www.iva.co.uk

I am in the process of setting up an IVA but have changed my mind. Due to documents not being received and then me unfortunately taking a while to resend, I have paid £700 to my IVA company and nothing has yet been agreed by creditors. Am I free to cancel and get my money back? I really don't want to be in an IVA now.

Hi - it depends what the £700 was for. You can cancel an IVA application up to the creditors meeting but you would need to read your paperwork as to whether the payment would be returned.

Hi, thanks for your reply. The 700 has just been monthly installments that should/would be going to my creditors once everything is sorted. This has been ongoing since Aug 2013 partly my fault partly the IVA company I picked.
They told me that my money was just sat waiting to be distributed once all is in place. Does that mean I can get it back? It doesnt say anything in the paperwork I have about my payments...not that I can see anyway.

Hard to say really have you asked them directly and if so what did they say?

I only paid one payment up front on the understanding should the IVA not be accepted the cheque would be returned.

Which company are you with?

I haven't actually phoned them and asked yet, wanted to get a bit of advice first....

The whole idea of an IVA and being in it for 5 years scares me...I'm not sure whether it is better to stay in it or to try and contact my creditors and see if I can arrange to pay them back myself??

The fact that If I earn a little extra money I would have to increase my monthly payments by 50% of what i earn annoys me aswell....

Oh and I am with GIVA (gopher money)

I would definitely ask them if you were to withdraw from the IVA when would you get your money returned to you and see what they say. Haven't heard of that company personally but maybe one of the others have.

I know you're probably not happy with the 50% uplift payments for extra income earned but you will be protected totally from your creditors, no more contact and all interest and charges will stop. However, having said all that an IVA isn't for everyone and it may not be for you as you say. I would have a word on Monday and withdraw from the IVA until you're 100% it is for you.

What made you go for the iva in the 1st place?

Hopefully when you speak with them on monday they will return your money to you.

Did they discuss debt management plan, bankruptcy or DRO with you? how much debt do you have Natalie and do you have any assets?

I was in a dmp before but my companies were still charging interest and I thought maybe an IVA might be better. No assetts and about 13K in debt

What is a DRO?

Debt relief order ... Suitable for lower debt levels

Have a look here https://www.gov.uk/options-for-paying-o ... ief-orders

It sounds like you might fit the criteria for a DRO which only costs a £90 one off fee

Wow, that sounds mega scary too! How does a DRO work with paying back my creditors?

If you qualify for a DRO then you make payments for a year only. Your credit rating is still affected for 6 years but it is for people with little disposable income.