Reversing an IVA

[icebrick]

I am in the middle of initiating an IVA. Basically if there is an issue can I reverse the process before mutually agreeing to an IVA proposal? I am assuming that any IVA proposal submitted by my IP has to be approved by the creditors through a creditors meeting and then acknowledged by myself prior to proceeding.
If my creditors agree on the first draft submitted, then would I be able to decline this proposal and opt for bankruptcy at this stage? I have made a few drastic compromises to my monthly expenses to fit into the IVA criteria.

Also would someone kindly tell as to when the IVA becomes a legal commitment?

Cheers.

[cfnc]

As far as I am aware you can stop all pre IVA proceedings at any time. I would speak to your IP though about your worries, they may be able to advise you your best course of action whether it now may be bankruptcy.

All the best,

Kirsty

[icebrick]

My IP told me how a Bankruptcy has a dramatic setback on my credit rating as opposed to an IVA which has a lesser impact. She advised me on some of the jobs I will not be able to apply for (all of which don't apply to my field) and told me about how it can dramatically affect any future potential credit applications including a decent rate mortgage. But as I have no assets at all now, it seems like the best option.

[cat 1]

I'm no expert but I know my IVA has had a dramatic effect on my credit and others on the forum.It's zero.People have even found difficulty in changing thier phone/broadband provider as they do credit checks.Be very clear about what you are doing.Cat

[Skippy]

I sounds as though you need to get a second opinion. Both an IVA and BR will wreck your credit rating and both stay on your credit file for 6 years from the date of the creditors' meeting / BR order.

[kallis3]

If you are not making any payments to creditors, then your credit rating is shot already. If not, then as soon as either are agreed you will be stuck for the next six years.

You say you have made some drastic compromises for an IVA -I imagine you would have to make the same ones for BR.

As far as I can remember, and IVA becomes legally binding as soon as you get the phone call after the creditors meeting and you agree what has been said.

[icebrick]

My IP was telling me that future creditors will weigh the BR different to an IVA as an IVA on Credit file implies that you have paid back some of the debt. She also told me that BR is there on your credit file for life.

[Viki.W]

Hey Ross, I think you're getting some duff info there. If you can afford to pay IVA payments then you can afford to pay into an IPA/IPO in Bankruptcy so you're still paying something back either way. Your credit file, as everyone has said, is still affected for 6 years and I wouldn't think creditors would view it any differently. Who did myvesta pass you on to? Viki X

[icebrick]

Grant Thornton.

[Viki.W]

I think a few members are with them, maybe they can tell you what they are like to deal with.

In my opinion, for what it's worth, I don't think you have made your mind up yet so I wouldn't proceed. If you do, If you have paid any upfront fees you should make sure you can get them back if you decide to pull out.

Can I just ask why you are now thinking bankruptcy is not the way?

I'm sure one of the experts will help, good luck. Viki X

[kallis3]

I think that BR also drops off after 6 years. I know that certain jobs are happy to employ discharged BR after 3 years.

Viki is right - if you can afford to pay into an IVA, you can afford to pay some towards Bankruptcy.

[aguise]

Hi icebrick
If you are saying that you have reduced your expenditure drastically to allow enough disposable income for an iva to be viable then that is not sensible as you are going to struggle from the beginning. These allowances need to be reasonable for your needs or you are just not going to manage.
As for the credit I think both bankrupcy and an iva have a similar effect on your credit as would even a dmp.
I would seriously get another opinion before moving any further forward (melanie). You will still make payments in bankrupcy though they will be for a shorter time 3 yrs and only a percentage of your disposable income rather than the full 100%. I believe the allowances are more reasonable to a degree as well. Read skippys blog which gives lots of info.
get more advice, all the best.

ang

[icebrick]

Going back to the point Kallis3 made about enjoyability after a BR, I am a bit curious as to how it affects my future job prospects. I know that some of the jobs will be off limit such as certain jobs in the financial or banking sector but how about Business and IT? And why after 3 years? Will an IVA have less of an impact on my future prospects?

[kallis3]

Did you mean employability icebrick?

I work for the police in a civilian capacity and I know that for BR and IVA in my force it is 3 years after completion/discharge before they will employ you.

As for business and IT, I really don't know. I suppose it would depend on each separate firms policy.

However, if you are that much in debt that you are considering either, I presume you are either not making payments or are not far off being in that position.

If that is the case, then you will have to do something about it, or your creditors may do it for you.

[icebrick]

Also, will Melanie's team be able to initiate a BR for me if this is somehow the healthier option?