I am looking for information about cancelling an IVA

Get expert opinion. This is the place for new questions to be posted.
9 posts Page 1 of 1
User avatar
samila
Posts: 2
by samila » Sun Mar 04, 2018 5:57 am
Hi, I am looking for information about cancelling an IVA. I really feel like I was rushed into making this decision, however after carefully analyzing its impact in the long run I honestly believe this is not for me.
I would much rather negotiate directly with the creditors and agree a DMP which is a route I was not informed about during this process.
The first meeting with the creditors was on 12/02/2018 and the second meeting on 19/02. I received written confirmation that the IVA had been approved on 20/02.
Can this still be cancelled? Also, am I likely to incur any charges if I do so, considering we are still in the early stages of the IVA?
User avatar
J5453
Posts: 65
by J5453 » Sun Mar 04, 2018 7:09 am
There is some info on here about cancelling if you scroll down the page under “issues during IVA”.

I think your first step is calling your IP to give your reasons for wanting to cancel and to discuss your options in the circumstances and what it will involve.
User avatar
J5453
Posts: 65
by J5453 » Sun Mar 04, 2018 7:20 am
Just a couple of things about DMP’s too.

They can take longer to pay.

Creditors don’t tend to freeze interest like they do in an IVA.

Creditors can still contact you or others companies who have bought the debt, and can take action to try and recover the money even when you are in a DMP. Thank essentially could mean bailiffs calling or threat of court action.

These are the main reasons I went with an IVA. I was already stressed and didn’t want to add to it by the things I’ve mentioned.

Make sure you really do talk this one through with your IP or the citizens advice bureau which can give impartial advice.
User avatar
J5453
Posts: 65
by J5453 » Sun Mar 04, 2018 7:49 am
The above info is based on my experience and not an advisor.

It was 6 years ago since I took advice so I would check if things have changed to make DMP’s better.

Only from doing a bit of reading, it could be that freezing interest is down to the discretion of the creditor.

What is the same is that a DMP is not legally bound by terms and therefore creditors are not legally bound to stop contact like an IVA especially if you deal with them direct.

Hopefully someone else will come along and be less confusing than me!!
User avatar
kallis3
Forum Expert
Posts: 73082
Contact
by kallis3 » Sun Mar 04, 2018 9:02 am
I'm afraid your IVA will already have impacted on your credit score and will remain on your records for six years from the start regardless.

Why do you feel you were not advised properly?

With a DMP there is no guarantee that interest and charges will be frozen, it will go on for longer and creditors can continue to contact you.

You can let it fail by missing 3 payments.
User avatar
Foggy
Forum Expert
Posts: 26105
Contact
by Foggy » Sun Mar 04, 2018 9:47 am
As has already been mentioned you can allow the IVA to fail, but it will impact your credit score for the full 6 years. Your creditors will be allowed to add back interest and will not be bound to co-operate with any DMP proposals you might put forward. You will be basically back at square one, on your own. The IP would also be at liberty to pursue his nominees fee as a new debt, should his terms and conditions allow for such an eventuality.
User avatar
samila
Posts: 2
by samila » Mon Mar 05, 2018 9:54 am
I searched my name in the Individual Insolvency Register and it does not appear there yet, so I am still hopeful that the IVA has not been activated yet.
When I first called the debt helpline they didn't go through other options such as DMP.
Given the nature of my job some employer might have reservations about hiring a person with an IVA and 5/ 6 years is a long time to be tied up.
Also, I would like to apply for British citizenship and am worried this will backfire on me. I have been living and working in the UK for 18 years and never had any issues.
Unfortunately due to unforeseen circumstances I fell behind with my credit card payments and now I am in debt. I kept it for myself for a long time but last week I opened up to my close friends and family and they are willing to help come out of this hole. At this stage a DMP is a better option.
User avatar
Foggy
Forum Expert
Posts: 26105
Contact
by Foggy » Mon Mar 05, 2018 1:01 pm
If you have had the initial meeting and the creditors accepted the arrangement there is every chance that the IVA now exists. If so, you are stuck with it being on your files for the full 6 years. I took the best part of 6 months to "appear" on the Insolvency Register.
User avatar
kallis3
Forum Expert
Posts: 73082
Contact
by kallis3 » Mon Mar 05, 2018 1:51 pm
As stated - if you have had your meeting and been approved I'm afraid you can't do anything about it other than let it fail. As regards the register it may well be it hasn't been updated yet.
9 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”

Who is online

Users browsing this forum: No registered users and 11 guests