Cancelling my IVA

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shannon620

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Post by shannon620 » Thu Feb 25, 2021 9:41 pm
Hi, just signed an IVA 3 weeks ago, however I have spoken to the National debt service and my local Citizens advice, and the IVA is not suitable for me after a lot of thought I’m on benefits at the moment and I can offer my creditors a better pay than that within the IVA to the extent I can clear the full balance in half the time of an Iva, I was advised both by CAB and NDS to contact IP request to cancel my IVA other advising to cancel payments also however I don’t have a DD or standing order to cancel? There is no option for this. It was portrayed as being able to save me from all my debts etc. But I want to pay my creditors back. Whereas with the IVA they will barely get a dime by the end. Small debt around 5.5k but I can pay the vast majority in the first 12 months if I set up with creditors myself
Can anyone give me some advice on what will happen if I cancel. I wouldn’t need to ask but communication to my IP is appalling I have emailed, and rang and left messages number ours times over last few week. Thankyou.

kallis3

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Post by kallis3 » Thu Feb 25, 2021 10:39 pm
If you cancel you can go back to paying your creditors yourself but there is no guarantee that interest and charges will be frozen and you could end up paying back more.

I am assuming you have not yet had a creditors meeting?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
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Foggy

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Post by Foggy » Fri Feb 26, 2021 8:25 am
Shannon. You say you signed 3 weeks ago --- do you mean that you returned the proposal to the IP to arrange a creditors meeting? Or was the creditors meeting 3 weeks ago and the IVA has started ?

If the meeting hasn't happened yet you need to contact them in writing as well as on the phone to get them to stop it going ahead.

Who is dealing with the IVA ?
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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shannon620

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Post by shannon620 » Fri Feb 26, 2021 9:37 am
Hi, the meeting went ahead they sent me the proposal of modifications etc to sign 3 weeks ago and I signed them, so it’s started now. I was planning to go bankrupt. The CAB and NDS told me to contact IP to cancel it and I didn’t need to specify I would be going bankrupt but then we had another discussion and that the creditors would prefer me not bankrupt if I can pay them. Around 70% would be cleared within the first 12 month we have worked out. I’ve sent an email and rang the customer services for my IP as he gave me no direct information. They say they will email his team but who knows when he will contact as I’m still waiting for a call back from 3 weeks ago.

Foggy

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Post by Foggy » Fri Feb 26, 2021 10:07 am
If you fail to make three payments the IVA will simply fail. It seems that you are already keeping creditors in the loop, so they might be more supportive, knowing they will get more in the long run.

In most cases, where an IVA is cancelled or fails, the provider loses the fees. However, do check your terms with them in case they expect you to still pay those fees accrued so far.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

shannon620

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Post by shannon620 » Fri Feb 26, 2021 11:43 am
.1. There is a period of time between you signing your IVA Proposal and the date of your creditors’ meeting of at least 14 days. If at any time during this period you decide, for whatever reason, that you no longer wish to go ahead with the IVA process you can cancel your IVA simply by letting us know. Your Proposal will be withdrawn, we will let your creditors know and there will be no charge to you. Any money that you have paid to us will be refunded to you.
6.Similarly, you can decide not to proceed at the creditors’ meeting, either by not agreeing to modifications that the creditors have asked for or asking for your Proposal to be withdrawn. This will have the same effect as set out above.
6.However, once your IVA has been accepted then you will be bound by it, just as your creditors will be. If at any time after this you decide that you don’t want to continue, you do have the right to ask the Supervisor to end your IVA but it is important to note the following:
6.The Supervisor may issue a Certificate of Termination but does not have to until any administrative tasks have been completed. This may include realisation of further assets under the terms of the IVA and might take a considerable time after you have requested.

2. You will not get a refund of anything paid into the IVA. Any funds will be used to pay towards outstanding fees and expenses and, if any surplus remains, will be distributed to your creditors.

3. If you have failed to adhere to the terms of your IVA with your creditors and it terminates, your creditors will be free to take further action against you for the balance of your debt to them (which may include petitioning for your bankruptcy


THESE ARE THE ONLY PRTA UNDER CANCELLING THE IVA OR IF IT FAILS.
Thankyou.

kallis3

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Post by kallis3 » Fri Feb 26, 2021 12:17 pm
You are bound by it and can request a termination. It is unlikely your creditors will petition for BR for a small amount as it would cost them more.

Is there anyway you would be able to do a DRO?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk

shannon620

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Post by shannon620 » Fri Feb 26, 2021 1:39 pm
I’m unsure when I can contact the creditors? Do I have to wait until it is fully terminated or could I contact them now? I’ve requested a termination by email and phone. Still no reply. I’m unable to cancel the IVA payments as it isn’t a direct debit simple cancellation so I have had to email the financial support systems (company for IVA) and request future payments to stop. I don’t know much about the DRO as when I went through my options I was pushed more to the IVA. I will look into it, but I did want to contact my creditors ALL of them to arrange a better payment for them which I know they will accept as it’s a larger monthly pay and will be paid off in less than half of the IVA timeframe. I want to pay back what I owe rather than try wipe it in bankruptcy or the rubbish amount they will receive in the IVA. Thankyou :)

Foggy

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Post by Foggy » Fri Feb 26, 2021 1:53 pm
Did you agree to a recurring card payment ? They have been notoriously difficult to stop in the past !
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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shannon620

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Post by shannon620 » Fri Feb 26, 2021 2:58 pm
It could be yes, It just says that I give authority to them to take X amount monthly and I can contact them via email to give 72 hours notice to cancel the payment. I do have another back up account (they know about but don’t have permission to take monthly payments from) that I could switch my benefits to if they don’t cancel in 72 hours?

kallis3

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Post by kallis3 » Fri Feb 26, 2021 3:09 pm
I would certainly consider doing that just in case
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
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