Hello,
I'm 3 years into my IVA with Harrington brooks, I pay £100 per month and have 2 years remaining, I'm happy with my monthly payments but feel the ongoing questions and having to provide complete financial details, bank accounts a bit annoying although I understand this is a requirement...
My question is this. Can I come out of this agreement and go direct to my creditors (hsbc and Barclaycard) to pay them the same amount and for the same term but effectively cut out HB ??
You can leave but then you will go back to square one with your creditors.
The creditors may not agree to the same payments and, unfortunately you do have to supply financial details each year.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
If you leave the IVA to fail, your creditors will likely add the interest back on, possibly charges too and increasing the balances on your accounts. They will also likely view it that you have failed to keep to a legally bound agreement, so may not want to work with you directly as a result.
Have you thought about seeing if you could get funds to offer a full and final to conclude your IVA early? This is the monthly amount x the number of months remaining.
T
Started IVA 27th Feb 2012 - Due to complete 27th Jan 2018 !!
Full & Final submitted and accepted 30th March 2015, paid 10th April 2015 - 3 yrs 1 month into IVA
Completion Certificate received- 30th April 2015!!
i was with hb for 4 years until i finish with a full and final they were always curtious with me very helpful throughout my iva stick with it only 2 more years it will soon go then you will be debt free
full final paid over 29/2/16 cc arrived 12/4/16 its all over
I wouldn't recommend it. The IVA is legally binding. If you breach it you will be back to square one again. Creditors do not have to accept reduced payments from you - they can begin recovery proceedings. You may also be bankrupted either by your Supervisor as part of the IVA failure process or by creditors.
At the moment you have a pretty good idea that in 2 years for £2,400 your total debt will be repaid and you will be clear. You credit records can also start to be repaired 6 years from when the IVA started (if it ends in the normal way).
Also, any excluded assets you have in the IVA (property etc) will be at risk if the IVA fails.
As you are not having issues with your IVA I recommend you therefore stick with it.
Hi Phill -- you might be able to re-negotiate terms -- but they will be informal agreements which the banks can renege on at any time (very likely to happen if they sell the debt on) ... they will also require you to pay until the loan has been settled, and might still add interest.
All in all it is a highly inadvisable risk.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
