i am entered into a iva but no longer cant afford what can happen if we stop paying it,?

Answer 1

You can miss three payments during the lifetime of an IVA, all of which will be added on to the end of the period of repayment. So if you were due to finish in April 2008 and miss three payments you will finish in July 2008 instead. These three payments do not have to be consecutive so you could miss one in January, one in March and then one in December for example.

If you miss a fourth payment then your IVA becomes void, it does not mean that your creditors will automatically make you bankrupt - this will depend on how long you have paid for and whether entering an IVA again for a full 5 years at a lower rate would be more beneficial to your creditors.

However, bankruptcy is not necessarily something you should fear - if you do not own your own house, or any other possessions of substantive value then bankruptcy might be far less painful. It usually takes only 1 year for a first time bankrupt to be discharge and you may find the court takes less money than the IVA on a monthly basis, yes your possessions can be sold off but if you don't have much of value then it's not a major issue. In the long-term bankruptcy will damage your credit rating permanently and prevent you from becoming a company director - but to be fair if you couldn't manage the credit you had previously, why would you want more in the future? And there are ways round the rulings on directorships.

The best advice I can give you is to talk to one of the national debt charities or your local citizens advice bureau to see what your best next step is, do not consult your IVA company or creditors first as they may take action before you are ready to commit to a course of action yourself.

Good luck. Irresponsible lending is taking it's toll on swathes of people accross the UK and I hope things work out right for you.

Answer 2

I jnow that you know what an IVA is but a lot of other people do not. So here is an explanation and the consequences of not fulfilling the obligations as set forth in the IVA.

An IVA is a legal contract between you and your creditors, it is a legally binding arrangement supervised by a Licensed Insolvency Practitioner, the purpose of which is to enable you to reach a compromise with your creditors and avoid the consequences of bankruptcy.

The IVA enables you to cut your debts to an affordable level and clear them over a fixed period. The compromise should offer a larger repayment towards your debt than could otherwise be expected were you to be made bankrupt. You can even take out a fresh mortgage while in an IVA. What’s more, it is a totally private arrangement – nobody needs to know about it apart from you, your advisors and your creditors. An IVA ensures that your home is protected and your job is not at risk.

You make one single manageable monthly payment, based on your budget, for 3-5 years. After that the remaining debt is wiped clean, leaving you completely debt-free. This means that an IVA can write off up to 75% of your debts.

However, under the terms of the agreement you undertake to contribute as much as possible within your budget. So in reality, an IVA presents an opportunity for you to pay whatever as you can in a manageable way – a way you can afford.
Please see Pros and Cons of an IVA.


Who can benefit from an IVA?
An IVA is available to all individuals, Sole Traders and Partners who are experiencing creditor pressure and it is used particularly by those who own their own property and wish to avoid the possibility of losing it in the event they were made bankrupt.


How an IVA Works
1) Proposal submitted to court with a view to obtaining an Interim Order.

2) An Interim Order is issued by court stopping creditors from taking any action against you whilst a meeting of your creditors is called and held to decide whether the proposals are acceptable to them or not.

3) The following information will need to be gathered and presented as part of your IVA file:

* The Nominee’s comments on the debtor’s proposals
* The Proposals
* Notice of the date and location of the meeting of creditors to vote on your proposals
* A Statement of Affairs that lists your assets and liabilities and your income and expenditure
* A background statement that explains the circumstances that culminated in the IVA being required
* A schedule advising creditors of the requisite majority required to approve the IVA
* A complete list of creditors
* A guide to the fees charged by the Supervisor following approval of the IVA
* A form of proxy for voting purposes

Creditors Meeting
The creditors meeting is usually held 2-4 weeks after the above has been circulated to creditors. The purpose of the meeting of creditors is to agree or reject your IVA proposals with or without modifications which can be requested by creditors at the meeting.

Acceptance of the proposals requires 75% in value of those creditors who vote. The 75% relates only to those who actually vote, all will be bound by the terms of the arrangement whether they voted or not.
Upon approval of the IVA, a Supervisor is appointed (usually the Nominee) to ensure the proposals are adhered to and to distribute the dividends to creditors.
Assuming the debtor complies with the terms of the arrangement, upon completion of the IVA he will be fully discharged from all liabilities included within it.

If you fail to comply with the terms of the arrangement, your home and other assets are at risk if they have not been specifically excluded from the proposals. If the IVA fails as a consequence of you not meeting your obligations under it, you will likely be made bankrupt.

Answer 3

If you can no longer pay, then you must withdraw. To stop paying is to make things bad for yourself

Answer 4

What is an iva?

Answer 5

I am not sure but I do know that a double negative equals a positive.

Answer 6

Take a wild guess.

Answer 7

they can and will make you bankrupt and take your assets off you