Can I leave my IVA and arrange a payment plan direct with my creditors ?

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Louise.mn

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Post by Louise.mn » Fri Nov 14, 2014 9:44 pm
I am currently in an IVA, my payments were recently reduced due to me becoming a full time mum. Can I leave my IVA and arrange a payment plan direct with my creditors?
 
 

Foggy

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Post by Foggy » Fri Nov 14, 2014 9:58 pm
You could terminate the IVA or allow it to fail by missing three payments. However, this will lead to your creditors adding back unpaid interest and late payment charges and your level of debt till increase significantly.

Also the creditors might be unhappy about negotiating after you have given up the chance offered by the IVA.

Whilst in the IVA you are protected from recovery action as well as being excused any interest charges. In an informal plan this protection will not be available and creditors can change their minds at any time, assuming they agree in the first place.

Might I ask why you are considering ending the IVA ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

Louise.mn

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Post by Louise.mn » Sat Nov 15, 2014 7:36 am
After receiving annual statements from a gew creditors i noticed that some have only received 24p - £1.00?

also my husband was in a dmp with the same company I have my iva with. After reviewing his (with it saying it would take til 2024 to be debt free) I contacted all his creditors, offered slightly higher payments direct to them from my husbands bank by standing order & direct debit, he will now be debt free in 3 years. (Offered slightly higher as he was paying a protect my payment to the company so split that over his creditors)

Just curious as how we could sort it so easily & save 7 years of debt for him. So thinking maybe i could do the same, just didnt want an hassle if i did chose this option & decide to leave my IVA??
 
 

Foggy

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Post by Foggy » Sat Nov 15, 2014 10:06 am
It is a consideration -- but I would say that you have been lucky with your husbands creditors (and warn that they can still back out at any time and revert to the contractual loan agreement).

To be honest, and purely my own personal opinion, it is a gamble I would not be prepared to take.

There are a lot of anomolies in the insolvency world: For instance you might find a creditor pushes as the meeting for a higher dividend, say 25 pence in the pound, instead of the 20 you are offering, by reducing an allowance or two. Then once in the IVA they sell the debt on for 10 pence in the pound!
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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