What to Do If You Can’t Keep Up with Your IVA Payments
If you find yourself struggling to make your IVA payments, it’s important to contact your insolvency practitioner immediately. By explaining your financial difficulties, you may be eligible for the following options:
- Paying later than usual
- Reduced payments for a limited period or the duration of your IVA
- Zero interest for a limited time
- Quick resolution of your IVA
Typically, you will have up to a month from the date of the breach notice to respond. By promptly addressing the situation and agreeing on a plan to settle any overdue amounts, your insolvency practitioner will not pursue further action against you.
Failure to reach out to your insolvency practitioner could result in the termination of your IVA and the possibility of bankruptcy. If you receive a notice of breach due to late payments, it is crucial to make an emergency payment to rectify the situation.
Dealing with Late Payments
If you realize that you won’t be able to make a payment by the specified date, contact your Insolvency Practitioner (IP) as soon as possible. Discuss the potential for a payment delay and provide a valid explanation for the delay.
If payment is not made or notification is not provided, your IP will issue a notice of breach, along with a request for payment and an explanation for the delay. It is essential to send the payment as quickly as possible. In most IVAs, you have up to three months to respond to the breach notice.
By submitting the required payment within the given timeframe, you can avoid legal action and end the claim against you. Additionally, your IP may adjust your IVA to minimize the monthly payment amount after understanding your financial difficulties.
Consequences of Failing to Make a Monthly IVA Payment
If you are struggling to make your IVA monthly payments or need to catch up on missed payments, contact your IP as soon as possible. Failing to inform your IP about your financial difficulties and consistently missing payments can lead to the failure of your IVA.
If you are facing temporary money problems such as car breakdown or a drop in monthly income, it is crucial to communicate with your IP. They may be able to develop a solution that allows you to defer payments for a certain period.
However, it is important to note that your IVA must comply with the IVA protocol to be eligible for a payment moratorium. If your financial situation changes, review the conditions of your IVA to explore the possibility of reducing payments.
When experiencing difficulties in making IVA payments, provide evidence and documentation of the problem to your IP to increase the chances of receiving assistance. Keep in mind that a payment suspension will extend the duration of your IVA, and approval from your creditors may be required for significant payment reductions.
Consult your IP to discuss potential adjustments to your payments or the necessity of involving a replacement debtor. If your circumstances change, your IVA documentation may allow for modifications to accommodate your financial situation and ensure the success of your IVA.