Coming off my IVA?

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jay903
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by jay903 » Tue Oct 16, 2018 8:36 pm
Hi, I started my IVA January this year and I have been offered a new job which would increase my income considerably, would I be able to come off my IVA and deal with my debtor's myself, or could I change from an IVA to a debt consolidation as I want all my debts finished within the next year.
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Foggy
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by Foggy » Wed Oct 17, 2018 6:58 am
It is possible to allow the IVA to fail, but it would remain on your credit files for the full 6 years. The creditors will add back lost interest and possible charges and will be able to pursue collection as they see fit. They might not wish to negotiate a repayment plan. That said they would be foolish not to -- but they do not always follow the same logic as the rest of us. Of course the new job might not be viewed as stable as your current job, so there would be a risk there for them to consider.

As the salary increase will give you a chance to save your share (50% of the extra income) maybe think about staying in the IVA a while and saving your shares to make a F&F offer based on outstanding payments.
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kallis3
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by kallis3 » Wed Oct 17, 2018 8:31 am
I agree with Foggy.
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jay903
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by jay903 » Wed Oct 17, 2018 11:22 am
Foggy wrote:
It is possible to allow the IVA to fail, but it would remain on your credit files for the full 6 years. The creditors will add back lost interest and possible charges and will be able to pursue collection as they see fit. They might not wish to negotiate a repayment plan. That said they would be foolish not to -- but they do not always follow the same logic as the rest of us. Of course the new job might not be viewed as stable as your current job, so there would be a risk there for them to consider.

As the salary increase will give you a chance to save your share (50% of the extra income) maybe think about staying in the IVA a while and saving your shares to make a F&F offer based on outstanding payments.



Thank you
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Lisa Thomas
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by Lisa Thomas » Thu Oct 18, 2018 9:42 am
If you fail your IVA the IP will take their costs out of the monies you have paid in to date. There may not be anything left for the creditors. You will then be back to square one and will have to pay your total debts plus interest and at risk of debt recovery proceedings.

How much are you total creditors and what assets/contributions have you paid in so far/are you due to pay in future?
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kallis3
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by kallis3 » Thu Oct 18, 2018 9:48 am
Where would you be getting consolidation from? You wouldn't be able to get a loan and if you mean a DMP it will probably take more than 12 months and no guarantee interest would be frozen.
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