA fail.
The enhanced payments are for me to help manage with my conditions as that’s why they were / would be awarded.
I have already been misdiagnosed once and had to pay just under £700 for a private opinion.
Also; due to the symptoms associated with my conditions it is looking more and more likely that I will have to pay for supplementary support as certain services aren’t offered in my CMHT due to funding.
The DRO and Bankruptcy look like the only other two remaining options.
Thank you again
Sara (Debt Camel) says
ok so read https://debtcamel.co.uk/end-iva-change-to-dro/ which looks at changing from an IVA to a DRO.
As that says, it is essential you get this decision right and this includes getting confirmation that you will qualify for a DRO. You have made some decisions without good advice in the past, you can’t just assume what I have said is right. I suggest you phone National Debtline to talk to them about this.
If ND agree you would now qualify for a DRO you can talk to them about timing. In theory you could let your IVA fail now, not wait for confirmation about the PIP but ND can talk you through the pros and cons of when to do this.
Good luck.
Jodie says
Hi
I’m 4 years into a Iva with creditfix all Iv had is problem after problem they don’t email u back on phone for hours speaking to them and still no better off my problem is I work 30 hours and pay 120 a month but just can’t afford the monthly payment now there saying they want a expense report again and they will ask me to pay more but with everything happening with covid my hours have been cut and I know I can’t afford it would I be best stopping paying it and see what happens
Sara (Debt Camel) says
Have you told them your hours have been cut? They should let you have a payment break if you cany Afford it.
Jackie says
I have been in an Iva (CREDITFIX) for almost 2 years, and on my last review they decided to increase my payments From £70 to £160 per month, even though I had been furloughed, my original debt was £7144 (£1900) paid to date. I have just found out I am being made redundant, I will receive a redundancy payment, and because I am 60 yrs +, and my chances of getting another full time/ part time job are slim, So I’m trying to work out which direction to go in, I’m at my wits end as what to do, So many things going around in my head, I have read all the advice on letting the Iva fail and considering a debt relief order, I would appreciate any advice as to which direction to go in. Thanks.
Sara (Debt Camel) says
How large will your redundancy payment be?
I assume you are renting, no house with equity?
Tawan says
Hi,
I have been on IVA since July 2017 paying £138 per month. My debt was around £28 000, and I live in rented accomodation.
Last December I split up with my partner whose income was much more than mine and I ended up having financial difficulties meeting basic living expenses.
I contacted my IVA supervisor in January and was given 3 month break. This was reviewed again in May but I was no longer working due to the corona virus. I was on a zero contract. Iam now on universal credit.
During the lockdown I got a problem with a swollen painful leg and have been referred to an Musculoskeletal clinic who cant see me yet because they have a backlog. So I dont know when I will go to work, if I will be able to find work and if I can work until I get a physcian’s assessment.
My IVA break is 9 months finishing end of this month. Please advise what are my options are. I am very anxious and in panic mode.
Sara (Debt Camel) says
What a pity you did not go bankrupt in 2017. By now it would be all over with.
You can ask your IVA firm for a further payment break. But given your health problems, you could aslo ask your IVA firm if your IVA could be “closed on the basis of funds paid to date”.
Pam says
Hi Sara
Would like to thank you for the advice you gave me about joint Iva. My husband is alcoholic and was not co operating with providing proofs etc. You suggested I ask Aperture taken over by Jarvis for a variation due to my circumstances. The creditors accepted payments made and my Iva is awaiting closure. Thank you so much I was at my wits end with stress.
Sara (Debt Camel) says
Excellent – glad you got a good result.
Carrie says
Hi,
I have today been contacted by Newlyn bailiffs for unpaid Council Tax. I can’t afford to pay it as only get universal credit.
I also have an IVA paying £140 a month which I have been paying since January 2019, the IVA company have said they can not help and will not lower my payments.
I phoned a helpline and they checked my IVA, they said it started on January 2020 not 2019. The IVA company told me they needed to keep the first 12 months payments before starting my IVA, so my payment plan will last 6 years, is this right?
After speaking with a few people I think I should have done a DRO. I have nothing, rent my house and could never afford the £140 as I am only on universal credit. The IVA company said I had couldn’t get a DRO as I owed less than £10000
Now i have got bailiffs for Council Tax and don’t know what I can do
Sara (Debt Camel) says
I phoned a helpline
Was this the IVA company? If not, who did you call?
The IVA company told me they needed to keep the first 12 months payments before starting my IVA, so my payment plan will last 6 years, is this right?
That sounds extremely unusual…
The IVA company said I had couldn’t get a DRO as I owed less than £10000
And that is… well wrong would be a polite way of putting it.
