I am going through the process of cancelling my iva

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joanne220
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by joanne220 » Fri Aug 25, 2017 4:10 pm
I am going through the process of cancelling my iva as my sister is giving me some money to sort it out myself, in the meantime, my father had suddenly passed away, any monies from his estate in which I receive, which isn't a great deal as there is 4 of us children, would it go to my iva even though I'm going through the process of cancelling it? The direct debit is cancelled so they will receive no more payments from me.
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Foggy
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by Foggy » Fri Aug 25, 2017 4:20 pm
Until you get the notice of termnation you are still bound by the IVA terms and your inheritance would be payable to the IVA, even after termination, as you became entitled to it whilst in the IVA. Cancelling the IVA, rather than making a full and final offer, might not have been the best way forward as you will now still owe the full original debt and your creditors are now free to add back the lost interest. With a F&F offer you would only have had to pay the outstanding IVA payments, which might well work out a lot less.
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kallis3
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by kallis3 » Sat Aug 26, 2017 4:23 pm
Just caught up with this and I do agree with Foggy. You may not be doing yourself any favours by just cancelling. How long have you been in your IVA for?
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Michael Peoples
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by Michael Peoples » Tue Aug 29, 2017 10:49 am
I agree that cancelling the IVA does not sound like the best option and you could even end up bankrupt if that is what creditors demand. If there is a windfall due and a third party offer a full and final settlement seems much more appropriate.
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Lisa Thomas
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by Lisa Thomas » Tue Aug 29, 2017 1:54 pm
Are you sure you mean you are cancelling your IVA?

The only way to do that if without offering a F&F or settling everything in full would be to breach and void it, which is not often recommended.

The inheritance will be due into the IVA - look at your paperwork and the terms relating to the windfall clause.

Consider using your sisters money to put forward a F&F, on top of the inheritance

https://youtu.be/h4dozq9aGak
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joanne220
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by joanne220 » Tue Aug 29, 2017 7:27 pm
Hi there, I know I feel a bit hasty cancelling now, I owe about 1300 and been in the iva since May this year, my head is all over the place with the sudden passing of my dad, so I thought what I would do was to pay the little 1s off, about 3500 then go back on the payment plan for the big 1, just so I had at least a couple of grand for my daughter and me to have a little money behind us for emergencies, thanks all for your help.
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joanne220
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by joanne220 » Tue Aug 29, 2017 7:29 pm
13000 I meant to put there not 1300 :?
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Lisa Thomas
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by Lisa Thomas » Wed Aug 30, 2017 8:14 am
How have you cancelled the IVA? Do you mean you cancelled it before it was put in place?
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kallis3
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by kallis3 » Wed Aug 30, 2017 9:00 am
Can you give us a bit more info?
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joanne220
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by joanne220 » Wed Aug 30, 2017 2:46 pm
No I already started it, I've paid 3 payments already then my sister gave me some money,so thought I'd sort it out myself, cancelled the iva and waiting for them to sort paperwork out, cancelled the direct debit over the phone, in the meantime my dad has passed away , i will sort some agreement with them myself, I know I should've gone the final offer route now but I haven't been thinking straight, been so stressed, wish I had waited now and not gone into the ova but hey ho no one knows what's round the corner.
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Michael Peoples
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by Michael Peoples » Thu Aug 31, 2017 8:23 am
I doubt if anyone will make you bankrupt for this amount especially when the IVA is so recent. You could look to settle the smaller debts at a discount and even the bigger ones will usually settle so you could be better off. However, as the IVA has not yet been terminated and you are aware of a potential windfall you really should advise the IP. You should also consider legal advice before you fail the IVA as the inheritance could come back to be a problem.
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Lisa Thomas
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by Lisa Thomas » Thu Aug 31, 2017 8:47 am
It's possibly not too late to stop the IVA from failing as its possible it has not yet formally been terminated.

Speak to your IP to find out the status and take advice as it may be better for you to keep it going.
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