Can I fail an Iva, and then start a Debt Management plan? and is it the same as an Iva? do they do an annual review and take your bank statements and payslips?and how long does it take to set up, and sorry another question, how do I find out how much I have paid to my creditors already through my Iva? thanks for any help.
Your IP will be able to tell you how much has been paid to creditors and, if you allow the IVA to fail, will give you a final report with all the information in. However, the amount paid across already is immaterial as the creditors will add back unpaid interst and possible late payment charges, which will wipe out anything thay have been paid so far and might even increase the original debt.
If you fail the IVA there is no guarantee that creditors will co-operate in a DMP --- they are under no compulsion to do so, nor are they under any compulsion to remain in the DMP if they initially agree. A DMP is an informal arrangement and the time taken to set up will depend on how co-operative creditors are. They do not carry out formal reviews or keep a microscope on your finances. On the other side of the coin you have no protection from debt collection, should creditors so decide.
Finally, in a DMP there is no time limit and you could be paying for many years until such time as you have repaid the whole debt along with interest if not all creditors agree to freeze it.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Visit my blog here : http://foggy.blogs.iva.co.uk/
Sharing from experiences of dealing with debt
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If you fail your IVA you are at risk of creditors taking repossession proceedings against you and they may not necessarily agree to a DMP given you have failed one repayment agreement. Even if agreed a DMP may end up being more onerous than the IVA you already have in place.
Why do you want to fail your existing IVA, whats the problem?