Can iva payments be reduced

However this is cannot be guaranteed. The first thing to consider is whether you can simply make cuts to your expenses. If you can tighten your belt and maintain your original payments you can continue with your Arrangement as normal.

Where you simply cannot make further cuts to your budget and if you are not a home owner you could also consider stopping your IVA and going bankrupt to deal with your debts. Once you are bankrupt you only have to make ongoing payments if you can afford to do so. If you are struggling with your IVA payments and considering bankruptcy give us a call Our adviser can discuss whether it would be a sensible option for you. Please leave this field empty. Privacy Policy Your information will be held in strictest confidence and used to contact you by our internal team only.

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Struggling to pay - individual voluntary arrangements This advice applies to England Print. If you've already missed a payment Contact your insolvency practitioner straight away - otherwise your IVA may be at risk. When your IVA was set up Maximum length of payment break After 1 January 9 months 1 July - 31 December Up to 9 months - 6 months straight away plus an extra 3 months to take at the same time or later on if you need it Before 1 July 6 months.

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If you believe that you are about to default on your IVA payment you should speak to your IP as soon as possible. Since the introduction of the IVA protocol in February , the supervisor of protocol compliant IVAs has the discretion to provide assistance to clients struggling to maintaining their IVA payments. If this reduction doesn't provide sufficient respite, or if you are in a non-protocol compliant, IVA then your supervisor can seek a variation to the original terms of your IVA.

Seeking a variation to the original agreement will require another creditors' meeting to be called, so creditors can vote on whether they accept or reject the offer of a lower payment.

Since the introduction of the revised IVA Protocol on 1st October , there has been a change in the length of time that can be given as a payment break during an IVA. Protocol compliant IVAs entered into before October 1st provide the supervisor with discretion to implement a single payment break for a period of upto 6 months.

But, in contrast, protocol compliant IVAs entered into after October 1st can now benefit from a break of upto 9 months. The premise for a break remains the same in that with the permission of your supervisor a payment break can be given without the need to seek creditors' approval and, once the break has been sanctioned by the IVA Supervisor, all contributions to the IVA are temporarily stopped for the agreed term of the break. When a payment break is agreed, the original term of the IVA is extended by an equal amount of months to that of the break, to ensure creditors are not disadvantaged and, therefore, still receive their expected dividend from the IVA.

If, after the break, it is still not possible to resume payments, the supervisor can approach creditors and seek a further extension to the payment break. If you simple want to bring your IVA to an end as quickly as possible, then defaulting on your payments will achieve this for you.