What happens if I default on the terms of my IVA?

In the event of default, the Supervisor must issue a Notice requesting that you either rectify it or put forward proposals for varying the terms of the arrangement.

He may have to convene a further meeting of creditors so that they can decide what should be done.  This could result in either:

• a variation to the existing terms with the IVA continuing, or
• the IVA being terminated and/or
• a bankruptcy petition being issued.

If, for example, a person loses their job and cannot afford to meet their monthly payments, we will call a meeting of creditors to consider giving that person a payment holiday of up to six months.  This gives them time to find a new job, get back on their feet and resume payments into their IVA.  Those six months are added on to the end of the IVA.

Getting in touch with an insolvency expert for free debt advice is as easy as picking up the phone.  Call the Leeds Debt Advice Helpline on free phone 0800 169 1536