Am I allowed to walk away from my IVA?

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mary209

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Post by mary209 » Fri Feb 21, 2020 4:16 pm
I realised that in the last 2 years Aperture has not paid a penny to my creditors.
I asked to speak with one of their managers but up till now has not received any call back
I have sent a letter of cancelled them and want out. Will it affect my credit scores? Is it within my right to walk away from them?

Marty171

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Post by Marty171 » Fri Feb 21, 2020 4:26 pm
you can let it your iva fail, however i see no reason to do this, it is common practice that you pay the iva firm their fees before u start paying creditors and it should have stated this in your proposal, i didnt actually start paying creditors back until my third year.

the creditors are aware of this and when they voted for the iva to go ahead they agreed to this.

at the end of the day as long as you stick to terms of your iva all debt will be written off at the end whether you pay the creditors back 10% or 90%

i honestly wouldnt worry about it, walking away or letting your iva fail would mean you'd be back to square 1 if not further back than you were 2 years ago.
IVA Started 07/07/2017
F & F Accepted 06/09/2019
Completion Certificate 16/12/2019

kallis3

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Post by kallis3 » Fri Feb 21, 2020 4:28 pm
It will affect everything - your credit rating will still be shot and your creditors will add on interest and charges. Let CF sort out your creditors - it will all be sorted at the end.
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Foggy

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Post by Foggy » Fri Feb 21, 2020 4:38 pm
It is standard practice for the nominees fees to be taken first. After that they take an agreed percentage and creditors are paid according to the terms they agreed --- often quarterly or 6 monthly. So it can be quite a spell before creditors actually see anything. However, that is what they agreed to.

You can walk away, but you will be then open to collection / enforcement by creditors, who could also add back the 'lost' contractual interest over the last two years, so your actual debt could well increase quite a bit. Your credit files will be shot, still, for six years from the start date.

It is rarely a good idea to let an IVA fail ... going forward, what are your plans for paying a debt you have already declared unaffordable ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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WallE

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Post by WallE » Fri Feb 21, 2020 9:51 pm
You could, but it would be a total waste of time and money. You'll still owe the full amount to your creditors, they'll most likely add interest in arrears retrospectively, you won't get your two years of payments back, and the IVA will remain on your file... There is no point in stopping now.

The nominee fee (and disbursements like software licensing fees, case management fees etc) will be billed first before anything is paid to your creditors. This will be in your proposal and the creditors will be well aware. For example, if you pay £70 a month and your nominee fee is £1000, it would be at least 13 months of your contributions before it would be covered - and that's before you consider the disbursements. Check section 9 of your proposal, it'll give you the anticipated distribution schedule of your IVA.

Some newer arrangements will pay from month 3 onwards on a fixed fee basis, but it doesn't look like your case is one of these.

It's also worth mentioning that if HMRC are a creditor, your IP won't be able to distribute until they claim as per the standard IVA T's C's.

Have you tried speaking to Aperture about this? It would be a very simple question to answer as to why nobody has got anything yet.

Foggy

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Post by Foggy » Sat Feb 22, 2020 9:24 am
I might add to the above that the defining document, as regards to fees, is often the Chairman's Report of the initial creditors meeting. 9 times out of 10 they tweak the fee structure and, so, are not only in agreement with the fees, but are often the authors as well !

Communication with Aperture is notoriously difficult and you have to keep at them I am afraid.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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WallE

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Post by WallE » Sat Feb 22, 2020 6:05 pm
Fair point, but often a creditors modification on the chairman's report will reduce the nominee fees, not add more. It'll also most likely cap the supervisory and variation fees and also attempt to make dividends pay sooner, hence why most recent IVAs will pay out sooner, often as early as month three with a percentage going to the creditors, and the rest to the nominee. But true, the chairman's report would be a better indicator of what the dividend structure should be.

Lisa Thomas

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Post by Lisa Thomas » Tue Feb 25, 2020 12:34 pm
Can I ask why you want to fail your IVA? You will be back to square one and at risk of recovery proceedings, which could include Bankruptcy.

Creditors don't always receive a dividend until the end of the IVA. check the terms to see what the expected dividend timescales were in yours.
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk
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