The key information recently provided by the Insolvency Service suggests that help is on hand for those struggling with IVA payments during the current Coronavirus crisis. Even before the crisis, circumstances can change and we need to discuss the implications with our IVA suprrvisor.
But clearly the crisis we now face creates new problems for far more people which Insolvency Practitioners will need to take on board. Essentially, if income level has dropped due to Coronavirus or some essential item of expenditure has occurred due to the virus, then its perfectly possible for the IVA payment level to be reduced by 25% or for a holiday payment to be given for 3 months. Obviously further advice will be porovided once this time period ends.
Under normal circumstances, when changes to an IVA proposal are discussed, they may then have to go to the creditotrs via a "Variation Meeting". New details that affect the existing proposal need to be formally put to the creditots for their approval (or otherwise). But under new guidelines such varuation meetings can be avoided allowing greater flexibility and a simpler process to be set up during these difficult days. These new rules are in addition to standard protocol for IVA's.
The supervisor of your IVA would need to be agreeable to the reduction/payment holiday - and reasonable grounds would need to be provided. And of course a payment holiday doesnlt reduce the number of IVA payments overall. We still need to make up for the missed months. But hopefully this will take place during happier and easier financial times.
New rules also mean that key workers will not be expected to hand over any overtime monies earned during the pandemic. And also for those faced with trying to release equity from their property - there is no need (unless the debtor wants to) - instead the supervisor has discretion to extend the IVA for 12 months. This applies to everyone (not just those sufffering due to the virus - simply because getting realistic house valuations during the crisis is impossible).