Can I check – you are renting, you don’t own a house? Do you have a car that is worth more than £2000?
Did you lose your job after starting the IVA?
Carrie says
1) I also called my IVA company said they can not help or lower my payments. I then called a helpline, they checked my IVA details on some sort of register, they said it started in 2020 not 2019.
2) I rent and I don’t own a car
3) I was on benefits with no job when I started the IVA
Sara (Debt Camel) says
OK. Then you may well qualify for a DRO.
I suggest you talk to National Debtline on 0808 808 4000 about this – if they agree you qualify for a DRO, then you can stop paying the IVA and tell your IVA you want it to fail as it was mis-sold in the first place.
It takes 3 months for an IVA to fail, until then you can’t have a DRO. But during this time National Debtline can get your DRO set up and ready to go… so as soon as the IVA fails the DRO can be applied for.
In the meanwhile, National Debtline can also talk about what to do about council tax bailiffs. (Don’t open the door is the first advice!)
M says
Hi Sarah
I took out an IVA in sept2019. Since than due to Covid I was furlough for 6 months back in 2021 being recently diagnosed with an autoimmune disease and still kept up with the payments. I am married and have a mortgage. Due to the covid vaccines being made mandatory in April 2021 I will be losing my job. I suffer with anxiety and depression and I am scared of having the vaccine. Since starting the IVA I have been paying £150pm and not missed a month and the IVA is under my name.
What are my options?
Sara (Debt Camel) says
will you be able to get another job?
Mini says
I am looking, however you can understand it is quite hard
Sara (Debt Camel) says
ok, well if you get a job at a bit less, you can ask for the IVA payments to be reduced. You can get a payment break when your job ends while you look for another one.
Have you talked to your GP about your anxiety and depression and your worries about the vaccine?
M says
Would i be able to put the mortgage on my husbands name and apply for a DRO?
After hearing about people selling the house im scared of losing my home, which is my daughters future.
I am in the process of trying to get exempt from the vaccine due to my mental health.
Sara (Debt Camel) says
No. Transferring a house into your wife’s name would be seen as giving away an asset. And as a matter of practicality, the mortgage lender would not permit this unless your wife could very easily afford the mortgage with no help from you.
I think you just Have to rake this step by step. I have no idea if you coukd Get a medical exemption form having the vaccine. If you do Lose your job, you may be able to get another one. If you can’t, you need to talk to your IVA firm about your options. If your IVA fails, you can look at other options such as a DMP.
M says
So there is no way out of the IVA. After reading so many cases im scared of losing my house. When the iva was taken out I had mounted debts of about £28k.
My partner could afford the mortgage if it was on his name. I was told by the IP that my husband wouldn’t be affected by my IVA but he has been, he can’t even increase his overdraft if he wanted to or open up a store card account.
The exemption is hard to get and the GPs are not doing them. There is a temporary exemption on the gov.uk website which will end on the 31.03.2022.
You can only be exempt if you had a severe allergic reaction to the 1st vaccine, or have severe allergies to the ingredients.
Sara (Debt Camel) says
So there is no way out of the IVA.
I am not saying that, but there is no simple button you can press at the moment. Take this step by step.
After reading so many cases im scared of losing my house.
that is really very unlikely. VERY. If your IVA fails, you just have to find another way to deal with your debts.
My partner could afford the mortgage if it was on his name.
Normally the mortgage lender will not agree to someone being taken off the mortgage. And anyway you could NOT have a DRO after doing this.
I was told by the IP that my husband wouldn’t be affected by my IVA
That was a lie. You have a financial link – the joint mortgage – so his credit will have been badly affected. And the IVA firm would have known that.
Can you talk to your GP about prescribing something for your anxiety and depression?
M says
So what would you advise as the best course of action
Im just waiting to see the GP to be referred back to mental health services. Saw so many people being affected by the vaccines, from problems with their monthly cycle to having strokes.
Sara (Debt Camel) says
Talk to your GP about your vaccine fears.
Then take this as it comes. If you lose your job, take a break from the IVA and look for another one.
Come back if your IVA firm is talking about failing your IVA.
Nicholas says
Hi Sara ,
I had been put on Iva -in September 2017 from aperture (it is now debt movement ) last July 2021 I lost my job I was employed for 26 years since then I simply are keeping my head above water I have on a numerous of occasions contact debt movement and they say to contact citizens advise ? Or pay token of £50 per month the creditors will only look at my case once I have made 3 payment – I have arrears on my council tax and rent arrears.
Sara (Debt Camel) says
That is very unhelpful from Debt Movement.
how large are your IVA payments? Are you up to date so far?
did you get redundancy money from the job?
do you own a house? a car?