How do I cancel my IVA?

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dave422
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by dave422 » Fri Feb 23, 2018 2:08 pm
Hi. I was looking at cancelling my IVA. The payments the company are asking for are more than I can afford. I spoke to them and they say they won't lower the payment. I've worked out I'm going to be paying much more for my initial debt. Would it be a good idea to fail my Iva then offer payments to the companies I owe?
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Foggy
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by Foggy » Fri Feb 23, 2018 2:18 pm
It is not usually a good idea to cancel an IVA, the creditors will add back lost interest and may not co-operate with arranging payments going forward.

Might I ask what your total debt was and what your payment is now ?
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kallis3
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by kallis3 » Fri Feb 23, 2018 2:21 pm
Hi,

It is your choice but don't forget you will still have interest and charges to pay. Why can't you afford your payments?
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dave422
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by dave422 » Fri Feb 23, 2018 3:12 pm
My debt is £7500 I have paid £1500 over the last year at £126 p/m but they are now asking £186 p/m. They calculated my earnings over the next year and it's above what I earn currently. I spoke to them about this but was told no change will be made. I asked for a breakdown of my payment made to creditors and what I've been paying to the company dealing with my Iva and was told computers were down that day. I feel I rushed into the iva and now have read many bad reviews of the company dealing with it. This is another reason why I feel I want to cancel and try paying the creditors first hand.
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Foggy
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by Foggy » Fri Feb 23, 2018 3:51 pm
dave422 wrote:
My debt is £7500 I have paid £1500 over the last year at £126 p/m but they are now asking £186 p/m. They calculated my earnings over the next year and it's above what I earn currently. I spoke to them about this but was told no change will be made. I asked for a breakdown of my payment made to creditors and what I've been paying to the company dealing with my Iva and was told computers were down that day. I feel I rushed into the iva and now have read many bad reviews of the company dealing with it. This is another reason why I feel I want to cancel and try paying the creditors first hand.


Looking at those figures you will end up paying the debt, plus fee and possibly some statutory interest. As for the recent increase in payments, ask them for a detailed breakdown of their calculations. They cannot "invent" income, so that, at least, should be corrected. Speak to the IP directly, rather than a case worker. If no joy lodge a formal complaint which you can escalate to their regulators if need be.

Might I ask who you are with ?
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Lisa Thomas
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by Lisa Thomas » Fri Feb 23, 2018 3:56 pm
I agree with Foggy - ask them how they have calculated the increase is affordable.

Failing the IVA puts you at risk of recovery proceedings from creditors and potential Bankruptcy.

If Bankruptcy takes place the Trustee will set a figure for your contributions which would last for 3 years so you could be worse off.

Plus you assets, if any, will be at risk and a whole host of other issues to think about.
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