Im uncomfortable with my IVA. The whole thing goes against my grain and I want to pay all my debts off in full. I have another 19 months to go at £217. My total debt was for £34000. Its highly unlikely that I will be able to release what bit of equity is in my home since my credit will be so bad, but I would be willing to up my payments to my creditors to £300 for the next 15 years with regular reviews to pay more when I can, like a debt management plan instead. That way everyone would be paid off and I would feel better. I know its in my IPs interest to keep me in the IVA but I will sleep better knowing Ive done the right thing and paid my debts properly. Can I do this if I want? Would my creditors agree to that given the length of time it would take or would they just go for bankruptcy instead if I stopped the IVA knowing they would get £15k at max? If they agreed to my proposal they would get all their money back but the downside is that it would take longer. What does anyone advise here?
HI there. Many of us felt the same way in wishing to pay back all of the debt, however, circumstances conspired against that and an IVA was the best alternative.
The DMP route, if you wish to be in debt limbo for decades might work. But, during that time any of your creditors, or those they have sold the debt to, might pursue you through the courts for various remedies, including walk in repossession of belongings and / or home, before bankruptcy.
Also consider the fact that, when and if the IVA fails, your creditors will add back on interest unpaid during your IVA, as well as any other charges they feel they can get away with. Your "original" debt will be considerably higher.
Your creditors take a purely commercial view and will not give points for your morals and, in agreeing to the IVA they will get back, at the end of the day, whatever sum they have now agreed to receive.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Really think you need to discuss this fully with your IP. We were the same as you determined to pay back everything ... It isn't always possible to do this and like others have said coming out of your iva and entering a dmp may cause further issues if creditors add back interest on to the balances.
Personally i would look to use the time left in your iva to pay in everything you can so that you know at the end you did your very best !
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
You will end up paying a fortune in fees as someone would have to be regularly splitting the cash in the pot to send to creditors.
I understand your desire to repay your debts in full but often creditors lack morals so I dont see an issue in some debt forgiveness after using an iva the sort out debts.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
I agree with all of the above. We have just started out and wanted to pay everything back in full but it was impossible so hence the IVA. And, one thing that struck me recently is (as Paul says, there is a lack of morals out there) that if the creditors hadn't been so darned greedy by continually hiking interest rates and reducing capital repayments they would have probably got the whole lot back.... and, from all the interest they have charged us over recent years they have probably had it all back anyway.
Many people would tell you cathycat, that you are mad to want to extend the term of your IVA simply to see creditors get repaid in full. But if you genuinely feel that this is right for you, I would ask your IP to terminate the arrangement and then enter into a DMP with a non-fee charging company such as Payplan or StepChange, given that all of your monthly payment would be credited against your account thus reducing the repayment term than if you were to use a commercial fee charging company. As other posters have stated, this does carry some risk as you cannot rule out that creditors would not take any legal action against you or your assets.
As an alternative, the IVA could complete on time and if you feel that you then want to carry on making voluntary payments to those creditors I am sure they would not turn your money away, but you would be comfortable in the knowledge that they could never enforce the balance of their debts against you.
Having completed I felt the same but then on the other hand I also felt they encouraged me into debt. When I completed my IVA I started to donate £100 to charity rather than paying back the full amount I owed. At least te money I pay goes into a good cause rather than a bank who lent me money knowing I couldn't pay!
Got married two months after i completed! Building my life back up again but still staying on here to support all those who helped me in my times of need!
I understand we all think differently and I was of the thought that my IVA was finished, I had done my best etc.,
To go into a DMP I personally would be wary of charges and interest being added on again thus making the debt larger in some cases. At least in the IVA you're protected from that.
At the end of the day up to you and I wish you well in whatever you decide to do.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Hi again Cathycat, I am not 100% sure maybe one of the IPs can clarify - if you start a DMP I think the black mark stays with you for six years AFTER you complete it, but with an IVA it is six years from the start. If so, this might also be something to think about.
Many debts in IVAs are purchased for a small percentage of their face value so the creditors in your IVA may already have made a profit. It is highly unlikely that your original creditors are still the same so if you do decide to repay in full you will be boosting the profits of debt purchasers and not repaying the creditors who you originally borrowed the money from.
Let your IVA run its course,be proud that you did your best and move on.
