What are the implications of cancelling my IVA .

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glen
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by glen » Thu Mar 02, 2017 9:55 am
Thanks in advance for sharing your valued experience.

I'm considering concelling my iva after nearly 43 months, paying a little above 210/month for an original debt of 15k. Duration is expected to be 60moths.
Knowing what i know now, i don't want to be drugged through the mad towards the end as my employable skills have improved.
1: What consequences will i have to face for cancelling the iva
2: Which interest will creditors add on
3: Can i negotiate waver of interest
4: Approx interest to expe
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Foggy
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by Foggy » Thu Mar 02, 2017 10:01 am
Hi. I would advise against it at this stage, unless you have compelling reasons --- you are over half way there! In answer to your questions:

1: What consequences will i have to face for cancelling the iva --- You will be back to square one with your creditors, who will add back interest and possible late payment charges. They will also be able to pursue enforcement of the debt, including bankruptcy, if they see fit.

2: Which interest will creditors add on --- the contractual inbterest as agreed when you took the debt out.

3: Can i negotiate waver of interest --- you can try, but I doubt they will play ball, having already offered the olive branch in the form of an IVA to have it rejected.

4: Approx interest to expe ---- whatever the contractual amount accrued since the start of the IVA.
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kallis3
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by kallis3 » Thu Mar 02, 2017 10:09 am
I agree with Foggy - be a shame for it to fail now - you can see the light at the end of the tunnel!
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Michael Peoples
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by Michael Peoples » Thu Mar 02, 2017 10:25 am
I can only agree that it sounds much better to complete the existing IVA. You only have seventeen payments left and if your circumstances have changed then only half the extra money goes to creditors. If you do fail the IVA your credit file could be severely damaged for another six years which is likely something else you wish to avoid.
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glen
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by glen » Sun Mar 05, 2017 8:35 pm
Dear All,

First of all, sorry for my late response to your helpful and encouraging advice.

I very much appreciate all your recommendations and advice.

I'm speaking with friends and families to seek help in order to propose F&F. My annual review is due next month, however, If I'm lucky to propose F&F (with help from a third party) at current monthly payment (£210) * the remaining months to complete, could this offer stop the review going ahead as I fear the review might result in my monthly payment going up?

Many thanks once again in advance for your supports.

Kind regards
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Foggy
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by Foggy » Sun Mar 05, 2017 8:58 pm
The full review might be stopped -- some firms do a review for the variation meeting ( to propose the F&F) in order to give the creditors a full picture, but, if you are offering near what they would be getting anyway, they might not. I am afraid it is really down to how your IP likes to do things. As a F&F does save both IP and creditors a lump in administration the offer based on lower payment levels might still succeed if an increase is introduced.
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