IVA - Did I make the right decision?!

Jadetabs

Hi,

Looking for some advice please!

I have around £12,000 of debt with a couple of different creditors. Last summer I felt a bit desperate with repayments etc and entered into an IVA with payplan, I think at the point it was just getting to me and I was worried about defaulting on payments so I made a rather snap decision and am thinking I've probably made the wrong decision. But it's been done now.

I've now been in the plan for 6 months but in the next 6 months my financial situation is looking like its going to change. I am going to have a larger disposable income and am thinking I could have the debt paid up in two/three years if I wasn't in the IVA.

Am I able to leave the IVA? I understand I still will have to pay payplan some money for the nominees fee etc. I would just rather pay my debt up sooner so would like to go about arranging my own debt management plan, luckily I only have a couple of creditors so I feel like this could be manageable.

If I do take this route of considering leaving the IVA, if they let me, should I contact my creditors before I leave to see if I can come to an agreement and then make my decision to end it based on that?

I know my IVA will now stay on my records for 6 years regardless if i leave but I would like to get a mortgage with my partner in the next few years. I have just done an experian credit report, and although I can see the IVA on there I have a credit rating of 938 (Good) as I have only ever missed a couple of payments.

Any help or advice would be greatly appreciated!

I would like to be debt free as soon as possible

Thanks
J

DorisTrousers

No one can tell you what to do of course, but you may want to compare how much you reckon it would cost you to see out the IVA, if you are in a better position then your payments should go up and you may be able to conclude it early, against how much it would cost to pay creditors directly yourself.

Your interest is frozen in the IVA, and where contractual (or better) payments can be made on debts (a fair assumption if you think you can clear in 2 to 3 years) in my experience creditors have no incentive or reason to freeze interest so there is every possibility that you will be faced with that problem going forward.

You could wait until it is definite, or not, that your situation is going to change, and benefit from the protection of the IVA in the meantime. If you leave now, and things don't improve, then your situation will be as bad, if not worse, than when you started out.

Good luck with whatever you decide.

rivig99

Hi

Could you not just up your payments on iva?

bnegative

From what i understand, the reality of you successfully obtaining a mortgage while the IVA is on your credit file is slim to none. Regardless if it has been paid off in full or not.

To leave your current IVA it would need to fail or a full & final offer accepted.

Have you explored the full & final avenue?