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Posted by paulg : February 4th, 2008

IVA Failure

Hi, I have been in an IVA for the past year and haven't missed a payment. I am having my annual review at the moment and feel that I am being pushed into failing my IVA. The problem I have is that I earn around £15,000 per year in overtime, my supervisor is asking for half this amount to be paid in to my IVA as a lump sum or to extend the IVA to 6 years. I do not have the lump sum to pay in. Also I will have to submit my payslips each month and pay in half my overtime payments on top of my monthly payment, this would ammount to the same sort of payments that I was making to my creditors before the IVA. My supervisor will not accept that I earn the overtime to pay extra maintenance for my 3 children even though I have submitted receipts for this. I can see me having this problem at the end of each year of my IVA and feel that I would've been better off struggling to pay my debts rather than enter into the IVA. Can you advise me what will happen if my IVA fails and would I be better off trying to come to an arrangement with my creditors. Thanks, Paul
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I have spoken over and over

I have spoken over and over to my IVA company, they will not accept any increases in my living expensis or outgoings for my children. I would've been happy with the increased payments for years 2 to 5 but the thought of extending for another year is not an option for me. My whole IVA experience has been terrible, Clear Start never informed my creditors or put me on the IVA register so I had creditors chasing me for the 1st 3 or 4 months trying to take payments from me and then debt collectors calling me. The 50% clause was never explained to me so it came as a shock, perhaps I could've planned for it if I had known. I am moving in with my girlfriend this weekend, can anyone advise me if bankruptcy would affect her property with me living there, i.e would they be able to make a charge against it???? Thanks Paul
Posted by: paulg

Hello Paul

In most IVA's if you earn a considerable amount of overtime then you would be asked to pay, in most cases, half of the amount earned. Any company that we would refer you to would most likely explain this upfront although it really does depend who you are with. If your IVA was to fail then it is usually upto your creditors what the next course of action is, this could in turn result in bankruptcy. What I would advise you to do is to express your concerns to your IVA company.
Hope this helps
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