If you are unable to afford the payments required under an Individual Voluntary Arrangement (IVA), it is important to communicate this to your IVA provider, also known as an insolvency practitioner, as soon as possible. An IVA is a legally binding agreement that allows you to reach an agreement with your creditors to pay off your debts over an extended period of time.
If you are having difficulty making your payments, your IVA provider may be able to work with you to find a solution. This could include adjusting the terms of the IVA to make the payments more affordable, or granting a payment break if you are experiencing temporary financial difficulties.
It is important to be open and honest with your IVA provider if you are having difficulty making your payments. Failing to make the required payments or failing to adhere to the terms of the IVA can result in the IVA being terminated. If your IVA is terminated, your creditors may seek to recover the debts you owe through other means, such as applying to court for an order to seize your assets.
If you are unable to afford the payments required under your IVA and are unable to find a solution with your IVA provider, it may be necessary to consider other options, such as bankruptcy or a debt management plan. It is a good idea to speak with a financial professional or an attorney for advice if you are having difficulty affording your IVA payments and want to explore other options. They can review your specific situation and help you determine the best course of action.