Can i cancel IVA after 3 years?

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Natalie.c
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by Natalie.c » Sat Aug 19, 2017 12:42 pm
I am currently in an iva nearly 3 yrs in. Currently on payment break due to husband having accident
in last year iva has really affected me as i couldn't open account for my brownie unit or get my car insurance on finance because of it, i just got new credit report and shows i only owe £1500 could i cancel my iva and pay this on my own or could i still have hidden debt that my report has not shown me
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Foggy
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by Foggy » Sat Aug 19, 2017 1:42 pm
Balances on credit reports do not usually reflect the true picture -- many creditors transfer the toxic debt to dummy accounts until the debt is written off by the successful conclusion of the IVA. Also, if the IVA fails the creditors will add back lost interesrt for the last three years and possibly late paymant charges as well. Your debt would significantly increase. Failing the IVA ( they don't cancel -- the fail or terminate) will not help your credit scores either as the IVA will remain there until 6 years after the start date and defaults will also remain. Added to all of this the creditors would also be free to take any enforcement action they wish.

In short, failing the IVA is not something I would recommend.

Incidentally -- there are three credfit reference agencies. They do not all show the same creditors .. some crediors do not report to all three (some do not report to any of them ! ).
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kallis3
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by kallis3 » Sat Aug 19, 2017 2:00 pm
I agree with Foggy - don't let it fail now - speak to your IP again and see if anything else can be done.
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Radish
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by Radish » Sun Aug 20, 2017 1:03 pm
From my own experience - I had a lot of trouble in the middle of my own IVA - this included a marriage breakup - being kicked out of the house with virtually just the shirt on my back - followed by the dreaded CSA sending me a letter unexpected for my 17 year old demanding back money - and when I thought I had nothing to pay - then losing hours in my casual second job!! and was thinking the same as you...Nightmare situation!! . I reduced my payments for around a year (with the creditors approval) and stuck at it. Despite the fact I couldn't pay the full amount - it was capped on the end and when things improved - I went back to my original amount and had to pay back almost and extra year...But every reduced payment - I knew I was at least paying something towards the agreed total.

When I was thinking of cancelling - none of the maths added up very well in every scenario of coming out of the IVA early. In my case I would have still owed the same monies as when I started !! I would look for a short term solution till things get better. Being in the IVA was the hardest thing I've ever done - really hard, really testing - but the best thing I've ever done....As hard as it was... Hang in there.
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Lisa Thomas
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by Lisa Thomas » Mon Aug 21, 2017 9:30 am
If you fail your IVA Bankruptcy might be on the cards if your debts are over £5k.

You say you have £1,500 left to pay - is this the total of your creditors of the amount of contributions you are due to pay back over the remaining term?
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