An IVA is the legal binding arrangement where you make monthly payments over five years to clear your outstanding debt burden. Five years is a long span and it is quite natural that you will run into one or two problems along the way. If you miss more than two or three payments without a reasonable explanation then your agreement witnesses a premature death. This clause is associated with the agreement to protect both creditors and IP from fraudulent people who simply refuse to pay into the IVA after the immediate danger is resolved.
When you have a genuine reason to miss a payment, your Insolvency Practitioner can arrange for you to catch up by increasing the future payments. However, when you have missed several payments, your IP is forced to call a variation meeting and change the terms of your agreement. This may be regarding reduced payments in future or an extension to your time limit to cover any missed payments. It is very essential that you speak with your IP as soon as you have a problem in repaying installment, so that they can help. If your circumstances change like a change/loss of job, ill health and so on, you will need to inform your Insolvency Practitioner .
If you have changed your job for an increased salary, this may mean that your payments into your IVA will be increased. In these positive scenario, you will need to fill in a new income and expenditure form. When the job change reduces your income, either due to a lower wage or increased expenditure, then you may need to ask your IP to propose a creditors meeting for lower monthly payment. If ill health or any other reason that makes you unable to pay your full monthly payment then you must inform your IP as soon as possible.
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