What happens if you want to end the IVA agreement because you strongly believe :
You realise the IVA advise/information was misleading/mis-sold at the start
Do not agree to the charges based on a % fee
Did not agree to property remortgage being part of agreement but was added and advised it was required for another reason other than remortgage
it may help some others to advise you if you could tell us at what stage are you in your IVA ?
You could stop paying which wold cause your IVA to breech and eventually terminate.
It's worth bearing in mind that should you choose to go bankrupt instead of continuing the IVA, the payments/duration of the IVA have no bearing. This would mean that you have to pay all your disposable income over for 3 years
Hi. These terms would have been either in your proposal when drafted, or introduced at the creditors meeting right at the start of the IVA. You should have been advised of any changes during the post meeting phone call and could have objected then.
If this isn't the case you have grounds for complaint, initially through the firms formal complaints procedure, and then, failing any acceptable outcome, to their regulators.
If the IVA fails, by whatever mechanism, the creditors will add back on any unpaid interest and, possibly, late payment charges, so your debt will increase substantially.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks for the info -
Its not a matter to choose to go bankrupt just don't think the IVA was the best advise i was given at the time and that the IVA is not what it is cracked up to be for some. If you are unable to work/regain work or lower income, for what ever reason and don't own your home then IVA is probably best option. I was lucky to find a new job quickly. I pay more for the IVA than i dud of paying of the original debt with interest over same or shorter period of times - surely there is a review mechanism to revert back ?
I also cant see how making a person remortgage their house to incur even more debt after a period of struggling to get out of debt is responsible in any guise - especially when your credit rating is non existent anyway and none of my originally debt was secured against the property in the first place.
I was told that my property would not be affected taking on an iva and the only reason to sign the form was to stop people from selling up making a profit and disappearing ( have this in writing) - which i can understand - Feel duped by the whole process and these IVA providers people who claim to look after your interests is not all it is cracked up to be to be honest - but thats my honest opinion.
I was told that adding back on unpaid interest was not allowed, if you agree new terms with the creditors direct?
I want to pay my creditors back what i owe - its not a matter of trying avoid or find a way of not paying back my debts. But the more i was told to pay it would quickly reduce the term of the IVA - which is not the case as the IVA provider grabs a % of what i paid in first, so in fact i am not paying more of the debt off just lining the IVA providers pockets more- which defeats the object of paying more into the IVA. Another misleading bit of advise from the IVA provider. Would of been better off unemployed or low paid and stuck the original repayment plan and pay back a percentage of the debt. But I didn't - i wanted to get the IVA off my neck asap. I didn't choose to be made redundant it happened- out of my control. Now i have some control back into my finances, all i seem to get is penalised even further for it with this IVA
I agree I feel the iva co just try and screw every penny out of you I was advised to take out an iva over bankruptcy the court decided my disposable income was 160 a month my iva is 220 a month even telling me my mobile phone bill was too expensive and my sky tv
An iva is an excellent debt solution for those people who can pay back to their creditors a % of their original debts.
If you continued to rob peter to pay paul, like many of us prior to going into iva's, what would be the total amount of interest paid on your debts, and how long would it be before you were debt free ?
I think you will find the interest added over the never ending term of paying your creditors would far exceed that of your Ip fees in a iva. Likewise months to pay would never stop as interest would continually be added ....with an iva you have 60 months, or 72 months max before you are debt free !
I know which option i would take !
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Not necessarily true Luluj- some debts are fixed terms and agreed amount of interest - IVA is another form of consolidated debt which involves another 3rd party than the creditors - but the amount of what you pay back is not always going to the creditors as the more you pay the more you find the iva companies take their cut first so it fluctuates - just say it like it is. Agree - Iva are good for those in difficulties. Some people it suits some people it doesn't
I find it difficult to understand why you feel you were not advised about the way the IP's fees are chargeable or that you had to consider releasing equity, when both terms would have clearly been included within the IVA proposal you signed Kevin. That said, if you feel you want to terminate the agreement, simply notify your IP and they will then commence termination procedures in line with the requirements of the IVA contract.
