www.iva.co.uk

Hi people think you for reading.

I am looking for some advice on getting out of my IVA.

I initially enquired about consolidating my debts through this method to stop creditors from coming to my friends door at a time period when I was homeless, I was 22 at the time and wasn't aware of the overwhelming long term implications.

Over a year has passed now and several people have advised me that due to my start out debt being relatively small (£7000) I should not have been recommended this solution.

In fact at the time my IP was clutching at straws trying to help me to find additional debts to even get it to such amount, which reflects unprofessionalism in my opinion.

However I take full responsibility,

Now I understand the fees which are almost the same amount as my original debt, the constraints, the annual reviews and general feeling of incarceration I get whilst under the IVA I really want to try and find a better alternative.

I have considered letting it fail and settling debts with creditors, however I do not want to be made bankrupt by my IP.

Would this be unlikely given the amount it would cost them compared to the debt and lack of assets I own?

I really need some solid advice on this as my mental health isn't good, I feel the debt can realistically be cleared independently and without the need for intervention over so many years.

Depending on your disposable income and lack of assets you could have been offered a DRO which is over in 12 months and your debt written off. Your credit rating will still be shot for six years again.

You can let your IVA fail by missing three payments and your IP is unlikely to make you bankrupt as it costs them too much money.

Can I ask which company you are with?

I would suggest a chat with a debt advisor at Citizen's Advice. It could be, as Kallis suggests, that a DRO would be better, or even a debt management plan (Stepchange are good for those, as they do them fee-free). CAB will give unbiased advice as they have no vested interests.

Thank you for your responses!

I will give the CAB a call soon and see what they advise.