IVA Advice

goodluck_2

I have been in an IVA for 1 year now. But am now wondering if it would be better for me to go back to paying my creditors directly and to let my IP know that I want to do this instead. MY IP has said that I will have to pay the whole amount owing to the creditors. Can anyone give me advise on which would be the best thing to do? The IP gets a big chunk of the money that we pay to the IVA surely it woudl be better to pay the creditors directly again and try to build up our credit record again? Any advise out there?

immoral_angeluk

Do a comparison... How long is your IVA and how much would you end up paying (including fees) compared to if you went back to payment arrangements. You also have to remember that creditors will be likely to restart adding charges and interest.. and that at the end of your IVA, the rest of the debt is written off...

Charco_2

I wouldn't rush into this, your IP could bankrupt you if there would be ny value in it! (Cue all the posters now telling you how IPs are scum of the earth!)

They also might not bankrupt you, and it would be as easy as not paying your IVA for three months to simply get it failed.

However, run through the amounts an figures with us all here... your Credit File is going to go back six years anyway and it's still going to show the fact that you entered an IVA - it's not going to get better very quickly!

- How much are your debts? (Probably the same as they were when you entered the IVA... although the interest they missed out on in the last year can be added again!)
- How much are you currently paying towards your IVA?

Choo_Choo_4

Goodluck - I'm just wondering why you are considering failing the IVA in the first place in favour of going back to simply paying the creditors?

Surely the whole point of signing up to the IVA initially was that the payment was LESS than what you had to pay creditors each month? And the fees are usually deducted from the one monthly payment?? As opposed to be an additional payment ...

Are you struggling with the IVA payment? If so speak to the IP and advise them of this - they should work with you, so long as you can show them how it is no longer affordable ..

If it is your credit rating that you're worried about then I'd have to agree with Charco in that it's there now anyways and will be for 6 years so by pulling out now then you will go back to having to deal with the creditors on your own, debts increasing each month due to interest and charges and they will not be sympathetic to you if the car breaks down or the washing machine needs fixing - charges will still apply ... however in the IVA, your IP would have to allow you to cover these essential charges albeit it might mean your IVA will last an extra month or two ...

There might be other reasons that you want out though - the decision is yours but make sure you think it through and ask away on here ...