Should I cancel IVA and take on debts myself or can I make an offer ?

[Danieldw54]

have been in iva for nearly 2 years
my mom has just left me £30000
my iva was £55000 but ppi claims they did have brought it down to about half so I have enough to pay it off
have an hp on car which is due to end in October so they will be expecting this money as well
have tried to carry on with hp but they wont allow
do I cancel iva and take on debts myself or can I make an offer

[rogwal]

Do you have assets?

[Foggy]

Sorry to hear of the loss of your mum. I am afraid the inheritance is payable into the IVA. If, with the PPI and payments you have already made, you hit 100% of the original full debt, plus fees and possible statutory interest, anything over this amount will be paid back to you and the IVA will end.

If you cancel the IVA now the creditors will still be entitled to the inheritance and will also increase your debt by adding back in the lost interest at higher rates than statutory interest.

Try to get some ballpark figures from your IP. If you can close down the IVA successfully at least your mums bequest will have given you a fresh start. If you cancel it could all be wasted.

[rogwal]

Daniel, negotiate with the IP, dont just accept random advice. Your IP will work to get you the best deal, but do not cancel the IVA

[kallis3]

Sorry to hear this but do agree that you should not just cancel the IVA. The inheritance is an asset and will be swallowed up.

[Foggy]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by rogwal

Daniel, negotiate with the IP, dont just accept random advice. Your IP will work to get you the best deal, but do not cancel the IVA

"Random advice" -- as is yours, I guess, too.

Not all IP's were created equal !

[rogwal]

Hi Foggy, I think you will find we are on the same side, I am totally against IVAs, I asked re assets for a reason.
I feel very sorry for Daniel as if he had negotiated with his creditors himself he would have saved fees. Creditors are far more open to settlement and lower payments than ever before

[kallis3]

Unfortunately rogwal, you will find that the vast majority of us on here are for IVA's - especially as we have been through the system ourselves.

[Foggy]

Hi Roger. An IVA, in itself, can be a good thing. I do, however agree that, at times, the advice given can be somewhat lacking, which is down to the advisor not appreciating the information overload for the client --- I also believe that some IP's mix up which is the client (debtor or creditor) at Nominee stage. But, as I said, "not all IP's are created equal" -- which is why we always advocate chatting to more than one firm, as well as a good wander around these pages to see how the firms we are dealing with are handling the supervisory role.

By the nature of the open forum we are not at all privvy to any posters full situation and therefore can only give our opinions, based on the little we know, some from an expert point of view, but more often from the point of view of someone who has been there and has worn, or is wearing, the tee-shirt. Which is why we, again, advocate talking through all options with a qualified advisor or several.

As you know, an IVA is not the only solution out there, however, this IS an IVA forum, so we do tend to be biased towards the IVA in our content

[rogwal]

Hi Kallis, Can i ask what were your circumstances for you to enter into an IVA?

[kallis3]

Too much debt

[kallis3]

Also, I could see the light at the end of the tunnel with the IVA (which was blinding!) and a DMP would have gone on forever, plus I had too much equity in my house for anything else and, as Foggy pointed out - we are for IVA's in the most part but will point posters towards other options if needs be.

[rogwal]

Hi Foggy, I argee that under the right circumstances an IVA is a route, BUT for someone who has no assets, lives in rented accommodation and there job would not be affected by bankruptcy, an IVA should never be recommended.
Recently i spoke to a lady who is 71, sheltered accommodation 6k debt, basic pension, no other income, paying £59.00 a month to an IVA, disgusting!

[kallis3]

I disagree - an IVA is a way to pay back as much as you can regardless of your circumstances and of course you can always answer on those all important questions on forms that you have never been made bankrupt if that is the route you choose.

Just curious as to why you would have spoken to this lady? £59 is not usually an acceptable sum for an IVA. Which company was she using? She could have done a DRO/

[Foggy]

To be honest, I could have gone for bankruptcy, but I wanted to try to honour my debt as much as I could, and, in an IVA the creditors would get more than in BR. I admit, there were times when I wished I had gone BR, but it worked out in the end, with a LOT of help and support from my firm.

Your pensioner, mentioned above, should, I agree, not be in an IVA at all --- and, I fail to see how £59 a month is sustainable ( it will be all fees and costs ).