Is there a way out of my IVA.

Fingers74

My IVA company has told me that they intend to increase my monthly payments but I can't afford it.I have been repaying my IVA for 43 months at £250 a month. They have recently written to me saying that I have to start paying them £350 a month. I never have £100 spare at the end of the month and I do not know how I will be able to give them this money. They have said that looking at my income and expenditure I have this surplus.I have asked what my options are because I do not have the money. They said that with 18 or 17 payments to make it is in my 'best interests to find the money' but we're unwilling to offer any other help. When I took out this IVA they could not do enough to help but now I feel I am on my own again and that this company are no longer interested in helping me but only in helping themselves.Can I opt out of my IVA? Is there another way I can repay my creditors?Any advice will be gratefully acceptedGary

Zebedee69

I think they will have to accept you cannot pay the excess. Also think about going along to your local CAB office and asking them for advice. Basically the company that organised your IVA cant make any more money from you so they want you to pay more and get lost a little bit earlier!

The alternative to an IVA is full blown bankruptcy. Basically if you dont meet the terms of the IVA you will find yourself intouch with the official reciever sooner or later. Not a great idea as an IVA thats completed can mean a quicker repair for your credit and a faster re-entry into the market so to speak.

Id go for the advice and the added clout that CAB carries and sort out a way to pay what your comfortable with. I wouldnt let yourself be pushed into paying what you cant afford.

Fingers74

Ok I'll go to the CAB. They said that even though they wanted to increase my payments I was still expected to make 60 payments.

Herbie21

Your post is so typical of many that we hear. When the IVA company is trying to sell you the idea of an IVA they are working for you and only you. However once the IVA is in place this loyalty MUST change.

This is becasue once agreed, the trustee has an obligation to the CREDITORS and NOT YOU to ensure that he collects as much money in as possible for the creditors.

It never ceases to amaze me that so many people are going into IVA's without really considering what they are doing. For instance:

Most IVA's last for 6 YEARS. And for this reason your credit rating is SHOT TO PIECES to many years. Bankruptcy however lasts just one year and in any cases that we see they are actually completed and you are discharge in approx: 6-8 MONTHS.

Most cases that I see concerning bankruptcy there are NO PAYMENTS made to the trustee. IVA's involve monthly payments for at least 5 years......and mainly payments that are unaffordable in the first place.

It is a well know fact that approx 40% af ALL IVA's FAIL.

Why did you go the route of an IVA in the first place and did you not instead contact creditors to reduce your repayemnts?

The situation now is very dependant on the wording of your IVA and your Income & Expenditure. These need to be checked again.

Considering that nearly 4 years have passed since the IVA was set up, and in that time we have had mortgage increases, rises in electricity, gas and fuel I am surprised that your I &E figures could show that you have MORE money available to pay to your creditors.....and not less.

I would sugeest reviewing the Income & Expenditure as a first option.

Do remember, very few....if any, IVA's companies petition for your bankruptcy.

immoral_angeluk

Who is your IVA with?

In_Search_Of_Me

I would ring CCCS for some advice or one of the other companies. I assume that this is being managed for one possibly off the tv for profit...? I dont know much about IVA's etc but just wanted to send a hug...

Dr_Hook

Herbie21 wrote: »

Most IVA's last for 6 YEARS. And for this reason your credit rating is SHOT TO PIECES to many years. Bankruptcy however lasts just one year and in any cases that we see they are actually completed and you are discharge in approx: 6-8 MONTHS.

5 years is much more common, unless there is a further 12 months payments to be introduced in lieu of equity. IVAs will remain on your credit file for 6 years from date of commencement of the IVA so (unless the IVA runs for over 6 years) your credit file will be 'shot' for just as long as it would be under bankruptcy.

I suggest you go back to your IP and query where they believe the increase can be found. If they say you have an additional £100 and you don't, then your income & expenditure review is incorrect.

Was this increase the result of an annual review, or was it drafted into the original proposal that payments should increase at this point for some reason?