how do i take control?

jdmcx

hi guys at the moment i am in a iva i need to know if there is a way that i can get out of the iva and take control with my creditors and pay them direct (however small), i know that i should've done this to begin with but i went with an iva out of fear even tho i have no assets so how do i get out of the iva that's the question can i default or request to leave? as i believe that the creditors could be approachable with no middle-man-iva's and that the iva company is only a waste of space... please help

Dr_Hook

Getting out of the IVA is as easy as ceasing to pay - effectively defaulting on the arrangement. But you should think very carefully before doing this. Depending on your situation and whether you have any assets, your creditors could request that your supervisor petitions for your bankruptcy. Even if that doesn't happen, depending how far you are into the IVA, you'll probably find that everything you have paid in so far will only go towards paying your IP's fees and won't have been distributed to creditors. Even if creditors have received some money, it's not likely to be much - they only tend to get the bigger dividends from the second or third year onwards - once the nominee's fee has been paid. Also bear in mind that anything not covered by the IVA will not be written off until the arrangement successfully completes.

Basically this means that the money you have paid so far will be lost and you will be back at square one. If you're dead set on quitting the VA, the one small silver lining is that you'll probably find that your debts have been sold to collection agencies who will likely be easier to negotiate settlements/reduced payments with.

moneysavingplumber

Phone one of the debt counselling services that should be listed at the top of the board to assess your situation. Even if you were missold an IVA, simply quitting it may not be your best option, only you can decide that but if I were you I would take impartial advce, try National Debtline and the CAB.