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IVA Payment Break
If you have agreed to the terms of an Individual Voluntary Arrangement (IVA), you have agreed to pay your creditors regular amounts at regular periods.
But what happens if your circumstances change?
What happens if you lose your job?
What happens if your partner leaves and you are no longer able to maintain payments?
What happens if something else happens to stop you paying each month?
The term of an Individual Voluntary Arrangement (IVA) is over 5 years, but that is a long time and circumstances do change. Creditors and their referees, Insolvency Practitioners, realise this and will make exceptions when appropriate to help a debtor in an Individual Voluntary Arrangement (IVA) make amended payments if their circumstances change. Most standard Individual Voluntary Arrangement (IVA) proposals allow for two missed payments over the length of the Individual Voluntary Arrangement (IVA).
It is in the interest of all parties for the Individual Voluntary Arrangement (IVA) to continue and normally, if the payment difficulty is only a temporary one, there are mechanisms that can be used to keep the Individual Voluntary Arrangement (IVA) on track. For example if the payment break is only for a short while, then it may be possible to extend the length of the Individual Voluntary Arrangement (IVA) by the number of missed payments as long as all parties agree.
Of course there is also the opposite alternative. If you wish to finish your IVA early then you should consider this as another option to get yourself self free a little sooner than initially anticipated.