HELP! IVA Cancel or Keep?

Mercury36 Forumite Posts: 1 Newbie
Hi All,

First time I've created a thread and really interested to know your thoughts..

Initially I thought an IVA was for me and for 2 and a half years it was... in the last 6 months my circumstances have changed, resulting in me looking for somewhere to live. In an ideal world, I would like to look at a mortgage but I'm under no illusion that this would take several years for this to become a reality. I am willing to make sacrifices in order to get to that point. My main question.. after almost 3 years of paying into an IVA would there be any "time" benefit to cancelling it and dealing with my debt directly with creditors?

Will paying my creditors directly improve my credit score quicker than waiting for my IVA to end and ultimately waiting for it to come off my credit record?

I've looked at what seems like 100s of advice websites but honestly, some seem quite contradictory.

Any advice would be greatly appreciated.

Thanks in advance


  • Scousegirl13
    Scousegirl13 Forumite Posts: 2
    First Anniversary First Post
    Hi Mercury,

    I used to work in an IVA company. I wouldn't recommend cancelling the IVA as once you cancel the IVA, all the interest that the creditors froze 3 years ago will be added back on to your debts so you will be worse off. Also even if you cancel the IVA, the IVA will remain on your credit file for 6 years. Your credit score wont be good till the IVA drops off in another 3 years time.
  • sourcrates
    sourcrates Forumite, Ambassador Posts: 27,655
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Plus there is the (albeit remote) possibility your creditors could petition for your bankruptcy if your arrangement fails, your best bet is to continue with it and get it successfully completed.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected]. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- The "provit letter" is here-
  • PrettyKittyKat
    PrettyKittyKat Forumite Posts: 1,270 Forumite
    I agree that if your objective is to get a mortgage then completing the IVA is your best options.

    I presume your change in circs hasn't affected your ability to pay? I would recommend getting into rented accomodation and using the next 3/4 years whilst your IVA completes and is removed from your credit file to save whatever money you can (e.g. your part of additional monies earned).
  • fatbelly
    fatbelly Forumite Posts: 19,184
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    The IVA stays on your record for 6 years, regardless.

    The individual creditor entries stay on your file for 6 years from when they are defaulted.

    So nothing you do now is going to change that situation.

    The question I think you are asking is - 3 years into an IVA is it best to see it complete or to get it terminated and apply for bankruptcy/DRO/etc.

    No-one can answer that question without more details regarding your situation.
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