Can I take a payment break?
When you enter an IVA, you commit yourself to making regular monthly payments, for a predetermined period of normally 60 payments.
But what happens if your circumstances change during this time and you start experiencing difficulties in maintaining the payments.
Can you take a payment break?
Well, Yes, you can.
Your IVA Supervisor has, at their discretion, the option to provide you with upto 9 months of payment breaks, should the need arise.
Reasons For A Payment Break
The payments breaks are built in to the arrangement as part of the IVA's terms and conditions, and enable the supervisor to provide assistance when an IVA client is faced with a sudden financial shock to their budget.
The most common reasons for requesting a payment break relate to a temporary loss of income such as when when someone is made redundant.
Or perhaps a short term reduction to someone's household income, for instance when someone is forced to take a long time off work due to illness.
Similarly, an unexpected domestic emergency, such as a boiler needing to be replaced or an expensive car repair would also provide good reasons for seeking a payment break.
The supervisor will normally require evidence of the need for a break, to justify using their discretion, such as the provision of receipts for a car repair or a letter from a doctor to support the request.
Getting Back On track
If a payment break is provided, the supervisor will extend the IVA by the same number of months as were taken on the break.
This is to ensure that the creditors are not disadvantaged by a reduction to the number of payments being paid into the IVA.
In essence, the missed payments are simply added to the end of the arrangement.
Communication Is Key
As with all IVA problems, it's extremely imprtant to keep your supervisor informed of any problems you are experiencing, and it's best to do so as soon as you realise you have an issue.
By keeping your supervisor informed about any difficulties you are experiencing, you significantly improve your chances of your IVA reaching a successful outcome.