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If you are struggling with your IVA get advice and help here
By Ten2One
#29296
Hi. I'm two years in to an IVA and not missed a payment. Unfortunately due to numerous car repairs I took out two payday loans and i now can not afford the payments. I contacted my IP and he said i can not add the debt to current IVA and that i am in breach of my IVA and that unless i can prove i have paid them back my IVA will probably fail. Any advice would be much appreciated.
By Melissa S
#29300
Hi there Ten2One and welcome to the forum

Firstly I think the reaction from your IP is very harsh. It is possible to include your pay day loans in your IVA even at this stage. This usually depends on the recently borrowed amount being less than 10% of your original total debt.

You should always talk to your IP regarding any financial issues first before borrowing any money as you are supposed to ask them permission first and you will generally be discouraged.

I would suggest going back to your IP and asking if your new debt can be added to your IVA and your IVA be extended because of it, this way your creditors will receive the same amount as originally agreed.If you still have problems you may need to consider an alternative solution which can be discussed later.

Please let us know how it goes
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By Geraldine
#29311
I am really surprised that your IP has reacted in this way Ten2One. An IP certainly does have the authority to add small debts like this to an on-going IVA. Having said that they do not have to.

Clearly to demand proof that you have repaid these debts is just silly though as if you could do that you would not have taken the payday loans in the first place.

One suggestion I would make is to go back to your IP and ask them if they would agree to letting you have a payment holiday from your IVA. This would mean that you could suspend your IVA payments for 2-3 months and use the money to pay of the payday loans. The payments you miss would then be added to the end of your IVA. They should be open to this suggestion as it is an easy one for them to implement.
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By Hayden
#29338
Hi there Ten2One

Geraldine's suggestion about the payment holiday is a good one. In fact this is really the road you should have gone down to fund your car repairs in the first place rather than borrowing more. An IP is always able to offer a payment holiday so that your IVA payments can be used to fund a financial emergency. Once the holiday is over you continue paying your IVA as normal and the payments you missed are simply added to the end of the agreement so your creditors still get the same amount. I am sure your IP will be able to help you with this retrospectively....
By Ten2One
#29346
Thanks for all your advice

I have spoken to my IP again and suggested the idea of taking a payment holiday and they have agreed. I will need a 3 month break and they have said they will have to get agreement from my creditors for this but it should be possible. Now I will be able to pay the payday loans off. I will NOT be taking any more.....

Thank you so much for all of your help as I would never have thought about the payment holiday option myself and my IP did not suggest it.... Keep up the great work guys :)
By Melissa S
#29352
Hi Ten2one

That's great news that you got your IP to agree to the payment holiday.

I hope you are feeling relieved. Please remember you can always ask the forum for any help in the future and if you find yourself struggling again then contact us and talk to your IP before it gets too much.

Good luck :)