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Is it possible to cancell an IVA and start paying creditors berfore i took out an IVA?

Hello dapper1

What stage of the process are you at? Has the IVA been approved by creditors? If not then you can withdraw your proposal before the meeting or earlier if the meeting hasn't been convened. However if the IVA has already been accepted by your creditors it will be more difficult to cancel it.


Jane Finch
Insolvency Practitioner

AccumaGroup - A large insolvency practitioner service based in Manchester.
www.accumagroup.com

Hi Dapper1,

If you could provide more information this would be useful, because I am a little confused, how would you be able to pay your creditors? To enter an IVA you must be insolvent, meaning you are not able to pay the money back in full or can no longer meet your contractual monthly payments. Has this changed for you?

Best Regards. IVA Experts

I am in a similar situation myself. I have not agreed to the the modifications yet and in the time it has taken to set up my IVA I have received a job offer with an increased salary and am now in a position to start repaying my creditors the agreed repayments as agreed at the time I took them out yet even though I am sure this would be a more appealing situation for both creditors as they would get all their money back plus interest I cannot for love nor money get hold of my IP to confirm that this is possible!!

Assuming that your creditors meeting has been held, and that the modifications you mention were proposed at the meeting, a valid IVA cannot have commenced.
Either your IP is treating the IVA as having failed or the meeting of creditors has been adjourned (which can only be for a maximum of 14 days).Either way the IP should formally advise you how the outcome of the meeting is being treated and you should receive a copy of the minutes of the meeting.
As a valid meeting cannot have been held you cannot be bound to an IVA (and will be deemed to have failed) and you are free to make your own arrangements with your creditors.
Your credit rating will still be impaired but eventually paying off your creditors in full will be better for your credit record than having to rely upon an IVA.

Have just had a reply from my IP's office. Apparently it is possible for me to get out of the agreement at this stage but I will have to pay the nominee's fees of £2500 which is not payable in installments but must be one lump sum. I feel like crying my eyes out, I thought they were supposed to be acting in my and my creditor's best interests? If I can pay the creditor's back in full without relying on an IVA then surely that is best for both of us? All they seem to be bothered about is getting their big fat fee in one go. [V]

They're basically forcing me into an agreement which I don't need. I feel so lost now, I thought I was doing the right thing.

Hi
Well if you have not agreed to the modifications then your IVA is not up and running and you can still pull out and there is nothing that the IVA company can do about it and they certainly can,t charge you for the nominee fees,it,s a risk that they have to take when proposing an IVA.
I wonder if your IVA provider has accepted the modifications without consulting you ?
Have you spoken directly to the IP ?
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

Thank you Andy, that is a huge relief. When I received the letter through with the modifications it said that the agreement had been accepted by my creditors with modifications. But if I haven't agreed to them yet then surely such an agreement can't stand?

I have spoken to someone from my IP's company this afternoon and they said that I was free to negotiate myself with my creditors but I would still have to pay them the nominee's fee as a lump sum. It seems slightly ironic that the only people who really want to keep me in debt are the people I was referred to to help me out of it.

Thank you so much for your help though, you have no idea what a relief it is to me.

I alongside Andy am concerned that these mods have been accepted on your behalf by your IP. Contact the IP directly and ask how your IVA can have been agreed if you haven't agreed to the modifications requested by your creditors.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

I think that the IP will be relying on an engagement letter which probably states that the nominees fee is payable if you pull out of the procuedure prior to or at the creditors meeting for no good reason.
This is a bit of a grey area because the purpose of the engagement letter is to ensure that clients just don't pull out leaving the IP having done the work and not getting paid.
Frankly I don't think that is unreasonable, but there is also an implied duty on the IP to advise you how to propose an IVA that will be accepted. (in theory without modification). If it was reasonable for you to reject the mods that the creditors proposed then most IP's terms of engagement would not expect the fee to be paid.On the other hand, if you have just changed your mind and you did sign an engagement letter with this type of clause in it, the IP might just take the view that you owe the fee.
I am sure that this can be resolved by talking to the IP. Try to get some more information as to why the IP considers that you will have to pay the nominee fee but DON'T agree to the IVA, if it isn't right for you, just because of this issue.

I wouldn't think it was half as unreasonable if they didn't expect me to pay it all in one go. OBVIOUSLY I haven't got that sort of money. Also, at the start of the arrangement I had to pay £19 insurance fee, does this not cover these sort of situations? And also, is it not considered a good grounds to not want to continue with an IVA at this stage if it is no longer necessary? I do not need this arrangement to pay back my creditors anymore so I don't see why I should be made to go along with it.

Hi
Well if they are demanding the nominee fees because you are pulling out for no good reason then the IVA has not been started.Therefore the question is whether or not the modification give you good reason to pull out ?
What were they ?
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

The modifications, although I have not yet signed and returned them, are not the reson I am pulling out. The reason I am pulling out is that due to a change in circumstances I can now afford the repayments which my creditors require and would like to arrange to pay them back my original agreed payments to pay them back what i owe them in full. Which I think is best for me and also for my creditors. The IVA has not started yet and I have not agreed to the final draft. The IVA has taken six months to set up and no longer has my correct address, expenditure or even creditors.