How do i get out of IVA?

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huw
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by huw » Tue Aug 29, 2017 9:58 am
I am in an IVA that I'd love cancelled for cause. The IP tried to tell me that that would a failed IVA, nomenclature blows, and I'd be bankrupted by a creditor. I have much improved circumstances and am ok to resume payments and was given poor advice, ignoring bringing my family in, in the first instance - should have been a dmp. How do I get out of this?
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kallis3
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by kallis3 » Tue Aug 29, 2017 10:54 am
Hi,

You can just let it fail by missing 3 payments - a creditor is unlikely to make you bankrupt (unless it is HMRC). Bear in mind that creditors can add interest on if you do that.

How long have you been in your IVA for?

Your IVA will remain on your record for 6 years regardless.
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Michael Peoples
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by Michael Peoples » Tue Aug 29, 2017 11:08 am
If your circumstances have improved then your IVA payments will also increase but only by half of the extra money. Creditors will get more than originally thought, the IP will earn extra fees and you will still be debt free at the end of five [or six] years. It is rarely a good decision to cancel an IVA when the payments are affordable so I suggest you give it serious thought and maybe seek independent legal advice.
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Foggy
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by Foggy » Tue Aug 29, 2017 11:19 am
I have to agree that it is rarely a good idea to cancel an IVA once it has started. Creditors will add back lost interest and charges and you could end up with higher debt than you started with. They can. although unlikely, to use bankruptcy as an enforcement option and your IP is correct in advising you of this possibility (though it is ony a possibility, by no meansd a certainty). Unless debts are small and can be dealt with within half a dozen years a DMP is rarely the solution of choice, being informal and creditors can back out or refuse at any time.

I am happy that your circumstances have improved and hope it remains so.
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Lisa Thomas
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by Lisa Thomas » Tue Aug 29, 2017 2:01 pm
If you fail the IVA creditors can commence recovery action against you.

They do not have to accept payments in installments - they can go after the full debt plus interest.

You are at risk of Bankruptcy, CCJs and/or bailiffs etc.

Take care before doing anything rash - it might be best to let your IVA continue.
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