Iva - circumstances have changed

[SueDoeName]

I had an Iva I to which the min was set at 374 but have always been able to pay between 411 and 508 .

Last month my (d)? P asked me to
Leave , giving me not much notice and because I have dogs my options for renting were very limited.

I found a rental from an ex colleague who also happens to be an animal lover but ....
My Iva . I can now only afford around £111 down from the £374 it was originally set at although I've always paid more .

I'm am so incredibly scared they will refuse the new reduced payments. What happens if they do? My house (that ex hubby and daughter live in) is the bargaining chip and I can't allow that to be sold from under them .

Does anyone know what happens in this circumstance? I am so worried and darent even phone them to explain.

I've got a two month break in payment to furnish my new home . Meant to start again jan but there is no way I can give them the set min .

What are my options? Worried sick .

You need to get in touch with the Supervisor as a matter of priority. The likelihood is that the Arrangement will fail because you can't meet your obligations in the long term.

This will give you all the info you need:

www.citizensadvice.org.uk/debt-and-money/debt-solutions/individual-voluntary-arrangements/managing-your-iva/failure-of-an-individual-voluntary-arrangement/

When you and your creditors entered into the IVA they agreed to accept x amount in full and final settlement of your debt, and you agreed to pay that in x payments (plus the Supervisor's fees) over x period of time, usually 3 or 5 years. The resulting fixed term agreement was confirmed by the Court.

Before anyone says "they will let you pay what you can afford", IVAs don't work like that as they are a formal arrangement with set legal rules (unlike a Debt Management Plan which is informal and usually only based on what you can afford, but not finite or legally binding like an IVA). You may be able to renegotiate your payments, but your creditors will have to agree to this. If they don't, the arrangement will fail.

If the Arrangement fails the Supervisor or your creditors can make you bankrupt if they wish, simply because the Arrangement has failed. They are most likely to do this if your IVA allowed you to keep a valuable asset (eg your property).

It's worth checking how far your overpayments have helped reduce the sum due - you might be able to complete the arrangement with your lower payments because of that. Bear in mind the Supervisor's fees eat up a lot of it and they get paid first.

I've kept the supervisor informed every step of the way .

Went through new budget today , they were really very helpful but the new proposal has to go back to creditors. I doubt they'll approve but I have options- could just extend the life of it by a year. There will no doubt be negotiation to do . I've had sleepless nights a plenty.

I hope it works out for you. Glad you have have been keeping on top of it.

I'm seriously terrified. I might just be able to lay a further year. I'm so
Hoping they'll accept something that doesn't involve selling the house.