ending an IVA early. Is it possible?

lukiesgirl

Hi
It has been a long time since my last post on here and things have been going very, very wrong. Due do some terrible events we have ended up with debts of 38,000+. My husband contacted Payplan who advised an IVA which started in July this year. I wish I could say that it has stopped me worrying but I feel worse now than before. We never defaulted on any repayments but it had got to the point where we were about to so my husband decided to take action before we accrued arrears and default charges. Now we have found out that my husband has been promoted and will get a salary increase of around 8000 a year starting in january. All I can see ahead of us is a bad credit rating, my husband having to remortgage at the end of the term to get his half of our property equity and, us having to hand over 50% of his salary increase for the forseeable future. I am still worrying myself sick in case we do something wrong or forget to inform payplan about something important. We have never sought to avoid repaying our debts so I am wondering if anyone on here knows if there is a way to offer our creditors an greatly increased monthly payment (they are currently getting 22p/£) in settlement so we can terminate the IVA and not have the worry of the charge on our home and feeling that we are trying to get out of paying our debts.
I know I sound stupid but I cannot express how much stress this has put me under so any advice from you lovely people would be muuch appreciated!

Gimpsdad

With respect.

Why are you worried about your credit rating? Is this the same credit rating that allowed you to run up unaffordable debts? Look at it from the other angle. Your IVA has allowed you to address this before it gets worse.

In an IVA, you must pay what you can. The deal isn't that you start at 22p, and if you pay that in, say, 3 years then it finishes. In years gone by, any salary increase would see you lose 100% of it, at least now you get to keep 50%. It follows that you are now better off than you were in July. You have legal protection. There is 100% guaranteed no interest, and you keep control of your asset, whereas in Bankruptcy you would have lost it. In a DMP you would have had other issues to deal with as well. Payplan are a reputable organisation so I don't really understand where your issues actually are.

lukiesgirl

Thanks Gimpsdad

I know what you are saying and yes I am being silly but I think that I did not word my post very well. I know that the IVA will run for 5 years irrespective of how much we pay. I was asking if it is possible to terminate the IVA by agreeing a to pay more than the 22p possibly even double the amount by agreement direct to our creditors.

Having a severly disabled son I tend to worry about things affect his future and I daresay all the legal ins and outs have made me feel a little frightened. Thank you for helping me see the positive side of the IVA I will just have to try to stop worrying about it all and just pay the payments!

Thanks again for taking the time to reply:)

Gimpsdad

No worries. It IS possible to end an IVA early. Work as hard as you can, save all your allowances/overtime/commission if applicable. Anything not rightly claimed by the terms of your IVA is yours. These could be used, in time, to offer a full and final settlement. Third party funds, if available can also be used.

If you could offer the equivalent of 18p tomorrow(a long shot I know) then they would, in my experience, snap your hand off.

I think I come across badly at times, so I apologise if you feel I was a little harsh.

lukiesgirl

No I did not think you were being harsh - far from it. I am not part of the IVA and I do have a small amount of income from an inheritance so I am thinking of asking my Mum to take charge of it so that I can't dig into it and then see how much I have in a years time. I know it will make me feel better that I am not trying to avoid paying off the debts.

When my husband starts his new job I will ring payplan to review our circumstances and then I can definately relax! I have always been a terrible worrier and if nothing else your post has reassured me that I am not going to get into trouble!