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What happens if I cannot meet my IVA repayments?

It may be that you miss several repayments and if you do so without a good reason then your Insolvency Practitioner may fail your IVA. If you do have a valid reason for missing payments then a variation meeting may be called to allow some change in the terms of your IVA, such as reduced payments. Whatever the reason you must make sure that you always keep your Insolvency Practitioner involved with what is happening.

At some point during the length of your IVA you may have difficulties with work or illness and in such cases you should contact your Insolvency Practitioner immediately. It may be possible that whilst you are struggling with these issues your Insolvency Practitioner can contact your creditors and ask to suspend the payments. They may in some cases discuss with your creditors the possibility of finalising your IVA and concluding a full and final settlement.

If during the IVA, you realise that you cannot manage the payments as you have underestimated your outgoings, then again, make sure you contact your Insolvency Practitioner straight away. In such cases it may be possible to reduce the payments that you are making, but be aware that some IVAs do not allow this within the first two years. It is therefore vital that you plan carefully before entering into such an agreement.

What happens if I realise I have another creditor?

Should you find that you have an additional creditor that you overlooked you will need to speak to your Insolvency Practitioner for them to arrange a meeting with that creditor to enter into the IVA. This may or may not be possible depending upon the effect on your dividends. Please note that your Insolvency Practitioner can fail the IVA if they feel it will not be successful.

It is important to remember that an IVA is a formal agreement and by agreeing to one you are under obligation to meet your repayments.