Is it possible to get out of an iva?

Get expert opinion. This is the place for new questions to be posted.
8 posts Page 1 of 1
User avatar
peter876
Posts: 3
by peter876 » Sat Sep 30, 2017 9:15 am
Is it possible to get out of an iva? I have started a new job and earn more money before I took the job I spoke to the iva people . I went through some quick calculations with them and the rough calculation they gave me was nearly as much as the debt was . It is three times what I am paying now . What is the best thing I can do ?
User avatar
Foggy
Forum Expert
Posts: 24126
Contact
by Foggy » Sat Sep 30, 2017 9:32 am
It depends on how long you have been in the IVA for one.

Your regular IVA payment should only increase by 50% of your net income increase -- so you would be 50% better off. and this increase should ( assuming you have the usual clauses) apply from the next annual review and not be back dated.

Now ... you CAN allow the IVA to fail, by missing three payments. However, your creditors will add back lost interest and will also then be able to pursue you for the outstanding balance ( which might well be higher than when you started ). They will be under no obligation to co-operate with you regarding a payment plan.
User avatar
Keith White
Industry Expert
Posts: 143
by Keith White » Sat Sep 30, 2017 9:39 am
Does the new job cost you any more eg travel expenses?
User avatar
sheraz.butt
Industry Expert
Posts: 153
by sheraz.butt » Sat Sep 30, 2017 12:03 pm
How long you have been on the IVA so far is a big factor in looking at your options further.

I would find out from your IP how much has been paid to the debts so far to work out which way to go from what Foggy said.
User avatar
peter876
Posts: 3
by peter876 » Sun Oct 01, 2017 10:30 am
sheraz.butt wrote:
How long you have been on the IVA so far is a big factor in looking at your options further.

I would find out from your IP how much has been paid to the debts so far to work out which way to go from what Foggy said.
sheraz.butt wrote:
How long you have been on the IVA so far is a big factor in looking at your options further.

I would find out from your IP how much has been paid to the debts so far to work out which way to go from what Foggy said.

The iva hasn't been going a year yet
User avatar
peter876
Posts: 3
by peter876 » Sun Oct 01, 2017 10:35 am
Keith White wrote:
Does the new job cost you any more eg travel expenses?

Yes but 50% of the new income and what the company told me on a rough calculation nearly equates to paying the debt off in full . So there is no benefit in being in an IVA . I would be as well offering reduced lump sums to my creiditors it would cost me less
User avatar
Foggy
Forum Expert
Posts: 24126
Contact
by Foggy » Sun Oct 01, 2017 10:45 am
peter876 wrote:
Keith White wrote:
Does the new job cost you any more eg travel expenses?

Yes but 50% of the new income and what the company told me on a rough calculation nearly equates to paying the debt off in full . So there is no benefit in being in an IVA . I would be as well offering reduced lump sums to my creiditors it would cost me less



Without the IVA you could well be paying interest as well, so will end up paying more --- your creditors would not have to agree to freeze interest, or, indeed, not to make you bankrupt if they so wished!

The benefits from the IVA are protection from enforcment action and the freezing of contractual interest as well as an end in 5 or 6 years, rather than having to pay a DMP at around the same amounts (they still work on your available spend) for the foreseeable future, having to probably pay interest as well. Also, without wanting to jinx things --- income can go back down as well as up in these uncertain times.

To be blunt --- you took on the debt, why not repay it in full if you are able ?
User avatar
kallis3
Forum Expert
Posts: 72034
Contact
by kallis3 » Sun Oct 01, 2017 11:51 am
Have to say I agree with Foggy - you run the risk of having all of your interest and charges reinstated if you go to a DMP.
8 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”

Who is online

Users browsing this forum: No registered users and 30 guests