If an IVA fails, would it be possible for me to write to my creditors and arrange payments with them, rather than opt for Bankruptcy? Would the creditors begin charging interest on the outstanding debts? I have an IVA with Blair Endersby and they are charging me £652 per month on a £30,000 debt. By writing to my creditors, I would not be paying Blair Endersby for their service ( or am I out of my depth and talking rubbish!?
Hi Paul, Welome to the forum, I am sure someone more knowledgeable will be along shortly, but my take on your situation is that if you were to fail your IVA and revert to an agreement with your creditors then interest would not be frozen and would start to accrue again and it would take you longer than the IVA 5 years to pay this off. How long have you been in an IVA and is it only the fees that is concerning you?
Doing a quick calculation if your IVA is over 60 months you will be paying back just over 39,000. Which when you add fees etc is 100p return. I can see how a DMP would be attractive.
I myself would prefer to stay in the protection of an IVA as the creditors will start to add interest and possibly charges on which would probably end up as much as BE's fees over the course of your repayments.
If life is what you make it, I must have been in a strange mood when I made mine
Hi there & warm welcome to the forum from me.
There are lots of experts on here to advise and Im sure they will be along. You can let your IVA fail and attempt your own negotiations with creditors, but doing so will not protect you from interest & charges being added, it would be up to the individual creditor.
Final IVA payment made in April 2013, never ever thought we could do it or get through it but we did! X
An IVA.co.uk Mentor is someone sharing from their experiences of dealing with debt
Are you struggling with your payments or are you trying to avoid "the middle man" fees so to speak?
As the others hae said, you can let the IVA fail, but there is no guarantee the creditors will agree to your repayment plan and of course all charges, interest etc may be added on.Also, the repayment plan could last a lot longer than your IVA.
Can I ask, why you never went down a repayment plan with your creditors before opting for an IVA?
Hi Julie!
I suppose I panicked and responded to the first IVA advert I saw on TV. How likely would it be if I asked Blair Endersby to reduce the monthly payments as I am struggling (big time) to keep up with the repayments? I think that its only a matter of time before I opt for bankruptcy, but I don't know the first thing about it and what it entails. I have no assets and the house is rented - I have heard that payments are taken direct from your wages.
I can relate to you responding to the first advert..we did pretty much the same thing! Boy if I knew then what I know now [:(]
If you are struggling, you should contact your IP...has anything changed to make the payments difficult or has it always been a struggle?
You can submit a new income & expenditure form and your IP will be able to advise if reduced payments can be made with /without creditors agreement.
If there was no alternative and you decided to go BR, then any payments would be made on a monthly basis via direct debit, not your salary. Try not to worry about BR details yet.
Please contact your IP and let us know what happens...we're here to help and won't judge you xx
Hi Julie! I have submitted a new income and expendiure account and will post it off tomorrow. I will certainly keep you informed as to what their response is. Thanks again for your ( and other members ) continued support.
Paul xxx
I am sure that your IP will look very seriously at your revised income and expenditure, and try and assist with reduced payments so long as this could be justified to creditors. No-one concerned will want to see a failed IVA, least of all your IP or creditors.
I am with BE and although I have had to increase payment to them, twice, because of pay rises and other additional income, I found them helpful and not wishing to 'fleece' me of every additional penny they could squeeze out of me. I am even very slightly better off than when I entered the IVA with them. Give them a call and talk about your situation. I take it you have not taken into account the interest and the £30k is a net figure? The security of an IVA has got to be a better option than BR or a DMP.
Hi Paul, Im sorry to hear that you are struggling understand your situation as I have been there before. But once the BE picked up on my problems from my posts on this site, they were quickly resolved & I was able to make my I&E more comfortable n continue with my IVA.
Im also with the same company as yourself n Im sorry to say, I have never had any response from anything I have ever written to them.
I usually find its best to give them a call and ask for an appointment with your account manager.
There is BE rep whom monitors this site & should pick up on this.
Final IVA payment made in April 2013, never ever thought we could do it or get through it but we did! X
An IVA.co.uk Mentor is someone sharing from their experiences of dealing with debt
bassetlaw wrote:
Hi Julie!
I suppose I panicked and responded to the first IVA advert I saw on TV. How likely would it be if I asked Blair Endersby to reduce the monthly payments as I am struggling (big time) to keep up with the repayments? I think that its only a matter of time before I opt for bankruptcy, but I don't know the first thing about it and what it entails. I have no assets and the house is rented - I have heard that payments are taken direct from your wages.
From your own figures you look to be paying cira 100p in £ so why do an IVA if you can afford to pay the whole lot back over a relatively short time ?
Were you afraid of the uncapped interest payments ?
I took nearly a year to decide an IVA was right for me after I starting missing payments.
